Limits on Distributions Sample Clauses
The "Limits on Distributions" clause sets boundaries on when and how a company or entity can distribute profits, dividends, or assets to its shareholders or members. Typically, this clause restricts distributions if doing so would violate legal requirements, breach financial covenants, or impair the entity’s ability to meet its obligations. For example, it may prohibit distributions if the company’s liabilities would exceed its assets after the payment, or if the distribution would cause a default under a loan agreement. The core function of this clause is to protect creditors and maintain the financial stability of the entity by ensuring that distributions are only made when it is legally and financially prudent to do so.
Limits on Distributions. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to any Member with respect to such Member's interest if such distribution would violate Section 18-607 of the Act or other applicable law.
Limits on Distributions. Except for Permitted Distributions, the Borrower shall not make or permit any Subsidiary to make any Distributions.
Limits on Distributions. (i) If any Default or Event of Default described in [***], shall have occurred and be continuing, Seller shall not declare, make or pay, or incur any liability to declare, make or pay, any dividend (excluding stock dividends) or other distribution on or on account of any shares of its stock (or equivalent equity interest) or any redemption or other acquisition of any shares of its stock (or equivalent equity interest) or of any warrants, rights or other options to purchase any shares of its stock (or equivalent equity interest), nor purchase, acquire, redeem or retire any stock (or equivalent equity interest) in itself, whether now or hereafter outstanding, without the prior written consent of Administrative Agent, which Administrative Agent may grant or withhold in its sole discretion.
(ii) If any Default or Event of Default other than those specifically referred to in [***] shall have occurred and be continuing, Seller shall not declare, make or pay, or incur any liability to declare, make or pay, any dividend (excluding stock dividends) or other distribution other than Tax Dividends on or on account of any shares of its stock (or equivalent equity interest) or any redemption or other acquisition of any shares of its stock (or equivalent equity interest) or of any warrants, rights or other options to purchase any shares of its stock (or equivalent equity interest), nor purchase, acquire, redeem or retire any stock (or equivalent equity interest) in itself, whether now or hereafter outstanding, without the prior written consent of Administrative Agent, which Administrative Agent may grant or withhold in its sole discretion; provided, however that, notwithstanding anything in the foregoing, Seller shall be able to make a Tax Dividend to its shareholders required for purpose of meeting such shareholder’s tax liability related to its, his or her ownership of Seller.
Limits on Distributions. Seller shall not pay, make or declare or incur any liability to pay, make or declare any dividend (excluding stock dividends) or other distribution, direct or indirect, on or on account of any shares of its stock (or equivalent equity interest) or any redemption or other acquisition, direct or indirect, of any shares of its stock (or equivalent equity interest) or of any warrants, rights or other options to purchase any shares of its stock (or equivalent equity interest), nor purchase, acquire, redeem or retire any stock (or equivalent equity interest) in itself whether now or hereafter outstanding, except that, so long as no Default or Event of Default exists at such time or will occur as a result of such payment, Seller may pay Permitted Dividends.
Limits on Distributions. Distributions shall not be made to any Member under Sections 5.2 or 5.3 if the Company is in default of any of its obligations, is reasonably expected to be in such default, or would be in such default, as a consequence of such distribution. A Member may not receive a distribution from the Company if the liabilities of the Company, (other than liabilities to Members on account of their Ownership Interests) would exceed the fair market value of the assets of the Company after giving effect to the distribution.
Limits on Distributions. In addition to and without derogating from Section 9.2(m) in respect of any Distributions referred to in paragraph (b) of the definition thereof, the Borrowers shall not make, nor shall they permit any Subsidiaries to, make any Distributions which would have or would reasonably be expected to have a Material Adverse Effect or would adversely affect or impair the ability or capacity of the Canadian Borrower or a Subsidiary to pay or fulfill any of the Secured Obligations under any Lender Financial Instruments. Notwithstanding the foregoing or any other provision of the Documents to the contrary and in addition thereto, no Borrower shall, nor shall it permit any Subsidiary to, make any Distributions during the continuance of a Default or Event of Default.
Limits on Distributions. In addition to and without derogating from Section 10.2(m) in respect of any Distributions referred to in paragraph (b) of the definition thereof, the Canadian Borrower shall not make or permit any Subsidiary to make any Distributions which would have or would reasonably be expected to have a Material Adverse Effect or would adversely affect or impair the ability or capacity of the Canadian Borrower or a Subsidiary to pay or fulfill any of the Secured Obligations under any Lender Financial Instruments. Notwithstanding the foregoing or any other provision of the Documents to the contrary and in addition thereto, the Canadian Borrower shall not make or permit any Subsidiary to make any Distributions during the continuance of a Default or Event of Default.
Limits on Distributions. The Company shall not make a distribution to the member to the extent that at the time of the distribution, after giving effect to the distribution, all liabilities of the Company, other than liabilities to the member on account of its limited liability company interest, exceed the fair value of the assets of the Company, or to the extent otherwise limited by the Act or other applicable law.
Limits on Distributions. 5 4.3 Withholding..................................................5
Limits on Distributions. So long as no Default or Event of Default has occurred and is continuing (unless waived by Agent and the Requisite Lenders as set forth in Section 10.4.1) the Borrower may make any payments or distributions to the Guarantor and Affiliates of the Guarantor ("Permitted Distributions").