Cash Reserve Amount Clause Samples
The Cash Reserve Amount clause defines the specific sum of money that must be set aside and maintained in a designated account as a financial safeguard. Typically, this amount is held by a trustee or agent and is used to cover certain obligations, such as debt service payments, operating expenses, or unforeseen costs. By requiring a cash reserve, the clause ensures that funds are readily available to meet critical financial commitments, thereby reducing the risk of default and providing assurance to lenders or other stakeholders.
Cash Reserve Amount. The Cash Reserve Amount shall not be less than the Cash Reserve Required Amount (after giving effect to such Borrowing and the designation of any proceeds of the Borrowing deposited in the applicable Borrower’s Collection Account as part of the Cash Reserve Amount).
Cash Reserve Amount. The Borrower shall have complied with its obligations under Section 3.3(b).