Unrestricted Cash Threshold Sample Clauses

The Unrestricted Cash Threshold clause sets a minimum amount of cash or cash equivalents that a party, typically a borrower, must maintain at all times. This threshold is usually defined in financial agreements to ensure the borrower retains sufficient liquidity, and it may be measured on a daily or periodic basis, often excluding restricted or encumbered funds. By establishing this requirement, the clause helps protect lenders by reducing the risk of default due to insufficient cash reserves, thereby ensuring ongoing financial stability and operational continuity.