Required Reserve Account Amount Clause Samples
The Required Reserve Account Amount clause defines the minimum balance that must be maintained in a designated reserve account, typically as a condition of a financial agreement or loan. This clause specifies how the required amount is calculated, such as a fixed sum or a percentage of outstanding obligations, and may outline when and how the reserve must be replenished if it falls below the threshold. Its core function is to ensure that sufficient funds are always available to cover potential liabilities or obligations, thereby reducing credit risk and providing financial security for the parties involved.
Required Reserve Account Amount. Required Reserve Account Amount (1.00% of Initial Pool Balance) $
Required Reserve Account Amount. Lesser of: (a or b) a. $0.00 $
Required Reserve Account Amount. On any date of determination on and after the date of initial Loan, the greater of (i) Reserve Account Deposit Amount and (ii) 1% multiplied by the Net Receivables Balance.