Trump type large real estate deal liquidity requirements.
by IAND75 (2024-03-23 14:13:37)

In an article I read about Trump’s financial situation and ability to post a bond in NY a comment was made that in deals such as his it is not uncommon to have some requirement that he must maintain some cash liquidity level. Nothing more than that was said.’

Of course, no one outside the Trump Organization knows what those requirements and levels may actually be.

But in general, how do those types of requirements usually work?

If a person had 10 large leveraged deals and each required that a minimum $10 million dollars of cash be maintained, would that require that the borrower have $10 million in cash in the bank or $100 million?

How do lenders monitor and enforce such clauses, especially when dealing with a private entity such as the Trump Organization?