DEFEASANCE OR COVENANT DEFEASANCE Clause Samples
The Defeasance or Covenant Defeasance clause allows a borrower to be released from certain obligations under a loan or indenture, typically after meeting specific conditions such as depositing sufficient funds or government securities to cover future payments. In practice, this means that once the borrower sets aside the required assets, the lender can no longer enforce some or all of the covenants or claims under the agreement, even though the debt technically remains outstanding. This clause is primarily used to provide flexibility for the borrower, enabling them to remove liabilities from their balance sheet or to facilitate refinancing, while ensuring the lender is still protected by the secured assets.
DEFEASANCE OR COVENANT DEFEASANCE. SECTION 4.01. Company's Option to Effect Defeasance or Covenant Defeasance....................................................................31 SECTION 4.02. Defeasance and Discharge......................................................32 SECTION 4.03. Covenant Defeasance...........................................................32 SECTION 4.04. Conditions to Defeasance or Covenant Defeasance...............................33 SECTION 4.05.
DEFEASANCE OR COVENANT DEFEASANCE. The Company's Option To Effect Defeasance or Covenant Defeasance.....................................................71
DEFEASANCE OR COVENANT DEFEASANCE. (a) Subject to the satisfaction of the conditions in Section 8.2(c) hereof, the Company may, at its option by Board Resolution, at any time, with respect to the Notes, elect to have the obligations of the Company and the Guarantors discharged with respect to the outstanding Notes ("defeasance"). Upon such defeasance, the Company shall be deemed to have paid and discharged the entire indebtedness represented by the outstanding Notes and the Note Guarantees, which shall thereafter be deemed to be "outstanding" only for the purposes of Section 8.4 hereof and the other Sections of and matters under this Indenture referred to in clauses (i) and (ii) below, and to have satisfied all its other obligations under such Notes and this Indenture, except for the following, which shall survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of Notes to receive solely from the trust fund described in Section 8.2(c) and as more fully set forth in such Section, payments in respect of the principal of and interest on such Notes when such payments are due, (ii) the Company's obligations under Sections 2.3, 2.4, 2.6, 2.7, 2.8 and 4.2, the rights, powers, trusts, duties and immunities of the Trustee hereunder, including, without limitation, the Trustee's rights under Section 7.7, and (iv) this Article Eight. Subject to compliance with this Article Eight, the Company may exercise its option under this Section 8.2(a) notwithstanding the prior exercise of its option under Section 8.2(b) with respect to the Notes.
(b) Subject to the satisfaction of the conditions in Section 8.2(c) hereof, the Company may, at its option by Board Resolution, at any time, elect to effect covenant defeasance ("covenant defeasance"). On and after the date such conditions are satisfied, (i) the Company shall be released from its obligations under any covenant or provision contained in Sections 4.4, 4.5, 4.6(a), 4.7 and 4.9 through 4.19, (ii) clauses (iii) through (vi) of Section 6.1 hereof shall not apply, and (iii) the provisions of Articles Five, Ten and Eleven shall not apply, and the Notes shall thereafter be deemed to be not "outstanding" for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants and the provisions of Articles Five, Ten and Eleven, but shall continue to be deemed "outstanding" for all other purposes hereunder. For this purpose, such covenant defeasance mean...
DEFEASANCE OR COVENANT DEFEASANCE. The Company’s Option to Effect Defeasance or Covenant Defeasance. The Company may, at its option, at any time, elect to have terminated the obligations of the Company with respect to Outstanding Notes and the other Note Documents and to have terminated all of the obligations of the Subsidiary Guarantors with respect to the Subsidiary Guarantees, in each case, as set forth in this Article XII, and elect to have either Section 1202 or 1203 be applied to all of the Outstanding Notes (the “Defeased Notes”), upon compliance with the conditions set forth below in Section 1204. Either Section 1202 or Section 1203 may be applied to the Defeased Notes to any Redemption Date or the Stated Maturity of the Notes.
DEFEASANCE OR COVENANT DEFEASANCE. Section 1201. The Issuers' Option To Effect Defeasance or Covenant Defeasance................ 110 Section 1202. Defeasance and Discharge....................................................... 110 Section 1203. Covenant Defeasance............................................................ 111 Section 1204. Conditions to Defeasance or Covenant Defeasance................................
DEFEASANCE OR COVENANT DEFEASANCE. Section 4.01. Company's Option To Effect Defeasance or Covenant Defeasance.. . . . . . . . . . . . . . . . . . . . . . . . 43 Section 4.02. Defeasance and Discharge.. . . . . . . . . . . . . . . . . 43 Section 4.03.
DEFEASANCE OR COVENANT DEFEASANCE. Section 1201. The Company's Option to Elect Defeasance or Covenant Defeasance......................................... 108 Section 1202. Defeasance and Discharge................................ 108 Section 1203. Covenant Defeasance..................................... 109 Section 1204. Conditions to Defeasance or Covenant Defeasance......... 109
DEFEASANCE OR COVENANT DEFEASANCE. Section 1201. The Company’s Option to Effect Defeasance or Covenant Defeasance Section 1202. Defeasance and Discharge 99 Section 1203. Covenant Defeasance 99 Section 1204. Conditions to Defeasance or Covenant Defeasance 100 Section 1205. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions 100 Section 1206. Reinstatement 102 Section 1207. Repayment to the Company 103 Section 1301. Guarantees Generally 103 Section 1302. Continuing Guarantees 104 Section 1303. Release of Guarantees 105 Section 1304. [Reserved] 105 Section 1305. Waiver of Subrogation 106 Section 1306. Notation Not Required 106 Section 1307. Successors and Assigns of Guarantors 106 Section 1308. Execution and Delivery of Guarantees 106 Section 1309. Notices 106 Exhibit A Form of Initial Note Exhibit B Form of Exchange Note Exhibit C Form of Certificate of Beneficial Ownership Exhibit D Form of Regulation S Certificate Exhibit E Form of Supplemental Indenture in Respect of Subsidiary Guarantees Exhibit F Form of Certificate from Acquiring Institutional Accredited Investors Trust Indenture Act Section Indenture Section § 310(a)(1) 709 (a)(2) 709
(a) (3) Not Applicable
(a) (4) Not Applicable
(b) 708 § 311(a) 713 (b) 713 § 312(a) 801, 802 (b) 802 (c) 802 § 313(a) 803 (b) 803 (c) 803 (d) 803 § 314(a) ▇▇▇ (▇)(▇) ▇▇▇, ▇▇▇
(▇) Not Applicable
(c) (1) 106 (c)(2) 106
DEFEASANCE OR COVENANT DEFEASANCE. Section 1201. The Issuer’s Option to Effect Defeasance or Covenant Defeasance 127 Section 1202. Defeasance and Discharge 128 Section 1203. Covenant Defeasance 128 Section 1204. Conditions to Defeasance or Covenant Defeasance 129 Section 1205. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions 130 Section 1206. Reinstatement 131 Section 1207. Repayments to Issuers 131
DEFEASANCE OR COVENANT DEFEASANCE. Section 1201. The Company’s Option to Effect Defeasance or Covenant Defeasance 125 Table of Contents (continued) Section 1202. Defeasance and Discharge 126 Section 1203. Covenant Defeasance 126 Section 1204. Conditions to Defeasance or Covenant Defeasance 127 Section 1205. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions 128 Section 1206. Reinstatement 129 Section 1207. Repayment to the Company 129 Section 1301. Guarantees Generally 129 Section 1302. Continuing Guarantees 131 Section 1303. Release of Subsidiary Guarantees 131 Section 1304. [Reserved] 132 Section 1305. Waiver of Subrogation 132 Section 1306. Notation Not Required 133 Section 1307. Successors and Assigns of Subsidiary Guarantors 133 Section 1308. Execution and Delivery of Subsidiary Guarantees 133 Section 1309. Notices 133