Negative Cash Balance Sample Clauses
The Negative Cash Balance clause defines how situations are handled when an account or fund shows a cash balance below zero. Typically, this clause outlines the responsibilities of the account holder or fund manager to cover the shortfall, possibly by transferring funds, liquidating assets, or incurring interest charges on the negative amount. Its core practical function is to ensure that any deficit is promptly addressed, thereby maintaining financial integrity and preventing prolonged overdrafts or associated risks.
Negative Cash Balance. Notwithstanding anything herein to the contrary, as a condition to any purchase of an additional Collateral Obligation, if the balance in the Principal Collection Subaccount after giving effect to (i) all expected debits and credits in connection with such purchase and all other sales and purchases (as applicable) previously or simultaneously committed to, and (ii) without duplication of amounts in the preceding clause (i), anticipated receipts of Principal Proceeds, is a negative amount (unless such negative amount is due to an administrative error or omission), the absolute value of such amount may not, for a period longer than 30 days, be greater than 5.0% of the Aggregate Principal Balance of the Collateral Obligations as of the Measurement Date immediately preceding the trade date for such purchase.
Negative Cash Balance. If at any time in any fiscal year during the term hereof, there shall be a negative cash balance in the Joint Account, Grant Brothers will loan funds, on an interest-free basis, to Grant Auto to eliminate the negative cash balance for such period as the loan is required. Grant Auto will repay the loan to Grant Brothers as soon as reasonably practicable. In such event, prior to making any distribution pursuant to section 2.3(c)
(1) during such fiscal year (except regarding the required distributions to Grant Auto for the fiscal periods ended December 31, 2000 and December 31, 2001), the Grant Brothers loan must be repaid in full before any distribution is made under section 2.3(c). Grant Brothers will forgive that portion of any loan advanced to Grant Auto which it is not repaid within the one year period following the date on which any loan is advanced.
Negative Cash Balance. If at any time in any fiscal year during the term hereof, there shall be a negative cash balance in the Joint Account, funds shall be contributed to the Joint Account by the parties as follows until any such shortfall shall be covered:
(A) by Grant Brothers up to an amount equal to the aggregate Grant Brothers Bonus paid to Grant Brothers through such date;
(B) by Grant Auto up to an amount equal to the aggregate Grant Auto Bonus paid to Grant Auto through such date;
(C) by Grant Brothers up to an amount equal to the aggregate Grant Brothers Base Compensation paid to Grant Brothers through such date;
(D) by Grant Auto up to an amount equal to the aggregate Grant Auto Base Compensation paid to Grant Auto through such date; and
(E) by Grant Brothers.
(1) during such fiscal year, the parties shall be entitled to receive an amount equal to their contributions pursuant to this section 2.3(c)(2) in the reverse order in which such contributions were made.