CASH FLOW DEFICIT Sample Clauses

The Cash Flow Deficit clause defines the procedures and responsibilities when a project's or entity's available cash is insufficient to meet its financial obligations. Typically, this clause outlines how deficits are identified, the order in which payments are prioritized, and the mechanisms for covering shortfalls, such as requiring additional contributions from stakeholders or drawing on reserve accounts. Its core practical function is to ensure that there is a clear, agreed-upon process for managing periods of negative cash flow, thereby reducing uncertainty and potential disputes among parties involved.
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CASH FLOW DEFICIT. If for any period Net Cash Flow for the Property is insufficient to pay Operating Costs, Borrower may obtain an Advance equal to the difference between Net Cash Flow and Operating Costs (but in no even the amount of the Operating Costs (payable for the period in question), on the following conditions (any or all of which may be waived by Lender): (a) Lender shall have no obligation to advance more than $600,000.00 in the aggregate under this Section 2.10; (b) any amount drawn under this Section 2.10 shall be used only for the payment of Operating Costs, (c) each request for an Advance hereunder shall be accompanied by a detailed report for the period in question establishing Net Cash Flow, together with such supporting data as Lender may request; (d) Lender shall have no obligation fund an Advance from the $600,000.00 which may be disbursed pursuant to the terms of this Section 2.10 for any expense that exceeds the line item allocation for said expense on the Operating Budget, which is a component part of the Approved Budget, without Lender's prior written approval of the excess; (e) Lender shall have no obligation to honor any request for an Advance under this Section 2.10 made more than fifteen (15) days after the expiration of the period for which an insufficiency of Net Cash Flow is claimed; and (f) Borrower is not in default under any provision of this Agreement. When and if such $600,000.00 in the aggregate which may be disbursed pursuant to the terms of this Section 2.10 is depleted, then and in such event all Operating Costs shall be paid by Borrower. Establishment of the $600,000.00 which may be disbursed pursuant to the terms of this Section 2.10 shall in no way relieve Borrower of its obligation to pay Operating Costs in the event Lender shall so require in its sole and absolute discretion. Borrower shall maintain the Operating Budget which provides for $62,500.00 in monthly operating expenses, or such other amount as may be approved by Lender in writing. Borrower expressly acknowledges that, whether or not it actually receives funds which are Advanced pursuant to this Section 2.10, any such Advances are of direct and substantial benefit to Borrower inasmuch as they are ▇▇▇▇▇ payments on Borrower's behalf, and inasmuch as such Advances eliminate the need for Borrower to obtain loans to replace the Advances or obtain additional equity from its shareholders therefor, both of which Borrower represents it is unwilling and unable to do. It is the int...
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Related to CASH FLOW DEFICIT

  • Excess Cash Flow In the event that there shall be Excess Cash Flow in excess of $2,500,000 for any Fiscal Year, the Borrower shall, not later than the tenth Business Day following the date that is ninety days after the end of such Fiscal Year, prepay the Loans in an aggregate amount equal to 50% (provided that (i) such prepayment percentage shall be 25% if, as of the last day of the most recently ended Fiscal Year, the Senior Secured Net Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.1(c) calculating the Senior Secured Net Leverage Ratio as of the last day of such Fiscal Year) shall be 1.80:1.00 or less and (ii) no such prepayment shall be required by this clause (e) if the foregoing Senior Secured Net Leverage Ratio as of the last day of such Fiscal Year shall be 1.30:1.00 or less) of the entire Excess Cash Flow for such Fiscal Year minus 100% of voluntary repayments of the Loans made during such Fiscal Year with Internally Generated Cash; provided, that, if at the time that any such prepayment would be required, the Borrower is required to repay or repurchase or to offer to repurchase or repay Senior Secured Debt permitted pursuant to Section 6.1 pursuant to the terms of the documentation governing such Indebtedness with all or a portion of such Excess Cash Flow (such Senior Secured Debt required to be repaid or repurchased or to be offered to be so repaid or repurchased, “Other Applicable ECF Indebtedness”), then the Borrower may apply such Excess Cash Flow on a pro rata basis to the prepayment of the Loans and to the repayment or re-purchase of Other Applicable ECF Indebtedness, and the amount of prepayment of the Loans that would have otherwise been required pursuant to this Section 2.10(e) shall be reduced accordingly (for purposes of this proviso pro rata basis shall be determined on the basis of the aggregate outstanding principal amount of the Loans and Other Applicable ECF Indebtedness at such time, with it being agreed that the portion of Excess Cash Flow allocated to the Other Applicable ECF Indebtedness shall not exceed the amount of such Excess Cash Flow required to be allocated to the Other Applicable ECF Indebtedness pursuant to the terms thereof, and the remaining amount, if any, of such net proceeds shall be allocated to the Loans in accordance with the terms hereof); provided further, that to the extent the holders of Other Applicable ECF Indebtedness decline to have such indebtedness repurchased or prepaid, the declined amount shall promptly (and in any event within ten Business Days after the date of such rejection) be applied to prepay the Loans in accordance with the terms hereof.

  • Cash Flow Owner acknowledges that the budget prepared by Manager, pursuant to paragraph 3(k), will contain a category labeled "Cash Flow." Owner agrees, in the event that the budgeted cash flow for the Property is "negative" in any month covered by the budget, to place sufficient funds in a bank account, or to permit Manager to transfer Owner's funds to such account, to make up the budgeted operating deficit. These funds must be placed in such account at least forty-five (45) days before the budgeted deficit is to occur.

  • Net Cash Flow The term “Net Cash Flow” shall mean all cash and cash equivalents from all sources on hand as of the last day of the measurement period prior to any distributions to the Partners, and after the payment of all then due expenses of operating and managing the Restaurants, and after payment of all debts and liabilities and after any prepayments of any debts and liabilities that the General Partner, in its reasonable and good faith discretion, elects to cause to be made, and after the establishment of any reserves reasonably deemed necessary by the General Partner for (i) the repayment of any due debts or liabilities, including debts owed to the General Partner; (ii) the working capital requirements; (iii) capital improvements and replacement of furniture, fixtures or equipment; and (iv) any contingent or unforeseen liabilities. In determining Net Cash Flow of each Restaurant there shall be deducted the Supervision Fee and the Accounting Fee as provided in Section 4.7, the Advertising Payment and the Insurance Payment as provided in Section 4.8, and the OSRS Charges as provided in Section 4.2.

  • Cash Flow Coverage Ratio The ratio of (a) the Company’s Cash Flow to (b) the sum of (i) the Company’s consolidated Interest Expense plus (ii) the Company’s scheduled payments of principal (including the principal component of Capital Leases) to be paid during the 12 months following any date of determination shall at all times exceed (1) 1.5 to 1.0. Compliance with the ratio will be tested as of the last day of each month, with Cash Flow and Interest Expense being calculated for the twelve months then ended.

  • Cash Flow Leverage Ratio The Borrower will not permit the Cash Flow Leverage Ratio on the last day of any fiscal quarter to exceed 3.50 to 1.00.