Common use of Owned Subsidiary Clause in Contracts

Owned Subsidiary. The Borrower will not permit any Significant Subsidiary to consolidate or merge with or into, or sell, lease or otherwise transfer all or any Substantial part of its assets to, any person other than the Borrower or a Wholly Owned Subsidiary (or a person which as a result of such transaction becomes a Wholly Owned Subsidiary), provided that in the case of any merger or consolidation involving TU Electric or Enserch, such person must assume or be responsible by operation of law for all the obligations of TU Electric or Enserch, as applicable, hereunder, and the Borrower will not in any event permit any such consolidation, merger, sale, lease or transfer if any Default or Event of Default shall have occurred and be continuing at the time of or after giving effect to any such transaction. Notwithstanding the foregoing, (a) neither the Borrower nor any of its Subsidiaries will engage to a Substantial extent in businesses other than those currently conducted by them, or in the case INTERIM FACILITY 48 of Enserch, by Enserch and other businesses reasonably related thereto, (b) neither the Borrower nor any of its Subsidiaries will acquire any Subsidiary or make any investment in any Subsidiary if, upon giving effect to such acquisition or investment, as the case may be, the Borrower would not be in compliance with the covenants set forth in Sections 5.11 and 5.12 and (c) nothing in this Section shall prohibit any sales of assets permitted by Section 5.10(d).