Minimum Equity Condition Clause Samples
The Minimum Equity Condition clause sets a required threshold for the amount of equity that must be maintained or contributed in a transaction or agreement. Typically, this clause ensures that a party—often an investor or borrower—maintains a specified minimum ownership stake or capital level, which may be verified at closing or throughout the term of the agreement. By establishing this baseline, the clause protects the interests of other parties by reducing the risk of undercapitalization and ensuring ongoing financial stability.
Minimum Equity Condition. After giving effect to such Advance the Minimum Equity Condition is satisfied;
Minimum Equity Condition. The Borrower shall, at all times, satisfy the Minimum Equity Condition.
Minimum Equity Condition. The 2021 Incremental Lenders shall have received a certificate signed by a director or similar officer of the Company, certifying that, pro forma for the proposed utilization, the Minimum Equity Condition will be satisfied on the 2021 Initial Incremental Closing Date.