Capital Adequacy definition

Capital Adequacy has the meaning assigned to it in Section 2.04(b).
Capital Adequacy. If any present or future law, governmental rule, regulation, policy, guideline, directive or similar requirement (whether or not having the force of law) imposes, modifies, or deems applicable any capital adequacy, capital maintenance or similar requirement which affects the manner in which Commercial banks generally allocate capital resources to their commitments (including any commitments hereunder), and as a result thereof, in the opinion of a Lender, the rate of return on such Lender's capital with regard to the Loans is reduced to a level below that which such Lender could have achieved but for such circumstances, then in such case and upon notice from Agent and/or such Lender to Borrower, from time to time, Borrower shall pay such Lender such additional amount or amounts as shall compensate such Lender for such reduction in its rate of return. Such notice shall contain the statement of such Lender with regard to any such amount or amounts which shall, in the absence of manifest error, be binding upon Borrower. In determining such amount, such Lender may use any reasonable method of averaging and attribution that it deems applicable.

Examples of Capital Adequacy in a sentence

  • Increased Costs; Capital Adequacy; Illegality; Rating Requests Section 2.14.

  • The Bonds have been issued on terms so that the Bonds will qualify as Additional Tier 1 capital when measuring the Issuer's Capital Adequacy under the Capital Requirement Regulations.


More Definitions of Capital Adequacy

Capital Adequacy. As used in this section, the term "Regulatory Change" means any change enacted or issued after the date of this Agreement of any (or the adoption after the date of this Agreement of any new) federal or state law, regulation, interpretation, direction, policy or guideline, or any court decision, which affects (or, in the case of a court decision would, if the decision were applicable to any Lender, affect) the treatment of any Loan or any commitment of any Lender hereunder as an asset or other item included for the purpose of calculating the appropriate amount of capital to be maintained by such Lender or any corporation controlling such Lender. If such Regulatory Change has the effect of reducing the rate of return on such Lender's or such corporation's capital as a consequence of the Loans or commitments of such Lender hereunder to a level below that which such Lender or such corporation could have achieved but for such Regulatory Change (taking into account such Lender's or such corporation's policies with respect to capital adequacy) by an amount deemed in good faith by such Lender to be material, then from time to time following notice by such Lender to the Company of such Regulatory Change, within ten days after demand from such Lender, the Company shall pay to such Lender such additional amount or amounts as will compensate such Lender or such corporation, as the case may be, for such reduction.
Capital Adequacy. Increased Costs: Illegality.....................16 1.17
Capital Adequacy means the component within the SCALE model that measures a financial institution to determine if solvency can be maintained due to risks that have been incurred as a course of business.
Capital Adequacy means the legal capital prescribed by the Bank in terms of money or assets invested or available for investment in the business that is sufficient for the sustainability of the financial service provider;
Capital Adequacy means adequate financial resources to meet business commitments and to withstand risks to which a licensed person may be subjected;
Capital Adequacy means the assessment of adequacy of the bank’s capital base to cover losses caused by financial and operational risks.