{"component": "clause", "props": {"groups": [{"samples": [{"hash": "fnwQaJCPCVq", "uri": "/contracts/fnwQaJCPCVq#default-ratio", "label": "Loan Agreement (Arvinmeritor Inc)", "score": 21.0, "published": true}, {"hash": "jYxpJV51au9", "uri": "/contracts/jYxpJV51au9#default-ratio", "label": "Loan Agreement (Us Xpress Enterprises Inc)", "score": 19.0, "published": true}, {"hash": "bmcaC21A5hg", "uri": "/contracts/bmcaC21A5hg#default-ratio", "label": "Loan Agreement (Arvinmeritor Inc)", "score": 19.0, "published": true}], "snippet": "The Default Ratio shall equal or exceed 3.5% on a rolling three-month average basis.", "size": 16, "snippet_links": [], "hash": "a8d0509286c0c11dd457bde425e70930", "id": 1}, {"samples": [{"hash": "llCRgocqOw3", "uri": "/contracts/llCRgocqOw3#default-ratio", "label": "Credit and Security Agreement (Allied Waste Industries Inc)", "score": 21.0, "published": true}, {"hash": "k8uJjicbYdx", "uri": "/contracts/k8uJjicbYdx#default-ratio", "label": "Credit and 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"/contracts/8msaWCzB5dt#default-ratio", "label": "Loan Agreement (G&k Services Inc)", "score": 18.0, "published": true}], "snippet": "The Default Ratio shall equal or exceed 1.20% on a rolling three-fiscal-month average basis.", "size": 3, "snippet_links": [], "hash": "98d8f39e82d12628a9641fe099c79402", "id": 4}, {"samples": [{"hash": "ikabdvsaAno", "uri": "/contracts/ikabdvsaAno#default-ratio", "label": "Receivables Purchase and Servicing Agreement (Advancepcs)", "score": 18.0, "published": true}, {"hash": "To4lND8EWs", "uri": "/contracts/To4lND8EWs#default-ratio", "label": "Receivables Purchase and Contribution Agreement (Advancepcs)", "score": 18.0, "published": true}], "snippet": "As of any date of determination, the ratio (expressed as a percentage) of:", "size": 2, "snippet_links": [{"key": "date-of-determination", "type": "clause", "offset": [10, 31]}, {"key": "a-percentage", "type": "definition", "offset": [57, 69]}], "hash": "c3b1bdb611cd3a30b4e83000df1efa4e", "id": 5}, 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Ratio........................................................................51 10.2.6 Delinquency Ratio.....................................................................51 10.2.7 Event of Default......................................................................51 10.2.8 Validity of Transaction Documents.....................................................51 10.2.9 Termination Date......................................................................51 10.2.10 Performance Undertaking...............................................................51 10.2.11", "size": 2, "snippet_links": [{"key": "dilution-ratio", "type": "definition", "offset": [10, 24]}, {"key": "delinquency-ratio", "type": "clause", "offset": [106, 123]}, {"key": "event-of-default", "type": "definition", "offset": [202, 218]}, {"key": "validity-of-transaction-documents", "type": "clause", "offset": [298, 331]}, {"key": "termination-date", "type": "definition", "offset": [394, 410]}, {"key": "performance-undertaking", "type": "definition", "offset": [491, 514]}], "hash": "6b9ad318133b352335e0e0bdeb021cd7", "id": 7}, {"samples": [{"hash": "dBem2phFID0", "uri": "/contracts/dBem2phFID0#default-ratio", "label": "Receivables Purchase Agreement (Thomas & Betts Corp)", "score": 18.0, "published": true}], "snippet": "As of any Cut-Off Date, the ratio (expressed as a percentage) computed by dividing (i) the total amount of Receivables which became Defaulted Receivables during the Collection Period that includes such Cut-Off Date, by (ii) the aggregate Sales generated by the Originators during the Collection Period occurring six Collection Periods prior to the Collection Period ending on such Cut-Off Date.", "size": 1, "snippet_links": [{"key": "a-percentage", "type": "definition", "offset": [48, 60]}, {"key": "amount-of-receivables", "type": "clause", "offset": [97, 118]}, {"key": "defaulted-receivables", "type": "definition", "offset": [132, 153]}, {"key": "aggregate-sales", "type": "definition", "offset": [228, 243]}, {"key": "collection-periods", "type": "definition", "offset": [316, 334]}, {"key": "prior-to-the", "type": "clause", "offset": [335, 347]}, {"key": "period-ending", "type": "definition", "offset": [359, 372]}], "hash": "42860b4eed6f8c6aef50d57b1d897774", "id": 8}, {"samples": [{"hash": "fMc61mjqFzY", "uri": "/contracts/fMc61mjqFzY#default-ratio", "label": "Second Amendment and Joinder Agreement (Covanta Holding Corp)", "score": 32.1348381042, "published": true}], "snippet": "The definition of \"Default Ratio\" is hereby deleted in its entirety and replaced with the following:", "size": 1, "snippet_links": [{"key": "the-definition-of", "type": "clause", "offset": [0, 17]}, {"key": "replaced-with", "type": "clause", "offset": [72, 85]}], "hash": "1f7e68449e7304c95e8af8f7ef8a2f9d", "id": 9}, {"samples": [{"hash": "8I7qmtn0rmc", "uri": "/contracts/8I7qmtn0rmc#default-ratio", "label": "Loan Agreement (Jarden Corp)", "score": 21.0, "published": true}], "snippet": "The Default Ratio shall equal or exceed 4.50% on a rolling three-month average basis for any three-month period ending in January-July, or 3.30% on a rolling three-month average basis for any three-month period ending in August-December.", "size": 1, "snippet_links": [{"key": "period-ending", "type": "definition", "offset": [105, 118]}], "hash": "d3162afbacdf0d621d31b0afde4314a6", "id": 10}], "next_curs": "ClYSUGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjILEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhZkZWZhdWx0LXJhdGlvIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"children": [["dilution-reserve", "Dilution Reserve"], ["discount-reserve", "Discount Reserve"]], "parents": [["amortization-events", "Amortization Events"], ["significant-events-and-their-effect", "Significant Events and Their Effect"], ["negative-covenants", "Negative Covenants"], ["other-agreements-performance-undertaking", "Other Agreements; Performance Undertaking"], ["business-restrictions", "Business Restrictions"]], "size": 45, "title": "Default Ratio", "id": "default-ratio", "related": [["default-rate", "Default Rate", "Default Rate"], ["debt-coverage-ratio", "Debt Coverage Ratio", "Debt Coverage Ratio"], ["interest-coverage-ratio", "Interest Coverage Ratio", "Interest Coverage Ratio"], ["late-fee-default-rate", "Late Fee; Default Rate", "Late Fee; Default Rate"], ["minimum-interest-coverage-ratio", "Minimum Interest Coverage Ratio", "Minimum Interest Coverage Ratio"]], "related_snippets": [], "updated": "2025-12-01T05:47:14+00:00", "also_ask": [], "drafting_tip": null, "explanation": "The Default Ratio clause defines a specific threshold or percentage that measures the frequency or amount of defaults, typically in the context of financial agreements or loan portfolios. It operates by setting a benchmark\u2014such as a certain percentage of loans in default\u2014beyond which certain contractual consequences may be triggered, like increased reporting requirements or the right to terminate the agreement. This clause serves to monitor and manage risk by providing a clear metric for when defaults become significant enough to warrant action, thereby protecting parties from excessive exposure to credit risk."}, "json": true, "cursor": ""}}