Excess Availability Requirement definition
Examples of Excess Availability Requirement in a sentence
If at any time the sum of the outstanding Advances and Letter of Credit Usage exceeds either the Maximum Revolver Amount, less Reserves in accordance with Section 1.1(a) above or the Borrowing Base calculated without regard to Letter of Credit Usage minus the Excess Availability Requirement (the “Overadvance Amount”), then Borrower shall immediately upon demand by Lender repay the Obligations in an aggregate amount equal to the Overadvance Amount.
The deposit of such funds shall be deemed to have satisfied the Excess Availability Requirement for such period effective as of each date of determination of any such Shortfall Amount with the same effect as though there had been no failure to comply with the Excess Availability Requirement on such date and any applicable Default or Event of Default which would have resulted therefrom with respect to such period shall be deemed cured for all purposes of this Agreement and the other Loan Documents.
Following a Trigger Date, the requirement to comply with the Fixed Charge Coverage Ratio covenant shall remain in effect unless and until the Borrowers have maintained Excess Availability of at least equal to the Financial Covenant Excess Availability Requirement for a period of at least ninety (90) consecutive days, after which time the requirement to comply with the Fixed Charge Coverage Ratio shall not apply unless a subsequent Trigger Date occurs.
The Borrowing Base Certificate shall evidence that the Excess Availability Requirement has been satisfied.
If at any time the aggregate outstanding Advances under the Line of Credit exceeds the lesser of (i) the Maximum Revolver Amount minus Letter of Credit Usage minus Reserves in accordance with Section 1.1(a) above or (ii) the Borrowing Base minus the Excess Availability Requirement, Borrower will immediately pay Lender such excess.