Cash Trap Condition definition

Cash Trap Condition has the meaning set forth in Section 6.5.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedBook a Demo

Cash Trap Condition means, as of the end of any calendar quarter (i) an Amortization Period is not then continuing and (ii) the DSCR is less than or equal to the Cash Trap DSCR, and will continue to exist until the DSCR exceeds the Cash Trap DSCR for two consecutive calendar quarters or until an Amortization Period commences.

Cash Trap Condition as defined in the Tower Notes Indenture.

Examples of Cash Trap Condition in a sentence

• So long as no Event of Default exists, a Cash Trap Condition occurring due to a Debt Service Coverage Ratio of less than the Minimum DSCR Threshold shall be deemed cured if the Properties achieve a Debt Service Coverage Ratio of not less than the Minimum DSCR Ratio for two consecutive Calendar Quarters after the occurrence of the Cash Trap Condition, measured at the end of each such two consecutive Calendar Quarters (each a “Cash Trap Cure”).

• Prior to the occurrence of a Cash Trap Condition, Borrower shall be permitted pursuant to the Clearing Account Agreement to access and direct the withdrawal and disposition of funds in the Clearing Account.

• From and after a Cash Trap Cure and until the occurrence of a subsequent Cash Trap Condition, if any, Lender shall direct the Deposit Account Bank to disburse any balance in the Supplemental Debt Reserve Sub-Account to Borrower.

• In the event that either a Cash Trap Condition or an Event of Default exists, the Operating Budget shall be subject to Lender’s reasonable approval, and upon such approval shall, with any amendments thereto approved by Lender from time to time, constitute the “Approved Operating Budget” hereunder.

• Borrower shall provide a proposed Approved Operating Budget to Lender for the then-remaining calendar year within five (5) Business Days after the occurrence of a Cash Trap Condition, and thereafter while a Cash Trap Condition exists shall provide a proposed Approved Operating Budget to Lender for each succeeding calendar year at least thirty (30) days prior to the end of each calendar year.

More Definitions of Cash Trap Condition

Cash Trap Condition shall exist at such time as Lender determines that as of last day of any calendar quarter ending prior to an Anticipated Repayment Date, the Debt Service Coverage Ratio is equal to or less than the Cash Trap DSCR, and shall continue to exist until Lender determines that the Debt Service Coverage Ratio exceeds the Cash Trap DSCR for two (2) consecutive calendar quarters. Upon the commencement of an Amortization Period, Lender will apply any amounts in the Cash Trap Reserve on the next Due Date in accordance with the terms and conditions of the Trust Agreement, in the manner provided in Section 3.3(a) of the Cash Management Agreement for Available Funds. Any funds on deposit in the Cash Trap Reserve shall continue to be held as additional Collateral in accordance with this Section 6.5. Provided that no Event of Default exists and Lender determines that the Cash Trap DSCR test has been satisfied for two (2) consecutive calendar quarters (as determined above), any funds remaining in the Cash Trap Reserve shall be released to the Borrowers. The existence of a Cash Trap Condition shall be a reasonable determination made by Lender in good faith.

Cash Trap Condition means, as of the end of any calendar quarter (i) the DSCR is less than or equal to 1.75x Cash Trap DSCR, and will continue to exist until the DSCR exceeds the 1.75x Cash Trap DSCR for two consecutive calendar quarters or (ii) the Consolidated DSCR is less than or equal to the 2.0x Cash Trap DSCR, and will continue to exist until the Consolidated DSCR exceeds the 2.0x Cash Trap DSCR for two consecutive calendar quarters; provided, that with Rating Agency Confirmation, the Consolidated DSCR test will be inapplicable to the determination of a Cash Trap Condition. Upon the determination a Cash Trap Condition exists, the Indenture Trustee or Servicer may (but shall not be obligated to) appoint a Valuation Expert at the expense of the Issuers to determine the Enterprise Value.

Cash Trap Condition has the meaning assigned thereto in the Loan Agreement.

Cash Trap Condition shall exist (1) upon the occurrence of an Event of Default, or (2) in the event a Debt Service Coverage Ratio, as measured by Lender as of the end of any Calendar Quarter based upon Adjusted Net Cash Flow for the twelve (12) month period ended as of the end of such Calendar Quarter, is less than the Minimum DSCR Threshold; provided, that in the event of a failure of the Borrowers to deliver the certification and documentation required under Section 5.1(A)(iv) by the required delivery date hereunder, at Lender’s option the Debt Service Coverage Ratio will be presumed to be less than the Minimum DSCR Threshold unless and until such certification and documentation are provided to Lender and demonstrate that the Debt Service Coverage Ratio is at least equal to the Minimum DSCR Threshold.

Cash Trap Condition means a condition that exists as of any Determination Date if the average of the Senior DSCR as of such Determination Date and the Senior DSCR as of the last two preceding Determination Dates is less than or equal to the Cash Trap DSCR, and will continue to exist until either (i) the Senior DSCR as of any Determination Date is greater than the Cash Trap DSCR or (ii) a Cash Sweep Condition occurs; provided, that if, on any Determination Date on which a Cash Sweep Condition that has previously occurred ends, any of the conditions in this definition exist, then a new Cash Trap Condition will exist as of such Determination Date.

Cash Trap Condition means, as of the end of any calendar quarter, the DSCR is less than or equal to 1.30, and shall continue to exist until the DSCR exceeds 1.30 for two consecutive calendar quarters.

Cash Trap Condition shall exist as of the end of any calendar month if the DSCR as of the last day of such month is less than or equal to the Cash Trap DSCR, and will continue to exist until the DSCR has exceeded the Cash Trap DSCR for two consecutive months.