Common use of Limitation on Borrowing Clause in Contracts

Limitation on Borrowing. Except as contemplated by Section 9.12 hereof, the Depositor shall not incur, assume or guarantee any indebtedness of any Person, except for indebtedness that: (i) by its terms is completely subordinated to indebtedness of the Depositor; (ii) is non-recourse other than with respect to proceeds in excess of the proceeds necessary to pay the Bonds of any Series; (iii) does not constitute a claim against the Depositor to the extent that such excess proceeds are insufficient to pay such debt; (iv) by its terms provides that the holder thereof may not cause the filing of a petition in bankruptcy or take any similar action against the Depositor until at least [___ days] after all indebtedness represented by each Outstanding Bond is paid in full; and (v) will not adversely affect or result in a withdrawal of the rating of the Bonds by any Rating Agency.

Appears in 1 contract

Sources: Indenture (Union Planters Home Equity Corp)

Limitation on Borrowing. Except as contemplated by Section 9.12 hereof, the Depositor shall not incur, assume or guarantee any indebtedness of any Person, except for indebtedness that: (i) by its terms is completely subordinated to indebtedness of the Depositor; (ii) is non-recourse other than with respect to proceeds in excess of the proceeds necessary to pay the Bonds of any Series; (iii) does not constitute a claim against the Depositor to the extent that such excess proceeds are insufficient to pay such debt; (iv) by its terms provides that the holder thereof may not cause the filing of a petition in bankruptcy or take any similar action against the Depositor until at least [___ days] 121 days after all indebtedness represented by each Outstanding Bond is paid in full; and (v) will not adversely affect or result in a withdrawal of the rating of the Bonds by any Rating Agency.

Appears in 1 contract

Sources: Indenture (Union Planters Mortgage Finance Corp)