Multiple indebtedness Clause Samples

The Multiple Indebtedness clause defines how a borrower's various debts to a lender are treated under an agreement, typically by consolidating or cross-referencing multiple obligations. In practice, this clause ensures that all current and future debts, whether arising from different loans, credit facilities, or other financial arrangements with the same lender, are considered collectively. This approach allows the lender to treat all outstanding amounts as a single pool of debt, which can simplify enforcement and collateral arrangements, and helps prevent the borrower from prioritizing repayment of one debt over another owed to the same lender.
Multiple indebtedness. Time at which adjustments to basis of indebtedness are effective.
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Multiple indebtedness. If a share- holder holds more than one indebted- ness at the close of the corporation’s taxable year or, if applicable, imme- diately prior to the termination of the shareholder’s interest in the corpora- tion, the reduction in basis is applied to each indebtedness in the same pro- portion that the basis of each indebted- ness bears to the aggregate bases of the indebtedness to the shareholder.
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Multiple indebtedness. If a share- holder holds more than one indebted- ness (including any open account debt and any debt treated as a single indebt- edness under paragraph (a)(2)(ii) of this section) as of the beginning of an S cor- poration’s taxable year, any net in- crease is applied first to restore the re- duction of basis in any indebtedness re- paid (in whole or in part) in that tax- able year to the extent necessary to offset any gain that would otherwise be realized on the repayment. Any re- maining net increase is applied to re- store each outstanding indebtedness (including any open account debt and any debt treated as a single indebted- ness under paragraph (a)(2)(ii) of this section) in proportion to the amount that the basis of each outstanding in- debtedness has been reduced under sec- tion 1367(b)(2)(A) and paragraph (b) of this section and not restored under sec- tion 1367(b)(2)(B) and this paragraph (c). (d) Time at which adjustments to basis of indebtedness are effective— (1) In general. The amounts of the ad- justments to basis of indebtedness (in- cluding open account debt) provided in section 1367(b)(2) and this section are determined as of the close of the S cor- poration’s taxable year, and the adjust- ments are generally effective as of the close of the S corporation’s taxable year. However, if the shareholder is not a shareholder in the S corporation at that time, these adjustments are effec- tive immediately before the share- holder terminates his or her interest in the S corporation. Except as provided in paragraph (d)(2) of this section, if a debt is disposed of or repaid in whole or in part before the close of the taxable year, the basis of that indebtedness is restored under paragraph (c) of this section, effective immediately before the disposition or the first repayment on the debt during the taxable year. To the extent any indebtedness of the S corporation to the shareholder is dis- posed of or repaid (in whole or in part) during the taxable year and the share- holder’s basis in that indebtedness has been reduced under paragraph (b) of this section and is not restored com- pletely under paragraph (c) of this sec- tion, the disposition or repayment is a recognition event effective imme- diately before the indebtedness is dis- posed of or repaid (in whole or in part).
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Multiple indebtedness. Restoration of basis.
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Related to Multiple indebtedness

  • Investments; Indebtedness PNU shall not, and shall not permit any of its Subsidiaries to, other than in connection with actions permitted by Section 4.1(e), (i) make any loans, advances or capital contributions to, or investments in, any other Person, other than (x) by PNU or a direct or indirect wholly owned Subsidiary of PNU to or in PNU or any direct or indirect wholly owned Subsidiary of PNU, (y) pursuant to any contract or other legal obligation of PNU or any of its Subsidiaries as in effect at the date of this Agreement or (z) in the ordinary course of business consistent with past practice in an aggregate amount not in excess of the aggregate amount specified in Section 4.1(g) of the PNU Disclosure Schedule or (ii) create, incur, assume or suffer to exist any indebtedness, issuances of debt securities, guarantees, loans or advances not in existence as of the date of this Agreement except pursuant to the credit facilities, indentures (but not in excess of amounts authorized for issuance thereunder as of the date of this Agreement) and other arrangements in existence on the date of this Agreement or trade debt and commercial finance in the ordinary course of business consistent with past practice, in each case as such credit facilities, indentures and other arrangements and other existing indebtedness may be amended, extended, modified, refunded, renewed or refinanced after the date of this Agreement which does not increase the aggregate principal amount or amount of the facility, as the case may be.

  • Outstanding Indebtedness For the avoidance of doubt, to the extent that any Indebtedness is repaid, redeemed, repurchased, defeased or otherwise acquired, retired or discharged, in each case, in accordance with the terms of the documentation governing such Indebtedness, such Indebtedness shall be deemed to be paid off and not to be outstanding for any purpose hereunder to the extent of the amount of such repayment, redemption, repurchase, defeasance, retirement or discharge.

  • Subsidiary Indebtedness The Borrower will not permit any Domestic Subsidiary that is not an Obligor to create, incur, assume or permit to exist any Indebtedness, except: (a) obligations under the Loan Documents; (b) any other Indebtedness existing on the Effective Date and described in Schedule 7.01 (and any Indebtedness that may be incurred after the Effective Date under commitments to extend such Indebtedness available on the Effective Date and so described), and Indebtedness the proceeds of which are used solely to refinance such Indebtedness; (c) Indebtedness referred to in, and secured by Liens permitted under, Section 7.02(e); (d) Indebtedness referred to in, and secured by Liens permitted under, Sections 7.02(c) and 7.02(d); (e) Indebtedness in respect of (i) documentary letters of credit and trade letters of credit incurred in the ordinary course of business and (ii) trade bank acceptance drafts incurred in the ordinary course of business; (f) current liabilities, other than for borrowed money, incurred in the ordinary course of business; (g) Indebtedness of any Subsidiary owing to the Borrower or any other Subsidiary; (h) Indebtedness arising from Domestic Securitization Transactions permitted by Section 7.02(k), provided that the aggregate amount of such Indebtedness shall not exceed $300,000,000 at any time outstanding; and (i) other Indebtedness, provided that, as of the Effective Date and as of the time any Indebtedness is created, incurred or assumed in reliance on this clause (i), the aggregate principal amount of all Indebtedness outstanding in reliance on this clause (i) (together with the aggregate principal amount of any such Indebtedness to be created, incurred or assumed in reliance on this clause (i)) does not exceed the greater of (i) $250,000,000 and (ii) 5.0% of Tangible Net Worth as of the Effective Date or as of the date such Indebtedness is created, incurred or assumed, as applicable.

  • Indebtedness Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

  • Permitted Indebtedness Neither the Company nor any Subsidiary ---------------------- will create, incur or assume any Indebtedness other than: (a) Indebtedness represented by or incurred under the Notes and the Purchase Agreement and the Revolving Credit Facility; (b) Indebtedness incurred to prepay or repay in full the remaining outstanding principal amount of Notes and all other amounts due thereon or under the Purchase Agreement; (c) Indebtedness existing on the Closing Date and identified on the Disclosure Schedule; (d) Indebtedness incurred solely as an extension, renewal, refinancing or replacement of Indebtedness of the Company or of its Subsidiaries under clause (iii) above (but excluding any Indebtedness under clause (iii) above to the extent such Indebtedness is repaid with the proceeds from the sale of the Notes and Warrants), provided that any such extension, renewal or refinancing (A) shall be on terms which on balance are substantially as favorable to the Company (or the relevant Subsidiary) as the terms of such existing Indebtedness (other than changes in the amount of the interest rate and other than the imposition of additional Liens permitted by Section 9.10(f) hereof) and (B) shall not be in a greater principal amount or have a shorter average life or earlier maturity than such existing Indebtedness; (e) Indebtedness in an aggregate principal amount outstanding not exceeding $20,000,000 incurred solely to finance the purchase price of additional towers and related facilities and equipment; (f) Interest Rate Protection Agreements required by the Revolving Credit Facility or incurred for hedging purposes in the ordinary course of business; and (g) Additional Indebtedness in an amount which , together with sale and leaseback obligations permitted under Section 9.11, does not exceed $2,000,000.