Financial Covenants Section 4 Clause Samples
The Financial Covenants Section 4 establishes specific financial requirements that a party, typically a borrower, must maintain throughout the duration of an agreement. These covenants often include maintaining certain ratios, such as debt-to-equity or interest coverage, and may require regular financial reporting to demonstrate compliance. By setting these standards, the clause helps ensure the financial stability of the obligated party and provides early warning to the other party if financial health deteriorates, thereby managing risk and protecting the interests of lenders or investors.
Financial Covenants Section 4. (a) The Recipient shall:
(i) maintain, or cause to be maintained, records and separate accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments, agencies or entities of the Recipient responsible for carrying out the Project or any part thereof; and
(ii) cause each Beneficiary to maintain records and separate accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures of such Beneficiary in respect of its Sub-project.
(b) The Recipient shall:
(i) have the records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each Fiscal Year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Trustee;
(ii) furnish to the Trustee as soon as available, but in any case not later than six (6) months after the end of each such year, the report of such audit by said auditors, of such scope and in such details as the Trustee shall have reasonably requested; and
(iii) furnish to the Trustee such other information concerning said records and accounts and the audit thereof as the Trustee shall from time to time reasonably request.
(c) For all expenditures with respect to which withdrawals from the OTF Grant Account were made on the basis of statements of expenditure, the Recipient shall:
(i) maintain or cause to be maintained, in accordance with paragraph
(a) of this Section, records and separate accounts reflecting such expenditures;
(ii) retain, until at least one (1) year after the Trustee has received the audit report for the Fiscal Year in which the last withdrawal from the OTF Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;
(iii) enable the Trustee’s representatives to examine such records; and
(iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such Fiscal Year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.
Financial Covenants Section 4. (a) ▇▇▇▇ shall:
(i) maintain records and accounts adequate to reflect, in accordance with sound accounting practices, its operations and financial condition and the resources and expenditures in respect of the Project; and
(ii) maintain separate records and accounts adequate to reflect, in accordance with sound accounting practices, the operations and financial condition of ARF and the resources and expenditures of ARF under the Project.
(b) ▇▇▇▇ shall:
(i) have its records, accounts and financial statements (balance sheets, statements of income and expenses, statements of expenditure and related statements), as well as those for ARF, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association;
(ii) furnish to the Association as soon as available, but in any event not later than three months after the end of each such year, unaudited financial statements for both ▇▇▇▇ and ARF;
(iii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of its financial statements for such year as so audited, and
Financial Covenants Section 4. (a) Henan Province shall:
(i) maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of Parts A and B of the Project of its departments or agencies, the ▇▇▇▇▇ ▇▇▇▇ Factory Preparation Office and the ▇▇▇▇▇ ▇▇▇▇ Factory responsible for carrying out Parts A and B of the Project; and
(ii) cause the ▇▇▇▇▇ ▇▇▇▇ Factory to maintain records and accounts adequate to reflect in accordance with sound accounting practices its operations and financial condition.
(b) Henan Province shall:
(i) have the records and accounts referred to in paragraph (a) of this Section and the ▇▇▇▇▇ ▇▇▇▇ Factory’s financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank;
(ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the ▇▇▇▇▇ ▇▇▇▇ Factory’s financial statements for such year as so audited; and (B) the report of all such audits by said auditors of such scope and in such detail as the Bank shall have reasonably requested; and
(iii) furnish to the Bank such other information concerning said records, accounts and financial statements as well as the audit thereof, as the Bank shall from time to time reasonably request.
Financial Covenants Section 4