Capital Coverage Deficit Sample Clauses
The Capital Coverage Deficit clause defines the procedures and consequences that apply when a party's capital falls below a required threshold. Typically, this clause outlines the steps the affected party must take to remedy the shortfall, such as providing additional collateral or capital within a specified timeframe, and may specify the rights of the other party if the deficit is not cured, such as suspending obligations or terminating the agreement. Its core function is to ensure that both parties maintain adequate financial resources, thereby reducing counterparty risk and protecting the integrity of the contractual relationship.
Capital Coverage Deficit. No Capital Coverage Deficit exists or would exist immediately after giving effect to this Amendment or the transactions contemplated hereby.
Capital Coverage Deficit. At no time prior to the Final Payout Date shall Seller permit a Capital Coverage Deficit to exist at such time.
Capital Coverage Deficit. Seller has determined that, immediately after giving effect to each Purchase hereunder (including the initial Purchase on the date hereof), that no Capital Coverage Deficit exists at such time.
Capital Coverage Deficit. At no time prior to the Termination Date shall Seller permit a Capital Coverage Deficit to exist for a period of two (2) Business Days after an Authorized Officer of Seller or the Servicer knows of the existence thereof.
Capital Coverage Deficit. No Capital Coverage Deficit exists after giving effect to this Amendment and the Amendment Reduction.