Maximum Variable Rate Indebtedness Clause Samples
The Maximum Variable Rate Indebtedness clause sets a cap on the total amount of debt a borrower can incur that is subject to variable interest rates. In practice, this clause limits the borrower's exposure to interest rate fluctuations by restricting the aggregate principal amount of loans or credit facilities with rates that can change over time. By imposing this ceiling, the clause helps manage the lender's risk and ensures the borrower's debt service obligations remain predictable, thereby protecting both parties from excessive financial volatility.
Maximum Variable Rate Indebtedness. Permit the Indebtedness of the Consolidated Parties (other than any Indebtedness under this Agreement) that accrues interest at a variable rate that is not subject to a “cap,” “collar,” “swap” or other similar arrangement to, at any time, exceed 25% of Consolidated Funded Indebtedness.
Maximum Variable Rate Indebtedness. Permit Total Variable Rate Indebtedness at any time to exceed 25% of Total Asset Value at such time.
Maximum Variable Rate Indebtedness. Permit the aggregate amount of Consolidated Total Indebtedness (other than Indebtedness hereunder) that accrues interest at a variable rate as of the last day of each fiscal quarter to exceed twenty-five percent (25%) of Consolidated Total Asset Value at such time; provided that for purposes of this covenant, Indebtedness that is effectively subject to a fixed or maximum interest rate by virtue of interest rate protection agreements will not be deemed to accrue interest at a variable rate.
Maximum Variable Rate Indebtedness. Permit the Indebtedness of the Consolidated Group that accrues interest at a variable rate to be greater than thirty percent (30%) of Total Asset Value.
Maximum Variable Rate Indebtedness. The Borrower and Parent shall not permit variable rate Indebtedness of the Parent and its Subsidiaries to exceed 35% of Total Gross Asset Value.
Maximum Variable Rate Indebtedness. More than thirty percent (30%) of Total Asset Value (with respect to which only the principal outstanding on the date of calculation shall be included) to accrue interest at a variable rate (exclusive of any variable rate interest obligation that is the subject of a Swap Contract).