Significant Deficiency Clause Samples

A Significant Deficiency clause defines what constitutes a major weakness or shortcoming in a company's internal controls over financial reporting. In practice, this clause typically outlines the criteria or thresholds for identifying such deficiencies, such as failures that could lead to material misstatements in financial statements or recurring errors in accounting processes. Its core function is to ensure that both parties recognize and address serious control issues promptly, thereby reducing the risk of financial inaccuracies and supporting regulatory compliance.
Significant Deficiency. A clearly definable hazard or a clearly definable potential for failure or is unsafe or not functioning. A state in which a system or component cannot be operated by normal operating controls.
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Significant Deficiency. A significant deficiency is one that creates a signifi- cant risk of loss to the Government, or involves acceptance of a borrower or property not permitted by Agency reg- ulations. Such cases may result in pro- bation or withdrawal of the Lender’s approval for program participation. Examples of significant deficiencies in- ▇▇▇▇▇ ▇▇▇▇▇ miscalculation of income, acceptance of property that is severely deficient of the required standards, missing builder certifications, and con- struction changes that materially af- fect value without proper change or- ders.
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Significant Deficiency. The Facilitator of a Circle shall have the Accountability for auditing a Sub-Circle’s meetings and records as-needed, as specified in Section 6.4.1(d), except that if such Facilitator is also the Lead Link or Facilitator of the Sub-Circle, then such Accountability, with regard to that specific Sub-Circle, shall instead be placed on the Rep Link of the Circle, or, if such Rep Link is also the Lead Link or Facilitator of the Sub-Circle, then to the Secretary of the Circle, or, if such Secretary is also the Lead Link or Facilitator of the Sub- Circle, then to the longest-term Circle Member of the Circle who is not also the Lead Link or Facilitator of the Sub-Circle nor the Lead Link of the Circle. If such Person with such Accountability determines that a Sub-Circle so audited evidences behavior conflicting with the processes and rules described in this Agreement (a “Significant Deficiency”), such Person shall declare such to his or her fellow Circle Members, and such declaration shall trigger the restoration process described in Section 8.8.1.
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Related to Significant Deficiency

  • Waiver; Deficiency Each Grantor waives and agrees not to assert any rights or privileges which it may acquire under Section 9-112 of the New York UCC. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Administrative Agent or any Lender to collect such deficiency.

  • Obtain Deficiency If Lender chooses to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency remaining on the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall be liable for a deficiency even if the transaction described in this subsection is a sale of accounts or chattel paper.

  • Anti-Deficiency Act Pursuant to 31 U.S.C. §1341 nothing contained in this Agreement shall be construed as binding the NPS to expend in any one fiscal year any sum in excess of appropriations made by Congress, for the purposes of this Agreement for that fiscal year, or other obligation for the further expenditure of money in excess of such appropriations.

  • Material Contract Defaults The Company is not in default in any material respect under the terms of any outstanding contract, agreement, lease, or other commitment which is material to the business, operations, properties, assets, or financial condition of either of them, and there is no event of default or other event which, with notice or lapse of time or both, would constitute a default in any material respect under any such contract, agreement, lease, or other commitment in respect of which the Company has not taken adequate steps to prevent such a default from occurring.

  • No Existing Default No Default or Event of Default shall have occurred and be continuing (i) on the borrowing, continuation or conversion date with respect to such Loan or after giving effect to the Loans to be made, continued or converted on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after giving effect to the issuance or extension of such Letter of Credit on such date.