Limitations on Distributions and Loans Sample Clauses

The 'Limitations on Distributions and Loans' clause restricts a company's ability to distribute profits or make loans to shareholders, directors, or related parties under certain conditions. Typically, this clause sets financial thresholds or requires that the company remain solvent after any distribution or loan, and may prohibit such actions if the company is in default or would breach financial covenants. Its core function is to protect creditors and maintain the financial stability of the company by preventing the depletion of assets that could otherwise be used to meet the company's obligations.
POPULAR SAMPLE Copied 1 times
Limitations on Distributions and Loans. Borrower will not make any distributions or loans, except as may occur both with Lender's permission and in the ordinary course of business; provided, Borrower may pay Affiliates for goods and services, but not in amounts exceeding normal and customary amounts for such goods and services.
View Source
Limitations on Distributions and Loans. Except for advances to Offsite International , Inc., in an amount from time to time approved in writing by Lender in respect of marketing fees for Time-Share Interests sold but not yet released from escrow and which may otherwise be paid to Offsite International , Inc. pursuant to paragraph 6.13, Borrower will not make distributions (inclusive of the making of loans to or investments in any of its
View Source

Related to Limitations on Distributions and Loans

  • Limitations on Distributions Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make any distribution if such distribution would violate the Act or other applicable law or would cause a breach or default under any agreement or instrument to which the Company is a party or by which it or its assets are bound, but instead shall make such distribution as soon as practicable such that the making of such distribution would not cause such violation, breach or default.

  • Limitations on Distribution Notwithstanding any provision to the contrary contained in this Agreement, the General Partner shall not make a Partnership distribution to any Partner if such distribution would violate Section 17-607 of the Act or other applicable Law.

  • Restrictions on Distributions No subsidiary of the Company is currently prohibited, directly or indirectly, from paying any distributions to the Company or the Operating Partnership or from making any other distribution on such subsidiary’s equity interests, except (A) pursuant to the agreements set forth in Exhibit E and (B) as described in the Registration Statement and the Prospectus and as prohibited by applicable law.

  • Limitation on Distributions Notwithstanding anything to the contrary contained in this Agreement, the Company, and the Managing Member on behalf of the Company, shall not be required to make a distribution to any Member on account of its interest in the Company if such distribution would violate the Act or other applicable law.

  • Limitations on Interest It is expressly the intent of Landlord and Tenant at all times to comply with applicable law governing the maximum rate or amount of any interest payable on or in connection with this Lease. If applicable law is ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord’s and Tenant’s express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder.