Unencumbered Cash Clause Samples
The 'Unencumbered Cash' clause defines the portion of a party's cash holdings that is free from any liens, pledges, or other security interests. In practice, this clause specifies that only cash not subject to claims by creditors or other third parties can be counted as unencumbered, often for the purposes of meeting financial covenants or calculating liquidity ratios. Its core function is to ensure that only truly available cash is considered when assessing a party's financial health, thereby providing clarity and protecting the interests of counterparties relying on these financial metrics.
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Unencumbered Cash. Parent and the HMI Entities shall, in the aggregate, have cash and cash equivalents (as that term is defined by Company in the preparation of its financial statements) not subject 32 to a Lien to secure indebtedness, other than general Liens covering all or substantially all of the assets of Parent or one or more of the HMI Entities, equal to (A) $5,200,000 reduced by (B) the costs and expenses incurred by the HMI Parties in connection with the transactions provided for in this Agreement, including fees and disbursements of accountants and legal counsel, but not to exceed (for this purpose only) $500,000.
Unencumbered Cash. As to any Person on any relevant date of determination, the aggregate amount of cash of such Person, as reflected on such Person’s balance sheet, which is not subject to any Lien or other claim whatsoever, except for (a) the Lien in favor of the Agent for the benefit of the Agent and the Banks to secure the Obligations under the Loan Documents; and (b) in the case of Anacomp UK, the Permitted Liens set forth on Schedule 9.2 hereto.
Unencumbered Cash. The Restricted Affiliates shall at all times maintain on a consolidated basis at least sixty million dollars ($60,000,000) in unencumbered cash.
Unencumbered Cash. Permit the amount of unencumbered Cash, Cash Equivalents and Long Term Cash Equivalents maintained by Borrower and its Subsidiaries to be less than $200,000,000 at any time.
Unencumbered Cash. At all times following the Eleventh Amendment Effective Date, Credit Parties shall not fail to maintain unrestricted Cash in an aggregate amount of at least $3,000,000 in a deposit account which is subject to a tri-party blocked account agreement and provides Collateral Agent with perfected first-priority Lien on such account and the contents thereof and grants Agent sole dominion and control over such account.”
Unencumbered Cash. The Credit Parties will cause Meridian to maintain at least $10 million of cash that is not subject to any Lien until such time as the Borrower sells the Communications Division or the Meridian Business.