Under the Loan Agreement, a Cash Sweep Trigger Event occurred, and the Cash Sweep Period commenced, because Plaintiff failed to renew the Burlington Lease six months before its expiration (i.e., by November 1, 2019).Ĭash Sweep Period means each period commencing on the occurrence of a Cash Sweep Event and continuing until the earlier of (a) the Payment Date next occurring following the related Cash Sweep Event Cure, or (b) until payment in full of all principal and interest on the Loan and all other amounts payable under the Loan Documents. Plaintiff failed to cure the Cash Sweep Trigger Event because it did not satisfy the Burlington Renewal Criteria by renewing the lease under the same terms and conditions as the original Lease.įollowing the occurrence of any Cash Sweep Trigger or Event of Default, the Agent shall send notice to the Borrower that the Agent is sending or has sent a notice to the Operating Account Bank that the Agent is exercising its right to take control of the Operating Account.īorrower shall enter into the Cash Management Agreement within ten (10) Business Days after the occurrence of an Event of Default or a Cash Sweep Trigger, whichever first occurs. The Operating Account Bank, the Borrower and the Agent shall enter into an account control agreement, pursuant to which the Agent shall have control of the Operating Account following and during the continuance of any Cash Sweep Trigger or Event of Default. Such monthly payments of Cash Sweep Amount shall be deposited for each month on or before the 15th day of the succeeding month after the Cash Sweep Trigger (the “Sweep Date”).ĭuring a Cash Sweep Trigger Event Period, Borrower shall deposit with Lender all Excess Cash Flow, which sums shall be held by Lender as additional security for the Loan.īecause the Burlington Lease was scheduled to expire on May 1, 2020, Plaintiff had until Novemto renew the Lease and avoid a Cash Sweep Trigger Event. Provided no Event of Default or other Cash Sweep Trigger (as defined below) exists, Borrower may, from time to time, transfer funds in the Collections Account for the payment of Operating Expenses at the applicable Project and use such Collections Accounts as operating accounts.įor purposes of clarification, a Cash Sweep Trigger Event shall be deemed to “exist”, “be continuing” and “remain outstanding” as long as a Cash Sweep Trigger Event Cure has not occurred. Investments are automatically liquidated from your accounts to cover daily transactions and avoid overdrafts.Examples of Cash Sweep Trigger in a sentence Money Market Fund Sweep links your checking account to a non-FDIC insured money market mutual fund, Based on the predetermined target account balance, any funds exceeding the target checking account balance are swept into an investment account, once daily transactions have posted.Money Market Deposit and Daily Interest Sweep Account links your checking account to FDIC insured banks products.Only after your line of credit is paid down and your account balances exceed your pre-determined target balance, will your excess cash be swept to an investment. Once cash has been deposited in your account, the line of credit is automatically paid down to minimize your interest costs. With the Line of Credit Sweep you'll borrow only the amount necessary to prevent an overdraft. Subject to credit approval, you can establish a Line of Credit Sweep that will work in conjunction with certain investment options. Line of Credit Sweep Service is an effective liquidity management solution that can help increase returns on idle cash balances and minimize interest expense on your line of credit. PNC offers a suite of sweep products to fit your needs: Managing your working capital and liquidity needs is an essential part of maximizing your earnings, minimizing your interest expense and avoiding the challenges of moving money to confirm that you have sufficient funds to cover your daily operations.
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