Restrictions on Intercompany Transfers. The Borrower shall not, and shall not permit any other Loan Party to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Loan Party to: (a) pay dividends or make any other distribution on any of such Loan Party’s Equity Interests owned by the Borrower or any Loan Party; (b) pay any Indebtedness owed to the Borrower or any Loan Party; (c) make loans or advances to the Borrower or any Loan Party; or (d) transfer any of its property or assets to the Borrower or any Loan Party; other than (i) with respect to clauses (a) through (d) those encumbrances or restrictions contained in any Loan Document and (ii) with respect to clause (d), customary provisions restricting assignment of any agreement entered into by the Borrower or any other Loan Party in the ordinary course of business.
Appears in 12 contracts
Sources: Term Loan Agreement (NETSTREIT Corp.), Credit Agreement (NETSTREIT Corp.), Credit Agreement (NETSTREIT Corp.)
Restrictions on Intercompany Transfers. The Borrower Parent and the Loan Parties shall not, and shall not permit any Subsidiary (other Loan Party than an Excluded Subsidiary) to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Loan Party Subsidiary to: (a) pay dividends or make any other distribution on any of such Loan PartySubsidiary’s capital stock or other Equity Interests owned by the Borrower any Loan Party or any Loan PartySubsidiary; (b) pay any Indebtedness owed to the Borrower or any Loan PartyParty or Subsidiary; (c) make loans or advances to the Borrower or any Loan PartyParty or Subsidiary; or (d) transfer any of its property or assets to the Borrower or any Loan PartyParty or Subsidiary; other than (i) with respect to clauses (a) through (d) those encumbrances or restrictions contained in any Loan Document and Document, or (ii) with respect to clause (d), customary provisions restricting assignment of any agreement entered into by the Borrower or any other Loan Party or Subsidiary in the ordinary course of business.
Appears in 3 contracts
Sources: Lender Addition and Acknowledgment Agreement and First Amendment to Amended and Restated Credit Agreement (Smith Douglas Homes Corp.), Credit Agreement (Smith Douglas Homes Corp.), Credit Agreement (Smith Douglas Homes Corp.)