TBC Consent to Subsidiary Borrower Borrowings and Notices Clause Samples
The 'TBC Consent to Subsidiary Borrower Borrowings and Notices' clause establishes the requirement for a specific party's consent before any subsidiary of the main borrower can take on additional borrowings or receive formal notices under the agreement. In practice, this means that subsidiaries must obtain approval from the designated party—often the lender or a parent company—before entering into new debt arrangements or being included in official communications related to the loan. This clause ensures that the lender or controlling entity maintains oversight and control over the financial activities and obligations of all subsidiaries, thereby managing risk and preventing unauthorized or potentially risky borrowing by affiliated entities.
TBC Consent to Subsidiary Borrower Borrowings and Notices. No Advances shall be made to a Subsidiary Borrower, and no Conversion of any Advances at the request of a Subsidiary Borrower shall be effective, without, in each and every instance, the prior consent of TBC, in its sole discretion, which shall be evidenced by the countersignature of TBC to the relevant Notice of Borrowing or notice of Conversion. In addition, no notices which are to be delivered by a Borrower hereunder shall be effective, with respect to any Subsidiary Borrower, unless the notice is countersigned by TBC.