Leverage Limitations Sample Clauses
The Leverage Limitations clause sets boundaries on the amount of debt or financial leverage a party can incur under an agreement. Typically, it restricts the borrower from exceeding a specified debt-to-equity ratio or from taking on additional loans beyond a certain threshold. This clause is commonly used in loan agreements or investment contracts to protect lenders or investors by ensuring the borrower maintains a manageable level of financial risk, thereby reducing the likelihood of default and preserving the overall financial stability of the arrangement.
Leverage Limitations. After giving effect to the proposed Borrowing or Letter of Credit issuance, each of the Borrowers shall be in compliance with the leverage limitations set forth in its Constituent Documents or as otherwise agreed between the parties to such Borrowing or Letter of Credit issuance if no leverage limitations are contemplated by the Constituent Documents.
Leverage Limitations. Giving pro forma effect to the outstanding Obligations (including the requested Loan or Letter of Credit) in the numerator thereof, the Senior Funded Debt to EBITDA Ratio and the Total Funded Debt to EBITDA Ratio (determined on the basis of Adjusted Company EBITDA for the most recent twelve month fiscal period for which financial information is then required to have been delivered to the Lenders) shall not be in excess of the applicable limits therefor set forth in Section 7.1 and 7.2, respectively.