Common use of Indebtedness of any Subsidiary Clause in Contracts

Indebtedness of any Subsidiary. of Borrower to Borrower or to any other Subsidiary of Borrower for so long as (i) such Indebtedness is held by Borrower or a Subsidiary of Borrower, (ii) any such Indebtedness from any Subsidiary of Borrower to Borrower in excess of $500,000 in aggregate principal amount shall be evidenced by a written promissory note or other instrument in form and substance reasonably satisfactory to Foothill, and (iii) any such Indebtedness shall not be secured by a Lien on any asset of any Subsidiary of Borrower held by a Person other than Borrower or a Subsidiary of Borrower; provided, however, that, as of any date that (1) any Person other than Borrower or a Subsidiary of Borrower owns or holds such Indebtedness or (2) any such Indebtedness is secured by a Lien on any asset of Borrower or its Subsidiaries held by any Person other than Borrower or a Subsidiary of Borrower, any such date shall be deemed the date of incurrence of Indebtedness not constituting Permitted Indebtedness;