Prior Lien Indebtedness Clause Samples

Prior Lien Indebtedness. (a) The Company will not acquire any property which at the time of acquisition thereof shall be or become subject to any Prior Lien, other than liens securing the unpaid purchase price of net equipment or machinery, (i) if at the date of acquisition of such property the principal amount of indebtedness secured by such Prior Lien or Prior Liens shall exceed 60% of the Cost to the Company of the property so acquired, and (ii) if such property, prior to the acquisition thereof by the Company, was operated by another in a business similar to that carried on or to be carried on by the Company, unless the net earnings of such property, for a period of twelve consecutive calendar months within the fifteen calendar months immediately preceding the date of acquisition, computed (except with respect to depreciation or obsolescence) as nearly as may be in the manner set forth in Section 1.04 for the computation of the net earnings of the Company, but after deduction of actual charges or provisions for depreciation or obsolescence, shall have been at least twice the actual interest charges upon the Prior Lien Indebtedness to be secured by such Prior Lien or Prior Liens Outstanding immediately after the acquisition of such property by the Company. (b) The Company will not permit any increase in the aggregate principal amount of the Outstanding indebtedness secured by any Prior Lien to the extent such increase would cause the sum of the principal amount of all Outstanding Prior Lien Indebtedness plus all Outstanding Bonds to exceed 60% of the sum of (i) Available Cash and (ii) the lesser of the Cost or Fair Value of the Company’s Additional Property as of the date of such increase. (c) In case the Company shall, as hereinabove permitted, acquire any Bondable Property subject to any Prior Lien, the interest of the Company in all such property shall at all times be subject to the Lien of this Indenture and, if and when the title to such property shall vest in the Company free and clear of such Prior Lien, then such property shall forthwith be and become subject to the Lien of this Indenture as a first mortgage thereon, subject only to Permitted Encumbrances as herein defined.
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Related to Prior Lien Indebtedness

  • Secured Indebtedness The Borrower shall not permit the ratio of (i) Secured Indebtedness of the Borrower and its Subsidiaries to (ii) Total Asset Value to be greater than 0.40 to 1.00 at any time.

  • 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.

  • Priority Debt The Company will not permit Priority Debt to exceed 15% of Consolidated Total Assets (as of the end of the Company’s then most recently completed fiscal quarter) at any time.

  • Subordinated Indebtedness The Obligations constitute senior indebtedness which is entitled to the benefits of the subordination provisions of all outstanding Subordinated Indebtedness.

  • Existing Indebtedness; Future Liens (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Parent Guarantor and its Significant Subsidiaries as of March 31, 2018 (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guarantees thereof, but excluding any intercompany Indebtedness), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Parent Guarantor or its Significant Subsidiaries. No Obligor nor any Significant Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of such Obligor or such Significant Subsidiary and no event or condition exists with respect to any Indebtedness of any Obligor or any Significant Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. (b) Except as disclosed in Schedule 5.15, no Obligor nor any Significant Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5. (c) No Obligor nor any Significant Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of such Obligor or such Significant Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of such Obligor, except as disclosed in Schedule 5.15.