Dividends or Distribution. Debtor will not declare or pay any dividends or distributions on any equity interest of Debtor to any Person, unless any such amounts are directly utilized for the payment of (i) principal or interest on Indebtedness owing from time to time by Debtor to Lender, or (ii) taxes owing by an equity holder of Debtor to the extent that such taxes are incurred as a result of the business operations of Debtor, so long as no Default exists immediately prior to or after giving effect to such dividends.
Appears in 2 contracts
Sources: Loan and Security Agreement (Legacy Housing Corp), Loan and Security Agreement (Legacy Housing Corp)