Common use of FIN 46 Clause in Contracts

FIN 46. Notwithstanding the foregoing, no entity that is consolidated with the Borrower solely as a result of the application of the Financial Accounting Standard Board’s Interpretation 46 (Consolidation of Variable Interest Entities), as amended or revised from time to time (“FIN 46”) and that does not otherwise satisfy the criteria of the definition of the term “Subsidiary” shall be deemed to be a Subsidiary of the Borrower for any purpose of this Agreement. Accordingly, neither the earnings nor the Debt of any such entity shall be included in the calculation of the financial covenants hereunder nor shall any such entity be subject to any other provisions of this Agreement solely as a result of FIN 46. If, however, the Debt of any such entity is recourse to the Borrower or any Subsidiary of the Borrower, such Debt shall be included in the calculation of the financial covenants hereunder to the extent required herein. For the avoidance of doubt, any entity that satisfies the criteria of the definition of the term “Subsidiary” shall be treated as such for all purposes of this Agreement.