Purchase and Maintenance of Interest Rate Cap Sample Clauses

Purchase and Maintenance of Interest Rate Cap. The Borrower hereby covenants and agrees to hedge the variable interest expense of the Loan at all times during the term of the Loan by the purchase and maintenance of (i) an Interest Rate Cap (hereinafter referred to as the “Initial Interest Rate Cap”) (a) with a strike price of six percent (6.00%) or such other strike price as may be agreed to in writing by the Administrative Agent, in its sole and absolute discretion,, (b) with a term that runs through December 1, 2026, and (c) which otherwise satisfies the other Minimum Rate Cap Requirements and (ii) an Interest Rate Cap (hereinafter referred to as the “Subsequent Interest Rate Cap”) which satisfies the following requirements: (a) the strike price is commensurate to the then current interest rate and the Lenders’ required protections with respect thereto; (b) term runs from the date immediately following the last day of the term of the Initial Interest Rate Cap and continues through the last day of the term of the Loan; and (c) satisfies the other Minimum Rate Cap Requirements. The Borrower hereby represents and warrants to the Administrative Agent that the Initial Interest Rate Cap has been purchased as of the Closing Date. The Borrower hereby covenants and agrees with the Administrative Agent that the Subsequent Interest Rate Cap shall be purchased by the Borrower no later than December 1, 2026. In addition to the foregoing, the Borrower hereby confirms and agrees that the rights and interests of the Borrower in and to the Initial Interest Rate Cap have been assigned to the Administrative Agent, for the benefit of the Lenders, pursuant to the terms, conditions, and provisions of the Assignment of Interest Rate Cap Agreement, and that the rights and interests of the Borrower in and to the Subsequent Interest Rate Cap shall be assigned to the Administrative Agent, for the benefit of the Lenders, as additional collateral security for the Loan, pursuant to the terms, conditions, and provisions of the Assignment of Interest Rate Cap Agreement.
Sample 1
Purchase and Maintenance of Interest Rate Cap. Within sixty (60) days after the date hereof, Borrower will deliver to Lender a fully executed interest rate cap agreement, in form and substance and with such financial institution having a claims paying ability by the Rating Agencies of "A" or higher and shall be otherwise acceptable to Lender in its reasonable discretion, in a notational amount equal to the Loan Amount, insuring against the risk that LIBOR shall at any time during the term of the Loan exceed a per annum rate of eight and one half percent (8.50%) (the "Interest Rate Cap Agreement"). Borrower shall maintain the Interest Rate Cap Agreement, or such supplement or replacement thereto as is approved by Lender in its reasonable discretion, throughout the entire term of the Loan, and Borrower shall not materially amend, modify or terminate the Interest Rate Cap Agreement without the prior written consent of Lender.
Sample 1

Related to Purchase and Maintenance of Interest Rate Cap

  • USE AND MAINTENANCE (a) Lessee shall: (1) use the Equipment solely in the Continental United States and in the conduct of its business, consistent with Lessee's past practice, and shall not permanently discontinue use of the Equipment; (2) operate, maintain, service and repair the Equipment, and maintain all records and other materials relating thereto, (i) in accordance and consistent with (A) the Supplier's recommendations and all maintenance and operating manuals or service agreements, whenever furnished or entered into, including any subsequent amendments or replacements thereof, consistent with Lessee's past practice, (B) the requirements of all applicable insurance policies, (C) all applicable laws, and (D) the prudent practice of other similar companies in the same business as Lessee, but in any event, to no lesser standard than that employed by Lessee for comparable equipment owned or leased by it; and (ii) without limiting the foregoing, so as to cause the Equipment to be in good repair and operating condition and in at least the same condition as when delivered to Lessee hereunder, except for ordinary wear and tear; (3) not change the location of any Equipment as specified in the Equipment Schedule without prior written notice to Lessor; (4) not attach or incorporate the Equipment to or in any other item of equipment in such a manner that the Equipment may be deemed to have become an accession to or a part of such other item of equipment; and (5) cause each principal item of the Equipment to be continually marked, in a plain and distinct manner, with the name of Lessor followed by the words "Owner and Lessor," or other appropriate words designated by Lessor on labels furnished by Lessor. (b) Within a reasonable time, Lessee will replace any parts of the Equipment which become worn out, lost, destroyed, damaged beyond repair or otherwise permanently rendered unfit for use, by new or reconditioned replacement parts which are free and clear of all liens, encumbrances or rights of others and have a value, utility and remaining useful life at least equal to the parts replaced. Title to all replacement parts and permanent improvements, or attachments to the Equipment which cannot be removed without damaging the Equipment, immediately shall vest in Lessor, without cost or expense to Lessor or any further action by any other person, and such parts, improvements and additions shall be deemed incorporated in the Equipment and subject to the terms of this Lease as if originally leased hereunder, if such parts are essential to the operation of the Equipment or cannot be detached from the Equipment without materially interfering with the operation of the Equipment or adversely affecting the value, utility and remaining useful life which the Equipment would have had without the addition thereof. Lessee shall not make any material alterations to the Equipment without prior written notice to Lessor, provided that such material alterations do not adversely affect the value, utility and remaining useful life which the Equipment would have had without the addition thereof. (c) Upon forty-eight (48) hours' notice, Lessee shall afford Lessor access to the premises where the Equipment is located for the purpose of inspecting such Equipment and all applicable maintenance or other records at any reasonable time during normal business hours; provided, however, if a default or Default shall have occurred and then be continuing, no notice of any inspection by Lessor shall be required.