DSCR Covenant Sample Clauses

DSCR Covenant. (a) For each Calculation Period, commencing on the first Calculation Date, the Debt Service Coverage as of each Calculation Date shall be not less than 1.30:1, to be evidenced by the income and expenses as reported within Borrower’s certified profit and loss statement for the applicable Calculation Period.
AutoNDA by SimpleDocs
DSCR Covenant. At all times during the term of the Loan, Mortgagor shall maintain a minimum debt service coverage ratio (“DSCR”) of 1.25 to 1.00. Mortgagor shall certify compliance with a 1.25 to 1.00 In-Place DSCR commencing with the calendar year ending December 31, 2020 and annually as of December 31 of each year. “In-Place DSCR” means the ratio of (X) the trailing actual 12-month net operating income of the Property, to (Y) actual debt service, including interest and, if applicable, principal payable during the DSCR test period. Net Operating Income will be adjusted to include (i) a vacancy factor equal to the greater of (x) 3% or (y) the actual vacancy percentage; (ii) management fees equal to 2%; and (iii) rental payment for the month of January, 2020 to be included in the initial test. For future renewals or new leases, any free rent period will not be included in the initial DSCR testing period as long as the free rent period is not greater than six (6) months and the term of the lease is not less than five (5) years.
DSCR Covenant. Borrower fails to make any required prepayment of the Loan in a timely manner in accordance with the terms of Schedule 3 attached hereto.
DSCR Covenant. Borrower fails to make the DSCR Covenant Cure Deposit or pay down the Loans within the time period set forth in Section 9.10 of this Agreement.
DSCR Covenant. At all times during the term of the Loan, Mortgagor shall maintain a minimum debt service coverage ratio (“DSCR”) of 1.25 to 1.00. Mortgagor shall certify compliance with a 1.25 to 1.00 In-Place DSCR commencing with the date the Borrower acquired the Real Property through December 31, 2020 and annually as of December 31 of each year thereafter. “In-Place DSCR” following Closing means the ratio of (X) the trailing actual 12-month net operating income of the Property, to (Y) actual debt service, including interest and principal payable during the DSCR test period. Net Operating Income will be adjusted to include (i) a vacancy factor equal to the greater of (x) 3% or (y) the actual vacancy percentage; and (ii) management fees equal to 2% For future renewals or new leases, any free rent period will not be included in the initial DSCR testing period as long as the free rent period is not greater than six (6) months and the term of the lease is not less than five (5) years. Should the DSCR not be maintained for any testing period, Mortgagor shall have the option to pay down the Loan or provide a letter of credit in form and substance acceptable to Mortgagee, to achieve this requirement within ninety (90) days following Mortgagee’s determination that the minimum DSCR has not been maintained.

Related to DSCR Covenant

Time is Money Join Law Insider Premium to draft better contracts faster.