Common use of Limitation on Restrictions Affecting Subsidiaries Clause in Contracts

Limitation on Restrictions Affecting Subsidiaries. The Issuer and the Guarantor will not, and will not permit any Subsidiary of the Issuer or the Guarantor, respectively, to enter into, or suffer to exist, any agreement with any Person, other than this Agreement, which prohibits or limits in any material respect the ability of any such Subsidiary to pay dividends or make other distributions or pay any Debt owed to either the Issuer or the Guarantor or any Subsidiary thereof or make loans or advances to either the Issuer or the Guarantor or any Subsidiary thereof.

Appears in 2 contracts

Sources: Note Purchase Facility Agreement (Tele Norte Leste Participacoes Sa), Note Purchase Facility Agreement (Tele Norte Leste Participacoes Sa)