Coverage Test definition
Examples of Coverage Test in a sentence
Each prepayment of any Advance by the Borrower pursuant to this Section 2.05(a) shall in each case be in a principal amount of at least $100,000 (other than a prepayment made in order to cure any non-compliance with the Maximum Advance Rate Test, the Maximum Advance Rate Default Test or any Coverage Test) or, if less, the entire outstanding principal amount of the Advances of the Borrower.
Cash Contributions may be treated as Interest Proceeds if so directed by the holders of a Majority of the Preferred Shares where necessary (i) where necessary to cure or prevent any default or to permit the Interest Coverage Test to be satisfied, or if not satisfied, maintained or improved or (ii) to acquire a Workout Loan or Equity Security, and otherwise will be treated as Principal Proceeds; provided that any such designation shall be irrevocable.
If a Class C Coverage Test is not met on any Determination Date on which such Coverage Test is applicable, the Issuer shall apply available amounts in the Payment Account to make payments on the Securities on the applicable Payment Date pursuant to the Priority of Payments (a “Mandatory Redemption”).
Subject to the limitations set forth in the Indenture, on any Payment Date or Redemption Date, prepayments of principal may be made on the Class A-1A Loans in the event of redemptions or prepayments pursuant to the Indenture, including in connection with a failure of a Coverage Test, in connection with a Special Amortization or Optional Redemption (including, without limitation, a Refinancing).
The Parent may, but shall have no obligation to, at any time or from time to time make a capital contribution to the Borrower for any purpose, including for the purpose of curing any Default, satisfying any Coverage Test or the Maximum Advance Rate Default Test, enabling the acquisition or sale of any Collateral Loan or satisfying any conditions under Section 3.02.