Incur Indebtedness Clause Samples
The "Incur Indebtedness" clause defines the conditions under which a party, typically a borrower, is permitted to take on new debt obligations during the term of an agreement. This clause often outlines specific limits, types of allowable debt, or requires prior consent from the other party before additional loans, credit lines, or financial liabilities can be incurred. By setting these boundaries, the clause helps protect the interests of the lender or counterparty by preventing excessive or risky borrowing that could jeopardize the borrower's ability to meet existing obligations.
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Incur Indebtedness. Incur, create, assume, or permit to exist any ------------------ Indebtedness, except:
(a) Indebtedness of the Borrower owing to the Lenders and the Agent under this Agreement and the Notes;
(b) Indebtedness existing on the Closing Date that is listed on Annex I hereto and any renewals, extensions or refinancings of the same, provided that the principal amount of such Indebtedness at the time of such renewal, extension or refinancing is not increased in connection therewith;
(c) Approved Subordinated Indebtedness;
(d) Indebtedness in respect of normal trade debt arising in the ordinary course of business which does not significantly exceed the levels of such debt historically incurred by the Borrower or its Subsidiary, as the case may be;
(e) Indebtedness secured by Liens permitted by Section 8.02(f); and
(f) Indebtedness that constitutes Guaranteed Indebtedness of the Borrower that has been incurred by the Borrower solely by virtue of the Borrower's endorsement of checks or drafts negotiated in the ordinary course of the Borrower's business.
Incur Indebtedness. To borrow money in such amounts as directed by the Committee, to assume indebtedness, extend mortgages and encumber by mortgage or pledge, all as directed by the Committee.
Incur Indebtedness. Incur, create, assume or permit any Indebtedness other than Permitted Debt and Indebtedness secured by the Mortgage Loan Documents or incur, create, assume or permit any other encumbrances other than Permitted Encumbrances;
Incur Indebtedness. Enter into any similar type of financing arrangement.
Incur Indebtedness incur, assume, guarantee or permit to exist any indebtedness other than:-
(i) the indebtedness under the Facilities;
(ii) the indebtedness which have been disclosed to the Lender prior to the date of this Agreement;
Incur Indebtedness. Incur, create, assume, or permit to exist any Indebtedness at any time, except:
(a) Indebtedness of the Borrower owing to the Bank under this Agreement and the Notes;
(b) other Indebtedness of the Borrower owing to the Bank;
(c) Indebtedness existing on the date hereof that is described on Annex I hereof;
(d) Approved Subordinated Indebtedness;
(e) Indebtedness in respect of normal trade debt arising in the ordinary course of business;
(f) Indebtedness secured by Liens permitted to exist pursuant to Section 8.02(h); Notwithstanding the foregoing provisions of this clause (f), before the Borrower or any of its Subsidiaries incurs Indebtedness for borrowed money under this clause (f) the Borrower shall give the Bank written notice of the intention to borrow, setting forth a description of the proposed borrowing, and the Bank shall have 5 Business Days to notify the Borrower that it elects to make the proposed loan. If the Bank fails to make such election, then the Borrower and its Subsidiaries shall be free to incur the proposed Indebtedness on substantially as favorable terms to the Borrower and its Subsidiaries, as applicable, as proposed to the Bank free of the right of the Bank to make such loan under this clause (f). If the Bank elects to make the proposed loan, then the Borrower and the Bank shall negotiate in good faith to consummate the proposed loan within a reasonable time. If such negotiations do not result in the closing of the proposed loan, then the Borrower and its Subsidiaries, as applicable, shall be entitled to borrow on substantially as favorable terms to the Borrower and its Subsidiaries, as applicable, as proposed free of the right of the Bank to make the proposed loan under this clause (f);
(g) Indebtedness that constitutes Guaranteed Indebtedness of the Borrower or any of its Subsidiaries that has been incurred by the Borrower or any of its Subsidiaries solely by virtue of an endorsement of checks or drafts negotiated in the ordinary course of the business;
(h) Indebtedness incurred or assumed in connection with acquisitions permitted pursuant to Section 8.03 hereof, but only to the extent that such Indebtedness would otherwise be permitted to exist pursuant to clauses (d), (e), (f)(but without regard to the monetary threshold set forth in clause (h) of Section 8.02 hereof), (g), (j) or (l) of this Section 8.01;
(i) Indebtedness owing from or to Borrower or any of its Subsidiaries to or from any other of its Subsidiaries or Borrower;
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Incur Indebtedness. Creation of Lien. Incur, create, or assume any indebtedness including, without limitation, obligations under capitalized leases, except indebtedness owing to the Bank, indebtedness existing on the date hereof and previously reported in writing to and permitted by the Bank, indebtedness incurred for normal consumer purposes, and trade indebtedness arising in the ordinary course of the Borrower's business; make any loans or advances to others including, without limitation, officers, directors, shareholders, principals, partners, members, managers, or affiliates of the Borrower or any Obligor; or create, permit, or suffer the creation of any liens, security interests or other encumbrances on any of its property, real or personal, except liens, security interests or encumbrances in favor of the Bank or existing on the date hereof and previously reported in writing to and permitted by the Bank;
Incur Indebtedness. Borrower shall not, nor shall it cause, permit or allow any Subsidiary to create, assume, incur, have outstanding, or in any manner become liable in respect of any Indebtedness other than that represented by this Agreement and the Notes; provided, however, that the foregoing shall not restrict nor operate to prevent:
5.1.1.1. the obligations of Borrower owing to Lender and other Indebtedness and obligations of Borrower or any Subsidiary from time to time owing to Lender;
Incur Indebtedness. Incur any debt for borrowed money except for indebtedness owing to Laurus, Horizon and St. Cloud Capital Partners, L.P. (“St. Cloud”) as such facilities may exist from time to time, including any extensions or modifications thereto, and existing obligations owed to ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇;
Incur Indebtedness. 42 8.02 Negative Pledge....................................... 42 8.03 Sale of Assets; Liquidation; Merger; Acquisitions.....