Common use of Debt Service Coverage Amount Clause in Contracts

Debt Service Coverage Amount. At any time determined by Agent, an amount equal to the maximum principal loan amount which, when bearing interest at a rate per annum equal to the then-current annual yield on ten (10) year obligations issued by the United States Treasury most recently prior to the date of determination plus two percent (2.0%) and payable based on a twenty-five year mortgage style amortization schedule (expressed as a mortgage constant percentage), could be paid by the monthly principal and interest payment amount resulting from dividing (x) the quotient obtained by dividing an amount equal to (i) the sum of the aggregate Operating Cash Flow from the Unencumbered Operating Properties for the preceding four fiscal quarters, minus the Capital Improvement Reserve, by (ii) 2.00, by (y) 12. An example of the calculation of the Debt Service Coverage Amount is set forth in Schedule 2 attached hereto. In the event that the Borrower shall have owned a property within the Unencumbered Operating Properties for less than four consecutive fiscal quarters, then for the purposes of performing such calculation, the Operating Cash Flow with respect to such property shall be annualized in such manner as the Majority Banks shall reasonably determine.

Debt Service Coverage Amount. At any time determined by Agent, an amount equal to the maximum principal loan amount which, when bearing interest at a rate per annum equal to the then-current annual yield on ten (10) year obligations issued by the United States Treasury most recently prior to the date of determination plus two percent (2.0%) and payable based on a twenty-five year mortgage style amortization schedule (expressed as a mortgage constant percentage), could be paid by the monthly principal and interest payment amount resulting from dividing (x) the quotient obtained by dividing an amount equal to (i) the sum of the aggregate Operating Cash Flow from the Unencumbered Operating Properties for the preceding four fiscal quarters, minus the Capital Improvement Reserve, by (ii) 2.00, by (y) 12. An example of the calculation of the Debt Service Coverage Amount is set forth in Schedule 2 attached hereto. In the event that the Borrower Borrowers shall have owned a property within the Unencumbered Operating Properties for less than four consecutive fiscal quarters, then for the purposes of performing such calculation, the Operating Cash Flow with respect to such property shall be annualized in such manner as the Majority Banks shall reasonably determine.