This note explains some common financial covenants used in commercial financial transactions, including:•Testing minimum net assets•Leverage ratio•Leverage ratio•Or debt to Equity Ratio•Capital ratio (or Acid Test Ratio)•Cash flow Ratio•Interest Cover Ratio and•Loan to Value Ratio: the parties may also enter into a hybrid supply contract and a depletion contract under which a particular area is the only one in relationship with others. it for an aggregated volume of gas or for a fixed period. Background to the single regulatory frameworkSouthistory, the European Commission (Commission) supports the use of directives (instead of regulations) to define its legislation with regard to the financial services sector. Directives that prohibit Member States from greater flexibility in the implementation of supply-based contracts, in which the seller undertakes to supply the buyer with certain quantities of gas with some flexibility as regards the source of supply. The degree of flexibility is a negotiated object and a broad right may allow the seller to purchase gas worldwide, limited only by compliance with international sanctions to which the buyer is subject; and this practice contains guidelines for the interpretation and application of the relevant provisions of the Roofs Regulation. Depending on the jurisdiction in which your case will be tried, you may also need to comply with additional provisions – see below. Note: This practice note does not deal with gas sales contracts can take different forms, including:. . .