Net Worth Covenant definition
Examples of Net Worth Covenant in a sentence
In no event shall the Minimum Tangible Net Worth Covenant be decreased.
Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the fiscal quarter in which said net income is realized, and shall continue effective thereafter.
Increases in the Minimum Tangible Net Worth Covenant based on consideration received for equity securities and subordinated debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter.
The Borrower may make the election under the preceding sentence only if it makes the corresponding election with respect to the Consolidated Tangible Net Worth Covenant at the same time.
On the last Business Day of each calendar month, the Tangible Net Worth of Lessee shall not be less than the Minimum Tangible Net Worth Covenant Level Amount.
Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the Period in which said net income is realized, and shall continue effective thereafter.
Each Obligor shall, except as expressly amended or modified by the provisions of this Agreement, continue to, except for compliance with the Debt to Tangible Net Worth Covenant and the Current Ratio Covenant which covenants are hereby waived, comply with each of the covenants set forth in the Loan Agreements, Notes and the other Loan Documents to which it is a party, as applicable.
The Borrowers have requested certain changes to the Current Credit Agreement including, among others, the following: (1) a modification of the Adjusted Total Debt/Cash Flow Ratio; (2) a modification to the Fixed Charge Coverage Ratio; (3) a modification of the Adjusted Senior Debt/Cash Flow Ratio; (4) a modification of certain prepayment provisions and (5) a modification to the Consolidated Net Worth Covenant.
Stonegate Mortgage Corporation By: Name: Title: Net Worth (book) $ Subordinated Debt (maturity >Bof A line maturity) — Capital Contributions during QTR or previous Qtr (monthly) — Goodwill — Patents — Trademarks — Capitalized Software costs — Trade names — Copyrights — Franchise and Deferred charges — Receivables due from Affiliates — Tangible Net Worth Covenant = $[ ].
The undersigned Responsible Officer of Residential Capital, LLC (“ResCap”) certifies to the Lender that ResCap is in compliance with the GMAC Revolver financial covenants referenced in Section 8.01(j) of the Loan Agreement as demonstrated on Exhibits A and B attached hereto; Attached as Exhibit A hereto are calculations demonstrating ResCap’s compliance with the Consolidated Tangible Net Worth Covenant.