Equity Residual definition
Equity Residual is defined in the definition of Securitized Lease Transaction.
Examples of Equity Residual in a sentence
Following the occurrence of a Securitized Lease Transaction, Borrower may be required pursuant to GAAP to record the sale of the lease as a borrowing so long as it continues to own the Equity Residual (as such term is defined in the definition of Securitized Lease Transaction), and therefore include in Indebtedness the amount of proceeds received, and include in Interest Expense an imputed amount of interest on such Indebtedness, determined in accordance with GAAP.
If at the end of such one hundred twenty (120) day period Borrower continues to own the Equity Residual, then Borrower must include the Indebtedness, Interest Expense and lease revenue in all of Borrower’s covenant calculations in the manner required by GAAP.