Option to Effect Covenant Defeasance Sample Clauses
The "Option to Effect Covenant Defeasance" clause allows a borrower or issuer to be released from certain restrictive covenants in a debt agreement, typically after meeting specific conditions such as depositing sufficient funds or government securities to cover future payments. In practice, this means the issuer can eliminate ongoing obligations like maintaining financial ratios or restrictions on asset sales, while still being responsible for principal and interest payments. This clause provides flexibility to the issuer by reducing operational constraints once the debt is effectively secured, thereby addressing the need for greater freedom in managing business activities without breaching the original covenants.
Option to Effect Covenant Defeasance. The Company may, at the option of its Board of Directors evidenced by a Board Resolution set forth in an Officers’ Certificate, at any time, elect to have Section 8.02 hereof be applied to all outstanding Securities upon compliance with the conditions set forth below in this Article 8.
Option to Effect Covenant Defeasance. The Borrower may, at its option and at any time, elect to have clause (b) applied to the outstanding Loan and Obligations upon compliance with the conditions set forth below in this Section 2.21.
Option to Effect Covenant Defeasance. The Company may, at its option and at any time, elect to have Section 13.02 applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 13. The Notes will not be subject to legal defeasance.
Option to Effect Covenant Defeasance. The Issuer may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, elect to have Section 9.02 hereof applied to all outstanding Notes upon compliance with the conditions set forth below in this Article Nine.