Collateral Quality Matrix Grid Clause Samples
The Collateral Quality Matrix Grid clause defines the standards and categories for the types and quality of collateral that are acceptable under an agreement. It typically outlines specific criteria such as credit ratings, asset types, or concentration limits, and may assign different haircuts or values to collateral based on these categories. By providing a clear framework for evaluating and accepting collateral, this clause ensures that both parties understand what is permissible, thereby reducing disputes and managing credit risk effectively.
Collateral Quality Matrix Grid. For purposes of this Agreement, the Grid Column applicable at any time shall be the highest Grid Column for which each of the Borrowing Base Test, the Overcollateralization Ratio Test and each of the Collateral Quality Tests is satisfied. If no Grid Column satisfies such condition, Grid Column (1) shall apply. The Borrower or the Servicer, as applicable, shall specify the then applicable Grid Column in each Borrower Notice and each Monthly Report and shall give written notice of the applicable Grid Column to the Facility Agent and the Documentation Agent each other time when under the terms of this Agreement or another Transaction Document compliance with the Borrowing Base Test, the Overcollateralization Ratio Test or any Collateral Quality Test is required to be determined.
Collateral Quality Matrix Grid. For purposes of this Agreement, the Grid Column applicable at any time after the two-year anniversary of the Closing Date shall be the highest Grid Column for which each of the Borrowing Base Test, the Overcollateralization Ratio Test and each of the Collateral Quality Tests is satisfied. If no Grid Column satisfies such condition after the two-year anniversary of the Closing Date, Grid Column (1) shall apply. After the two-year anniversary of the Closing Date, the Borrower or the Servicer, as applicable, shall specify the then applicable Grid Column in each Borrower Notice and each Monthly Report and shall give written notice of the applicable Grid Column to the Facility Agent and the Documentation Agent each other time when under the terms of this Agreement or another Transaction Document compliance with the Borrowing Base Test, the Overcollateralization Ratio Test or any Collateral Quality Test is required to be determined.