Preservation Capital Sample Clauses

The Preservation Capital clause defines the portion of capital that must be maintained and not distributed or depleted during the term of an agreement or investment. Typically, this clause specifies a minimum capital threshold that must remain intact, ensuring that sufficient funds are available to meet ongoing obligations or regulatory requirements. By mandating the retention of a certain amount of capital, the clause helps protect the financial stability of the entity and safeguards the interests of stakeholders by preventing premature or excessive distributions.
Preservation Capital. If, at any time after the Partners have contributed all of the Capital Contributions required pursuant to Section 3.2.2 hereof, either DCT LLC or any Partner reasonably and in good faith determines (after taking into account any existing cash reserves of the Partnership) that the Partnership requires additional capital to fund the payment of debt service obligations (if approved as set forth below), real estate taxes, utility costs, insurance premiums, and/or other costs and expenses reasonably necessary to protect and preserve the value of the Property or the safekeeping, health and welfare of occupants or invitees thereof (all such costs, collectively “Preservation Costs”), such Partner shall have the right to issue a Funding Notice to the Partners setting forth the amount needed to pay such Preservation Costs and each Partner’s respective share of such Preservation Costs to be funded. Within five (5) Business Days after receipt of such notice or such longer time as the Funding Notice may permit, each such Partner shall have the option, but not the obligation, of advancing to the Partnership such Partner’s respective share of the Preservation Costs on the terms set forth in the Funding Notice. If all Partners elect to make such Capital Contributions, such Capital Contributions shall constitute additional Capital Contributions to the Partnership by such Partners. If any Partner fails to make such Capital Contribution under this Section, then the non-failing Partner shall elect either (a) to receive the return of any unmatched funds paid to the Partnership under this Section with interest computed at a rate equal to the lower of 12% per annum or the highest rate per annum as may be permitted pursuant to applicable law, and/or (b) to convert any unmatched funds paid to the Partnership under this Section to a loan to the Partnership and in addition, such Partner shall have the right to make an additional loan to the Partnership in the amount that the failing Partner failed to contribute and/or (c) the non-failing Partner may structure a loan or contribution with such terms as may be required to ensure that no direct or indirect investor in such Partner that is a real estate investment trust under the Code (the “Investor REIT”) will be treated as holding a security described in Code Section 856(c)(4)(B)(iii)(III), including by structuring any such loan so that it complies with the requirements of Revenue Procedure 2003-65, I.R.B. 2003-32, and/or may transfer ...
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Related to Preservation Capital

  • Preservation Fail to use reasonable efforts to preserve intact in any material respect their business organizations and assets and maintain their rights, franchises and existing relations with customers, suppliers, employees and business associates.

  • Preservation of Business From the date of this Agreement until the Closing Date, the Company and the Parent shall operate only in the ordinary and usual course of business consistent with their respective past practices (provided, however, that Parent shall not issue any securities without the prior written consent of the Company), and shall use reasonable commercial efforts to (a) preserve intact their respective business organizations, (b) preserve the good will and advantageous relationships with customers, suppliers, independent contractors, employees and other persons material to the operation of their respective businesses, and (c) not permit any action or omission that would cause any of their respective representations or warranties contained herein to become inaccurate or any of their respective covenants to be breached in any material respect.

  • Preservation of Collateral Following the occurrence of a Default or Event of Default, in addition to the rights and remedies set forth in Section 11.1 hereof, Agent: (a) may at any time take such steps as Agent deems necessary to protect Agent’s interest in and to preserve the Collateral, including the hiring of such security guards or the placing of other security protection measures as Agent may deem appropriate; (b) may employ and maintain at any of any Borrower’s premises a custodian who shall have full authority to do all acts necessary to protect Agent’s interests in the Collateral; (c) may lease warehouse facilities to which Agent may move all or part of the Collateral; (d) may use any Borrower’s owned or leased lifts, hoists, trucks and other facilities or equipment for handling or removing the Collateral; and (e) shall have, and is hereby granted, a right of ingress and egress to the places where the Collateral is located, and may proceed over and through any of Borrowers’ owned or leased property. Each Borrower shall cooperate fully with all of Agent’s efforts to preserve the Collateral and will take such actions to preserve the Collateral as Agent may direct. All of Agent’s expenses of preserving the Collateral, including any expenses relating to the bonding of a custodian, shall be charged to Borrowers’ Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations.

  • Enforcement and preservation costs The Borrower shall, within three Business Days of demand, pay to each Administrative Party and each other Secured Party the amount of all out-of-pocket costs and expenses (including legal fees) incurred by it in connection with the enforcement of or the preservation of any rights under any Finance Document and the Transaction Security and any proceedings instituted by or against the Security Agent or the U.S. Collateral Agent as a consequence of taking or holding the Transaction Security or enforcing these rights.

  • Historic Preservation Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR 800, Protection of Historic Properties, insofar as they apply to the performance of this Contract. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list.