Examples of DSCR in a sentence
If for any reason the minimum DSCR is not met then Borrower shall, within thirty (30) days after Xxxxxx’s demand, immediately reduce the unpaid principal balance of the Loan in an amount which would cause the minimum DSCR requirement to be met.
If an Event of Default (as defined in Article V hereof or elsewhere in this Agreement) shall have occurred and be continuing or should Borrower fail to meet the minimum DSCR (as defined in Section 3.3), Borrower shall not make, pay or distribute to any of its members, shareholders, partners or affiliates any distributions, dividends, indebtedness repayments, consulting or any other payments of any kind whatsoever.
Unless otherwise agreed or required by Lender at any time or from time to time, DSCR shall be calculated by taking the Net Operating Income for the Property and dividing the Net Operating Income by the annual debt service payments due under the Loan Documents.
DSCR shall be calculated by Lender semi-annually at a minimum or within reasonable discretion, on a cash flow basis, based on the historical twelve (12) months performance of the Premises, annualized (typically trailing twelve (12) months) beginning with mid-year ending June 30, 2024, and continuing each June 30 thereafter until the Loan is paid in full.