Debt Service Coverage Requirements Clause Samples
The Debt Service Coverage Requirements clause sets a minimum financial threshold that a borrower must maintain to ensure they can meet their debt repayment obligations. Typically, this involves requiring the borrower to maintain a certain ratio—such as net operating income to debt service payments—over a specified period, with regular financial reporting to demonstrate compliance. This clause serves to protect lenders by reducing the risk of default, ensuring that the borrower remains financially stable enough to make timely loan payments.
Debt Service Coverage Requirements. (a) Maintain (commencing with the closing of the Loan) and within forty-five (45) days after the end of each fiscal quarter of Borrower, provide evidence to Lender of the achievement of, the following debt service coverage ratios until the Loan is paid in full:
(i) a Debt Service Coverage for the Facility, after deduction of Actual Management Fees, of not less than 1.0 to 1.0; and
(ii) a Debt Service Coverage for the Facility after deduction of Assumed Management Fees, of not less than 1.25 to 1.0.
(b) If Borrower fails to achieve or provide evidence of achievement of the Debt Service Coverage for the Facility, Borrower may deposit with Lender, at Borrower's option within fifteen (15) days of such failure, additional cash or other liquid collateral in an amount which, when added to the first number of the debt service coverage calculation, would have resulted in the noncomplying debt service requirement having been satisfied. If after Borrower has deposited such additional cash or liquid collateral, Borrower again fails to achieve or provide evidence of the achievement of the Debt Service Coverage for the Facility requirements set forth above and such failure continues for two (2) consecutive quarters, Borrower may deposit with Lender, at Borrower's option within fifteen (15) days after written notice to Borrower of such failure, additional cash or other liquid collateral (with credit for amounts currently being held by Lender pursuant to the foregoing sentence), in an amount which, if the same had been applied on the first (1st) day of the first quarter for which such noncompliance of the debt service coverage requirement occurred to reduce the outstanding principal indebtedness of the Loan, would have resulted in the noncomplying debt service coverage requirement having been satisfied. Any additional cash or liquid collateral deposited by Borrower hereunder in order to achieve the required Debt Service Coverage for the Facility and cure any existing default with respect thereto will be held by Lender in a standard custodial account and shall constitute additional collateral for the Loan Obligations and an "Account" as defined in this Agreement, and, upon the occurrence of an Event of Default, may be applied by Lender, in such order and manner as Lender may elect, to the reduction of the Loan Obligations. Borrower shall not be entitled to any interest earned on such additional collateral. Provided that there is no outstanding Default or Event of Default, ...
Debt Service Coverage Requirements. (a) Commencing with the closing of the Loan and thereafter on the first day of each fiscal quarter, provide evidence to Lender within fifteen (15) days of such date of the achievement and maintenance of the following quarterly Debt Service Coverage ratios based upon operations for the previous twelve (12) months:
(i) a Debt Service Coverage for the Nursing Home, after deduction of Actual Management Fees, of not less than 1.0 over 1.0;
(ii) a Debt Service Coverage for the Nursing Home, after deduction of Assumed Management Fees, of not less than 1.10 over 1.0; and
Debt Service Coverage Requirements. Maintain and, within forty-five (45) days after the end of the applicable fiscal quarter of Borrower set forth below, provide evidence to Lender of the achievement of, the following Debt Service Coverage Ratios until the Loan is paid in full:
(a) a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only payments due under the Loan, of not less than 1.10 to 1.0 for the fiscal quarter ending September 30, 2015 (tested based on a trailing 3-calendar month basis);
(b) a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only payments due under the Loan, of not less than 1.20 to 1.0 for the fiscal quarters ending December 31, 2015 (tested based on a trailing 3-calendar month basis), March 31, 2016 (tested based on a trailing 6-calendar month basis), and June 30, 2016 (tested based on a trailing 9-calendar month basis) and September 30, 2016 (tested based on a trailing 12-calendar month basis); and
(c) a Debt Service Coverage Ratio for the Facility, tested on the basis of principal and interest payments due under the Loan, of not less than 1.25 to 1.0 for the fiscal quarters ending December 31, 2016, March 31, 2017 and June 30, 2017, and each quarter thereafter during the Loan term, in each case tested based on a trailing 12-calendar month basis.
Debt Service Coverage Requirements. [Intentionally Deleted] ----------------------------------
Debt Service Coverage Requirements. So long as Borrower is current on all debt service payments payable under the Loan, the failure to meet any debt service coverage requirements at any time or times shall not constitute a default under the Loan
Debt Service Coverage Requirements. (a) Maintain (commencing with the closing of the Loan), and within forty-five (45) days of the end of each fiscal quarter provide evidence to Lender of the achievement of, the following debt service coverage ratios (calculated on a trailing 12 month basis) until the Loan Obligations are paid in full:
(i) a Debt Service Coverage for the Facility, after deduction of Actual Management Fees, of not less than 1.0 to 1.0; and
(ii) a Debt Service Coverage for the Facility, after deduction of Assumed Management Fees, of not less than 1.25 to 1.0.
(b) If Borrower fails to achieve or provide evidence of achievement of the Debt Service Coverage for the Facility as required above upon fifteen (15) days written notice to Borrower, Borrower will deposit with Lender additional cash or other liquid collateral in an amount which, when added to the first number of the debt service coverage calculation, would have resulted in the noncomplying debt service requirement having been satisfied. If such failure continues for two (2) consecutive quarters, on the third consecutive quarter, if Borrower again fails to achieve or provide evidence of the achievement of the Debt Service Coverages required
Debt Service Coverage Requirements. (a) Maintain (commencing with the quarter ending December 31, 2006, and within forty-five (45) days after the end of each fiscal quarter, provide evidence to Lender of the achievement of, the following Combined Debt Service Coverage Ratios until the Loan is paid in full:
(i) For quarters ending December 31, 2006, and March 31, 2007, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than .80 to 1.0 for the preceding three (3) month period;
(ii) For quarters ending June 30, 2007, and September 30, 2007, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than .90 to 1.0 for the preceding three (3) month period; and
(iii) For quarters ending December 31, 2007, and March 31, 2008, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than 1.0 to 1.0 for the preceding three (3) month period;
(iv) For quarters ending June 30, 2008, and September 30, 2008, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than 1.10 to 1.0 for the preceding three (3) month period;
(v) For quarters ending December 31, 2008, and March 31, 2009, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than 1.20 to 1.0 for the preceding three (3) month period;
(vi) For quarters ending June 30, 2009, and each quarter thereafter, a Combined Debt Service Coverage Ratio, after deduction of Assumed Management Fees, of not less than 1.25 to 1.0 for the preceding three (3) month period.
(b) If Borrower fails to achieve or provide evidence of achievement of any required Combined Debt Service Coverage Ratio, Borrower may deposit with Lender, at Borrower’s option within sixty (60) days of such failure, additional cash or other liquid collateral in an amount which, when added to the first number of the Combined Debt Service Coverage Ratio calculation, would have resulted in the noncomplying Combined Debt Service Coverage Ratio requirement having been satisfied. If after Borrower has deposited such additional cash or liquid collateral, Borrower again fails to achieve or provide evidence of the achievement of the Combined Debt Service Coverage Ratio requirements set forth above and such failure continues for two (2) consecutive quarters, Borrower may deposit with Lender, at Borrower’s option within sixty (60) days of such failure, additional cash or other liquid collateral (with credi...
Debt Service Coverage Requirements. (a) is hereby deleted ---------------------------------- in its entirety and replaced with the following:
Debt Service Coverage Requirements. For so long as the Facility Debt ----------------------------------- is outstanding, the Tenant agrees to cause the Facility to achieve, and agrees to provide evidence to Landlord and Lender of the achievement of, the following debt service coverage requirement:
(a) As of March 31, 2004, and for each calendar quarter remaining in the term of the Facility Debt, a Debt Service Coverage Ratio of not less than 1.15 to 1.0, and an Actual Debt Service Coverage Ratio of not less than 1.15 to 1.0, for the immediately preceding three (3) month period.
Debt Service Coverage Requirements. Section 4.14 of the Loan Agreement is hereby deleted in its entirety.