Watched Loans Sample Clauses
The "Watched Loans" clause defines a category of loans that are subject to heightened monitoring due to increased risk or early warning signs of potential default. In practice, this clause typically outlines the criteria for designating a loan as "watched," such as missed payments, declining collateral value, or adverse changes in the borrower's financial condition. By formally identifying and tracking these loans, the clause enables lenders to take proactive measures, such as increased reporting requirements or early intervention, thereby helping to manage credit risk and prevent losses.
Watched Loans. At any time prior to the Revolver Termination Date, fifty percent (50%) or more of the total Approved Financings are Watched Loans.
Watched Loans. At any time prior to the Maturity Date, fifty percent (50%) or more of the total Approved Financings are Watched Loans.
Watched Loans. (i) The Administrative Agent may (and shall at the request of the Required Lenders) designate any Approved Financing as a Watched Loan to the extent the Administrative Agent or the Required Lenders, as the case may be, reasonably believes such Approved Financing is subject to any of the events set forth in the definition of “Watched Loan”.
(ii) (A) (x) Each Borrower and Administrative Agent (acting at the written direction of Required Lenders) will negotiate in good faith to adjust the Applicable Valuation Percentage and if applicable, the Modeled Ground Lease Rents, of each Watched Loan, upon the initial designation pursuant to Section 8.1.3(b)(i) and following any event, circumstance or condition that is either not known by the Administrative Agent and Lenders at the time of such initial designation or occurs after such designation, in each case, to the extent such event, circumstance or condition would independently satisfy any of the “Watched Loan” conditions as determined by the Required Lenders in good faith; and (y) if such Borrower and Required Lenders are unable to come to an agreement as to the adjustments to be made, such adjustments shall be determined by the Administrative Agent (at the direction of the Required Lenders) and (B) subject to clauses (iii) and (iv) below, the adjustments determined in accordance with sub-clause (A) shall be applied to the Borrowing Base effective on either the date that is ten (10) Business Days after the date on which the parties mutually agree as to such adjustment or if the parties cannot agree, on the date that is ten (10) Business Days after the date on which such adjustment is determined by the Required Lenders.
(iii) Notwithstanding Section 8.1.3(b)(ii), any Approved Financing that becomes a Zero Value Approved Financing shall immediately have its Applicable Valuation Percentage reduced to 0% and Borrowers shall deliver a revised Borrowing Base Certificate reflecting the adjusted valuation of the Eligible Collateral resulting from such reduction in accordance with Section 8.1.1(b); provided that if Borrowers believe that an Approved Financing that would otherwise constitute a Zero Value Approved Financing satisfies the conditions set forth in clause (A) of the first sentence of the definition of Delinquent U.S. Federal Government Contract, Borrowers shall notify the Administrative Agent of such fact. If the Administrative Agent agrees in writing with Borrowers that such Approved Financing is a Delinquent U...