Financial Trap definition
Financial Trap means a test within an Originated Loan Agreement relating to Loan to Value Cover, Interest Cover, Projected Interest Cover or Debt Service Cover ratios, failure to meet which will result in surplus funds being retained in the Rental Income Account rather than being paid into the General Account for use by the Borrower.
Financial Trap means a test in a Loan Agreement relating to Interest Cover in the case of the Merry Hill Loan or in relation to the Borehamwood Investments Limited & Oakdale Investments Limited Loan and the Chesterton Commercial (Berks) Limited Loan, the Projected Interest Cover Percentage, failure to meet which will result in surplus funds being transferred from the Rent Account to the Deposit Account or in the case of the Merry Hill Loan, towards prepayment of the Merry Hill Loan rather than being released to the Borrower or paid into the General Account.