Past Due Roll Rate Clause Samples
The Past Due Roll Rate clause defines how the percentage of accounts or payments that move from being current to past due is measured and reported. In practice, this clause typically outlines the calculation method for determining the rate at which obligations become overdue within a specified period, often using aging buckets such as 30, 60, or 90 days past due. By establishing a clear metric for monitoring delinquency trends, the clause helps parties assess credit risk and take timely action to manage or mitigate potential defaults.
Past Due Roll Rate. The Credit Parties shall not permit the Trailing Past Due Roll Rate, calculated as of the last day of any calendar month (commencing with the calendar month of February 2019) to be greater than twelve and one-half percent (12.5%).