Examples of Cash Trap Event in a sentence
The existence of a Cash Trap Event shall be determined by Lender in its reasonable good faith determination.
If Lender determines that a Cash Trap Event has occurred, Lender shall send the Borrowers written notice thereof.
During the continuance of any Event of Default, and at any time that a Cash Trap Event is in effect, the Borrowers shall not make any distributions of cash or other property to any Borrower Party, or make any payments in lieu thereof, without Lender's prior written approval, which may be granted or withheld in Lender's sole discretion.
A "CASH TRAP EVENT" shall occur as of any Calculation Date when the Debt Yield is less than the Minimum Debt Yield for the trailing twelve (12) month period ending on such Calculation Date and shall continue to exist until such time as the Minimum Debt Yield test has been satisfied for three (3) consecutive Calculation Dates (on a trailing twelve (12) month basis) following the commencement of the applicable Cash Trap Event.
Pursuant to the definition of Cash Trap Event, RTP’s breach of this covenant allowed ORIX to declare a Cash Trap Event.