Minimum Loan Coverage Ratio Sample Clauses
The Minimum Loan Coverage Ratio clause sets a required threshold for the ratio between the value of collateral and the outstanding loan amount. In practice, this means that borrowers must maintain collateral—such as real estate or other assets—at or above a specified percentage of the loan balance throughout the loan term. This clause ensures that lenders are protected against the risk of insufficient collateral in case of borrower default, thereby reducing potential losses and maintaining the financial security of the lending arrangement.
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Minimum Loan Coverage Ratio. So long as any Obligations remain outstanding, Borrower shall maintain a Loan Coverage Ratio of at least 2.50:1.00 measured quarterly as of the last day of each quarter.
Minimum Loan Coverage Ratio. At all times during the term of this Agreement, Borrower shall maintain the Minimum Loan Coverage Ratio. If at any time Borrower shall fail to maintain the Minimum Loan Coverage Ratio, Borrower shall, within thirty (30) days after receipt of notice from Administrative Agent, (a) repay the Loan in an amount sufficient to comply with the Minimum Loan Coverage Ratio, or (b) provide evidence satisfactory to Administrative Agent in its sole discretion, that Qualified Purchase Contracts are in place to provide Net Sales Proceeds sufficient to meet the Minimum Loan Coverage Ratio.