Common use of Security Cover Clause in Contracts

Security Cover. 24.1 Minimum required security cover (a) Clause 24.2 (Provision of additional security; prepayment) applies if, the Facility Agent at any time following the Delivery Date, notifies the Borrower that the Security Cover Ratio is below 130 per cent. (b) The Facility Agent shall test the minimum required security cover under this Clause 24.1 (Minimum required security cover) on each Testing Date and at any other time as the Facility Agent may require at the Finance Parties' expense (unless, as a result of such test, the Facility Agent determines that a Default has occurred and is continuing, in which case, at the expense of the Borrower).