Collateral Coverage Requirement Clause Samples

Collateral Coverage Requirement. The Loan Parties shall be required to pledge or cause to be pledged to the Lender, and keep in full force and effect until Full Payment of the Secured Obligations, Collateral having an aggregate value sufficient to collateralize the original principal amount of the Term Loan A-2 Principal Balance as of the Amendment 1 Effective Date on at least a 1:1 basis (the “Collateral Coverage Requirement”). ConcurrentlyParent has granted and will grant the Lender the following Mortgages: (a) concurrently with the execution and delivery of this Agreement on the Restatement Date, Parent will grantgranted the Lender the Initial Mortgages with respect to the Janesville, WI Parcel and the Glencoe, MN Parcel; (b) following the Restatement Date, [Parent] granted the Lender the Mortgages with respect to the Rochester, MN Parcel and the Ripon, WI Parcel; and (c) concurrently with the execution and delivery of Amendment 1 on the Amendment 1 Effective Date, [Parent] will grant the Lender a Mortgage with respect to the Montgomery, MN Parcel. In the event that, following the receipt of the third party appraisals required to be delivered to the Lender after the RestatementAmendment 1 Effective Date pursuant to Section 7.14(b) with respect to the Janesville, WI Parcel and the GlencoeMontgomery, MN Parcel, the Lender determines the total value of the Janesville, WI Parcel and the Glencoe, MN ParcelMortgaged Properties is insufficient to satisfy the Collateral Coverage Requirement, then, within thirty (30) days of the Lender’s delivery of notice of such determination to the Borrowers, the Loan Parties shall, at their option, either (a) prepay the Term Loan A-2 or (b) pledge additional real property or other collateral satisfactory to the Lender in its sole discretion, such that, in the case of either clause (a) or clause (b), the Collateral Coverage Requirement is satisfied after giving effect thereto (it being the intention of the parties hereto that, in the event the Collateral Coverage Requirement is not satisfied based on the total value of the Janesville, WI Parcel and, the Glencoe, MN Parcel, the Ripon, WI Parcel, the Rochester, MN Parcel, and the M▇▇▇▇▇▇▇▇▇, MN Parcel, and the Loan Parties elect to pledge additional collateral to the Lender pursuant to the preceding clause (b), the Loan Parties, as necessary, shall, first, grant a first priority Mortgage to the Lender with respect to the Rochester, MN Parcel and/orany other real property acceptable to the Ripon, WI ParcelLende...