Financial Covenant – Adjusted Quick Ratio Sample Clauses
The Financial Covenant — Adjusted Quick Ratio clause sets a minimum threshold for a borrower's liquidity by requiring that the ratio of its most liquid assets to its current liabilities, adjusted for certain items, remains above a specified level. In practice, this clause typically mandates that the borrower regularly calculate and report its adjusted quick ratio, which may exclude inventory or other less liquid assets, to demonstrate ongoing financial health. Its core function is to protect lenders by ensuring the borrower maintains sufficient short-term resources to meet immediate obligations, thereby reducing the risk of default.
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Financial Covenant – Adjusted Quick Ratio. Maintain at all times, to be tested as of the last day of each month, an Adjusted Quick Ratio, as calculated on a consolidated basis with respect to Parent and its Subsidiaries (and the Subsidiaries of such Subsidiaries, and so on), of at least 1.50 to 1.0.
Financial Covenant – Adjusted Quick Ratio. Borrower shall have at all times, to be tested as of the last day of each month, an Adjusted Quick Ratio of at least 1.25.
Financial Covenant – Adjusted Quick Ratio. Maintain at all times, to be tested as of the last day of each month, an Adjusted Quick Ratio of greater than the Required Covenant Ratio.
Financial Covenant – Adjusted Quick Ratio. Maintain at all times, to be tested as of the last day of each quarter, an Adjusted Quick Ratio of at least (a) 1.0 to 1.0 for the quarter ending ▇▇▇▇▇ ▇▇, ▇▇▇▇, (▇) 0.75 to 1.0 for the quarters ending July 31, 2010 and October 31, 2010, and (c) 1.25 to 1.0 for the quarter ending January 31, 2010, and as of the last day of each quarter thereafter.
Financial Covenant – Adjusted Quick Ratio. Maintain at all times an Adjusted Quick Ratio of at least 1.10 to 1.0.
Financial Covenant – Adjusted Quick Ratio. Borrower shall maintain at all times, to be tested as of the last day of each month, on a consolidated basis with respect to Borrower and its Subsidiaries an Adjusted Quick Ratio of at least 1.25 to 1.0. Notwithstanding the foregoing, with respect to the first and second months in any calendar quarter, Borrower shall not be required to comply with the financial covenant set forth in this Section 6.7 for any such month to the extent that no Advance was outstanding or requested (i) during such month and (ii) after such month up to and including the date on which Bank receives the applicable financial reporting evidencing Borrower’s Adjusted Quick Ratio for such calendar quarter.” 4 The Loan Agreement shall be amended by deleting the following definition, appearing in Section 13.1 thereof:
Financial Covenant – Adjusted Quick Ratio. Maintain at all times, to be tested as of the last day of each month, an Adjusted Quick Ratio of at least (a) up to and including the day prior to the Third LMA Effective Date, 1.50 to 1.0 and (b) as of the Third LMA Effective Date and thereafter, 1.25 to 1.0. Notwithstanding the foregoing, commencing on the Third LMA Effective Date until the date on which Borrower requests an Advance hereunder (other than the Excepted Advance), Borrower shall not be required to be in compliance with this Section 6.7, provided, however, Borrower shall be required to be in compliance with this Section 6.7 as of the time that an Advance (other than the Excepted Advance) is requested and at all times thereafter." 11 The Loan Agreement shall be amended by deleting the following text, appearing in Section 10 thereof: "If to Bank: Silicon Valley Bank 5▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Attn: Mr. M▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Fax: (▇▇▇) ▇▇▇-▇▇▇▇ and inserting in lieu thereof the following: "If to Bank: Silicon Valley Bank 5▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Attn: Mr. M▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Fax: (▇▇▇) ▇▇▇-▇▇▇▇ 12 The Loan Agreement shall be amended by inserting the following new definitions appearing alphabetically in Section 13.1 thereof: " "Excepted Advance" is the first (1st) Advance made on or after the Third LMA Effective Date in an amount not to exceed Three Million Four Hundred Thousand Dollars ($3,400,000.00), which Advance is supported by a Financed Receivable that is due and owing from Associated Wholesale Grocers."
Financial Covenant – Adjusted Quick Ratio. Maintain at all times upon the occurrence of the Testing Event, to be tested as of the last day of each calendar quarter, an Adjusted Quick Ratio of at least 1.25 to 1.00.
Financial Covenant – Adjusted Quick Ratio. As of January 15, 2013, and at all times thereafter, maintain at all times an Adjusted Quick Ratio of at least 1.25 to 1.0, to be tested (i) on January 15, 2013, and (ii) as of the last day of each month, commencing with the month ending January 31, 2013.
Financial Covenant – Adjusted Quick Ratio. Borrower shall maintain at all times, to be tested as of the last day of each month, an Adjusted Quick Ratio of at least 1.0 to 1.0.