Cash Trap Event definition
Cash Trap Event has the meaning set forth in Section 6.8.
Cash Trap Event shall occur as of any Calculation Date when the Debt Yield is less than the Minimum Debt Yield for the trailing twelve (12) month period ending on such Calculation Date and shall continue to exist until such time as the Minimum Debt Yield test has been satisfied for three (3) consecutive Calculation Dates (on a trailing twelve (12) month basis) following the commencement of the applicable Cash Trap Event. Notwithstanding that the Debt Yield is less than the Minimum Debt Yield as of any Calculation Date, no Cash Trap Event shall be deemed to have occurred as a result of such event if the Borrowers make a principal prepayment of the Aggregate Outstanding Principal Balance (which prepayment amount shall be disbursed on the next Payment Date in accordance with the terms of the Cash Management Agreement), within three (3) Business Days after the date of delivery of the financial statements disclosing the existence of such Cash Trap Event (or the date on which such financial statements are required to be delivered pursuant to Section 5.1), in an amount equal to the greater of (x) one percent (1%) of the Aggregate Outstanding Principal Balance, or (y) 120% of the amount, as determined by Lender in its reasonable discretion, sufficient to cause the Debt Yield to meet or exceed the Minimum Debt Yield if such calculation was recalculated as provided above assuming that such amount was applied to reduce the Aggregate Outstanding Principal Balance as of the first day of the relevant measuring period. During the continuance of a Cash Trap Event, provided that no Event of Default shall have occurred and be continuing, any funds on deposit in the Cash Trap Reserve may, at the Borrowers' election, be retained in the Cash Trap Reserve or may be applied to (i) prepayment of the Aggregate Outstanding Principal Balance as provided above, (ii) Capital Expenditures reasonably approved by Lender, or (iii) scheduled payments (not to exceed $525,000 in the aggregate) of principal and interest under the Loan and the Allocable Portion of the Mezzanine Loan (to be applied in accordance with the terms of the Cash Management Agreement). Any funds on deposit in the Cash Trap Reserve shall continue to be held as additional Collateral in accordance with this Section 6.8 until the earlier of (a) the date that such funds are applied or disbursed pursuant to the foregoing sentence or (b) the date that the Minimum Debt Yield test has been satisfied for three (3) consecutive months (as determi...
Cash Trap Event means the occurrence of any one or more of the following events: (a) an Event of Default or (b) a Debt Yield Trigger Event.
Examples of Cash Trap Event in a sentence
Immediately after giving effect to the Transactions, no Cash Trap Event or Event of Default shall have occurred and be continuing on the Closing Date.
In the case of the happening of any Cash Trap Event, the Administrative Agent may, and at the direction of the Required Lenders shall, by notice to the Borrowers, provide written notice to the Borrowers that a Cash Trap Event has occurred.
If a DSCR Cure occurs, any amounts on deposit in the ECF Account on account of the Cash Trap Event related to such DSCR Cure shall not be used to prepay Loans and shall instead be released to or at the direction of the applicable Borrower.
Immediately before and after giving effect to the Borrowing of such Loan on a pro forma basis, no Cash Trap Event or Event of Default shall have occurred and be continuing on the date such Loan is made.
More Definitions of Cash Trap Event
Cash Trap Event shall have the meaning set forth in the Mortgage Loan Agreement.
Cash Trap Event as defined in Section 6.8 of the Loan Agreement.
Cash Trap Event means an event that will be deemed to occur (at any time during the Amortization Period) if the Loan Amount has been reduced to less than U.S.$25,000,000.
Cash Trap Event means, as at any date of determination, (a) LTV as of such date exceeds the Maximum Quarterly LTV Percentage then applicable, (b) as of the most recent calendar quarter end prior to such date, the Eligible Portfolio Assets that are First Lien Senior Secured Portfolio Assets have a Debt Service Coverage Ratio of (i) 1.0:1.0 or lower during the period commencing on the Closing Date and ending on the first anniversary of the Closing Date, (ii) 1.2:1.0 or lower during the period commencing on the first anniversary of the Closing Date and ending on the third anniversary of the Closing Date and (iii) 1.3:1.0 or lower during the period commencing on the third anniversary of the Closing Date and ending on the Facility Termination Date, (c) as of the most recent calendar quarter end prior to such date, (x) the sum of (i) the aggregate Value of the Eligible Portfolio Assets plus, without duplication, the funds in the Collection Account as of such date that are or would be available to the Borrower under Section 2.08(a)(ix) (on a pro forma basis after giving effect to the provisions of clauses (a)(i) through (a)(viii) of Section 2.08(a)) and (ii) the aggregate Value of the Specified CLO Assets plus, without duplication, the aggregate amount of the Sponsor’s unrestricted and unencumbered cash and cash equivalents is less than (y) 1.6 times the aggregate Advances Outstanding on such date or (d) as of the most recent calendar quarter end prior to such date, the aggregate Value of the Eligible Portfolio Assets that are First Lien Senior Secured Portfolio Assets for which no Underlying Obligor Default exists is less than 75% of the aggregate Value of the Eligible Portfolio Assets as of such date.
Cash Trap Event means, on the relevant date, the fact that the annual Underwritable Cash Flow for the Property determined by Lender as of the end of each fiscal quarter (based on Borrower’s Fiscal Year) on a trailing four (4) quarter basis is less than the Cash Trap UCF Amount.
Cash Trap Event shall occur as of the last day of any calendar quarter when the Debt Service Coverage Ratio is equal to or less than the Cash Trap DSCR, and shall continue to exist until such time as the Debt Service Coverage Ratio exceeds the Cash Trap DSCR for two (2) consecutive calendar quarters. If as of the last day of any calendar quarter the Debt Service Coverage Ratio is less than the Minimum DSCR, Lender will apply any amounts in the Cash Trap Reserve to payment of the Loan on the next Payment Date (including any required Yield Maintenance). Any funds on deposit in the Cash Trap Reserve shall continue to be held as additional Collateral in accordance with this Section 6.8. Provided that no Event of Default exists and 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 Event shall be determined by Lender in its reasonable good faith determination. Notwithstanding any provision herein to the contrary, during the continuance of an Event of Default all funds on deposit in the Cash Trap Reserve and any subsequent Excess Cash Flow may be applied by Lender to payment of the Loan (including payment of Yield Maintenance, if any) or other Obligations as Lender may elect.
Cash Trap Event shall have the meaning set forth in the Cash Management Agreement.