Debt Coverage Ratio

Debt Coverage Ratio. Shall mean, as of any applicable date of determination, the ratio of: (1) the sum of Borrower's Net Operating Income, divided by (2) annual debt service on total outstanding mortgage debt plus total open line of credit commitments amortized over 25 years at the "Average Annual Rate of Interest." The Debt Coverage Ratio shall be determined by the Bank as of each Fiscal Quarter (as defined below) and on the basis of the preceding twelve (12) month period (actual or... based on annualized quarters) as follows: (i) as to each Fiscal Quarter ending on March 31, June 30, and September 30, from Borrower's SEC Form 10-Q filed with the Securities and Exchange Commission relating to such quarter, with such quarterly year to date results annualized; and (ii) as to each Fiscal Quarter ending on December 31, from Borrower's SEC Form 10-K relating to the year ending on such date. Notwithstanding the foregoing, the Bank may also rely on other information that Borrower is obligated to provide to the Bank pursuant to Section 5.1 of this Agreement. Exhibit C hereto includes an example of the calculation of Debt Coverage Ratio as defined herein from Borrower's SEC Form 10-K for the period ending September 30, 2007, and is provided for example purposes only. View More