Unsecured Indebtedness Subsidiary Guarantee Requirement Sample Clauses
The Unsecured Indebtedness Subsidiary Guarantee Requirement clause mandates that certain subsidiaries of a borrower must provide guarantees for the borrower's unsecured debt. In practice, this means that if the parent company incurs unsecured loans or notes, its subsidiaries are required to guarantee repayment of those obligations, often subject to specific thresholds or exceptions outlined in the agreement. This clause ensures that lenders have additional recourse to subsidiary assets, thereby reducing their risk and enhancing the creditworthiness of the overall borrowing group.
Unsecured Indebtedness Subsidiary Guarantee Requirement. Not later than (A) the date on which any Subsidiary of the Company becomes an Unsecured Indebtedness Subsidiary in respect of Indebtedness in an aggregate principal amount of $10,000,000 or more or (B) the thirtieth (30th) day following the Required Delivery Date for any fiscal quarter in which any Subsidiary of the Company becomes an Unsecured Indebtedness Subsidiary in respect of Indebtedness in an aggregate principal amount of less than $10,000,000 (in each case, or such later date as the Administrative Agent shall reasonably determine), the Company shall cause such Unsecured Indebtedness Subsidiary to become a Guarantor and deliver or cause to be delivered to the Administrative Agent the applicable Subsidiary Guaranty Documents. Notwithstanding anything to the contrary in this Section 8.14.(a) or otherwise in this Agreement, in no event shall any Excluded Subsidiary or Foreign Subsidiary (other than a Subsidiary Borrower) be required to become a Guarantor.
Unsecured Indebtedness Subsidiary Guarantee Requirement. In addition to, and without limiting the requirements in Section 8.14(a), not later than the date on which any Subsidiary of the Parent Guarantor becomes an Unsecured Indebtedness Subsidiary (or such later date as the Administrative Agent shall reasonably determine), the Parent Guarantor and the Borrower shall cause such Unsecured Indebtedness Subsidiary to become a Guarantor and deliver or cause to be delivered to the Administrative Agent the applicable Subsidiary Guaranty and Pledge Documents.