Restrictions on Indebtedness Clause Samples
The "Restrictions on Indebtedness" clause limits a party’s ability to incur new debt or financial obligations during the term of an agreement. Typically, this clause outlines specific thresholds or conditions under which additional borrowing is permitted, such as requiring lender consent for loans above a certain amount or prohibiting certain types of debt altogether. Its core function is to protect the interests of the other party—often a lender or investor—by preventing excessive leverage that could jeopardize the borrower’s financial stability or the value of collateral.
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Restrictions on Indebtedness. None of the Borrowers will, and will not permit any of its Subsidiaries to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:
(a) Indebtedness to the Lenders and the Administrative Agent arising under any of the Loan Documents;
(b) endorsements for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business;
(c) Indebtedness in respect of any Derivative Contracts in the ordinary course of business;
(d) Existing Senior Debt, and refundings, replacements or refinancings thereof; provided that no such refunding or refinancing shall shorten the maturity or weighted average life to maturity or increase the principal amount of any of the Existing Senior Debt;
(e) Indebtedness of BGI’s domestic Subsidiaries that are Guarantors not to exceed $10,000,000, including such Indebtedness outstanding on the Closing Date;
(f) Indebtedness of BGI’s foreign Subsidiaries not to exceed in the aggregate for all such foreign Subsidiaries $100,000,000, including such Indebtedness outstanding on the Closing Date but excluding Indebtedness under the Loan Documents; provided that the Borrowers are in current compliance with and, after giving effect to the proposed incurrence of Indebtedness, will continue to be in compliance with all of the covenants in §§9 and 10 hereof as if the transaction occurred on the first day of the period of measurement;
(g) Indebtedness of the Borrowers or any Subsidiary that is a Guarantor that constitutes a Synthetic Lease or Capitalized Lease or otherwise incurred to finance the acquisition of fixed or capital assets (other than pursuant to Sale Leaseback Transactions referred to in §9.1(n), whether pursuant to a loan, financing lease or otherwise) in an aggregate principal amount not to exceed $30,000,000 at any time outstanding;
(h) Indebtedness of the Borrowers or any Subsidiary that is a Guarantor in respect of Subordinated Debt;
(i) Indebtedness of the Borrowers owing to any Subsidiary of such Borrower that is a Guarantor which is expressly subordinated to the prior payment in full in cash of all Obligations on terms disclosed to and reasonably acceptable to the Administrative Agent prior to the incurrence thereof;
(j) Indebtedness of a Person outstanding at the time it is first acquired by any of the Borrowers in an acquisition permitted pursuant to §9.5.1(g), provided that any such Indebtedness w...
Restrictions on Indebtedness. Credit Parties shall not, and shall not permit any Subsidiary to, create, incur, assume, or suffer to exist any Indebtedness or guaranty, assume, endorse, or otherwise become responsible for the obligations of any other Person, except:
(a) the Obligations;
(b) Indebtedness outstanding as of the date hereof and reflected on Schedule 9.8(b) hereto and any refinancing thereof on substantially similar terms ("Permitted Other Indebtedness");
(c) Indebtedness incurred in connection with the acquisition after the date hereof of any real or personal property by any Credit Party (other than obligations under Capitalized Leases) provided that as of any date of determination, the aggregate amount thereof shall not exceed the aggregate cumulative amount of Capital Expenditures permitted to Credit Parties hereunder through such date;
(d) guarantees of the Obligations by any Subsidiary of a Credit Party;
(e) Indebtedness consisting of Credit Party Intercompany Indebtedness, provided that: (i) such Credit Party Intercompany Indebtedness is evidenced by the Intercompany Note (which Intercompany Note shall be pledged and delivered to Lender as additional collateral security for the Obligations); (ii) each Credit Party shall record all intercompany transactions on its books and records in a manner reasonably satisfactory to Lender; (iii) the obligations of each Credit Party under the Intercompany Note shall be subordinated to the Obligations of such Credit Party hereunder in a manner reasonably satisfactory to Lender; (iv) at the time any such intercompany loan or advance is made by any Credit Party to any other Credit Party and after giving effect thereto, each such Credit Party shall be Solvent; (v) no Default or Event of Default would occur and be continuing after giving effect to any such proposed intercompany loan; and (vi) no Credit Party may repay, either directly or indirectly, nor shall any PMG Credit Party accept or retain any payment in respect of, all or any portion of any intercompany account owing by Holdings or any Management Credit Party to any PMG Credit Party in respect of any transfer of goodwill by any PMG Credit Party to Holdings or any Management Credit Party without the prior written approval of Lender.
(f) obligations under Capitalized Leases to the extent permitted under Section 10.1 hereof.
Restrictions on Indebtedness. The Borrower will not, nor will it permit any of its Material Subsidiaries to, issue, incur, assume, create, become liable for, contingently or otherwise, or have outstanding any Indebtedness, provided that the foregoing provisions shall not restrict nor operate to prevent the following Indebtedness:
(a) the Obligations;
(b) any other Indebtedness so long as after giving effect to the incurrence thereof the Borrower shall be in compliance with the Leverage Ratio set forth in Section 7.15.
Restrictions on Indebtedness. 58 9.2. Restrictions on Liens. ..............................................................59 9.3.
Restrictions on Indebtedness. The Credit Parties will not create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:
(i) Indebtedness to the Lenders arising under any of the Loan Documents and Hedge Obligations to a Lender Hedge Provider;
(ii) Unsecured Indebtedness provided that the Credit Parties remain in compliance with the covenants set forth in §9 after incurring such Indebtedness;
(iii) current liabilities of the Credit Parties incurred in the ordinary course of business, including but not limited to short term unsecured financing arrangements not to exceed $500,000 in the aggregate at any time, but not incurred through (i) the borrowing of money, or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in connection with normal purchases of goods and services;
(iv) Indebtedness in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the extent that payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8;
(v) Indebtedness in respect of judgments only to the extent, for the period and for an amount not resulting in an Event of Default;
(vi) endorsements for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business;
(vii) Indebtedness incurred to any other landowners, government or quasi-government or entity or similar entity in the ordinary course of business in connection with the construction or development of any Real Estate, including, without limitation, subdivision improvement agreements, development agreements, reimbursement agreements, infrastructure development agreements, agreements to construct or pay for on-site or off-site improvements and similar agreements incurred in the ordinary course of business in connection with the development of Real Estate or construction of infrastructure in connection therewith; and
(viii) Other Indebtedness of the REIT Guarantor and the Borrower (but not any other Credit Party), including in connection with customary recourse carve-outs and environmental indemnifications related to Indebtedness incurred by Subsidiaries (other than any Subsidiary Guarantor) of the REIT Guarantor, provided the REIT Guarantor and the Borrower remain in compliance with the covenants set forth in §§9.1 through 9.5 after incurring such Indebtedness. The fo...
Restrictions on Indebtedness. The Borrower shall not directly or indirectly create, incur, assume, permit, suffer to exist or otherwise be or become liable with respect to any Indebtedness except for the Permitted Indebtedness.
Restrictions on Indebtedness. The Borrower will not, and will not permit any Guarantor or their respective Subsidiaries to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:
Restrictions on Indebtedness. (a) None of the Rig Owners shall incur, create or permit to subsist any Financial Indebtedness other than as incurred under the Finance Documents.
(b) The restrictions in paragraph (a) above do not apply to;
Restrictions on Indebtedness. The Borrower will not, and will not ---------------------------- permit any of its Subsidiaries to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:
(a) Indebtedness to the Banks and the Agent arising under any of the Loan Documents;
(b) endorsements for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business;
(c) Subordinated Debt in an amount and on terms and conditions approved by the Majority Banks in writing;
(d) Indebtedness incurred in connection with the acquisition after the date hereof of any real or personal property by the Borrower or such Subsidiary or under any Capitalized Lease, provided that the aggregate -------- principal amount of such Indebtedness of the Borrower and its Subsidiaries shall not exceed the aggregate amount of $5,000,000 at any one time;
(e) Indebtedness existing on the date hereof and listed and described on Schedule 10.1 hereto; -------- ----
(f) Indebtedness of any Guarantor to the Borrower or of the Borrower to any Guarantor so long as such Guarantor remains a Guarantor hereunder, has otherwise complied with the provisions of (S)
7.1 hereof and remains a Subsidiary of the Borrower;
Restrictions on Indebtedness. Neither Borrower will, nor will it permit any of its Subsidiaries to, issue, incur, assume, create, become liable for, contingently or otherwise, or have outstanding any Indebtedness, provided that the foregoing provisions shall not restrict nor operate to prevent the following Indebtedness:
(a) the Obligations;
(b) any other Indebtedness so long as after giving effect to the incurrence thereof the Borrowers shall be in compliance with the Leverage Ratio set forth in Section 7.15, provided that intercompany loans owing by a Borrower are permitted only so long as such loans are subordinated to the Obligations on terms reasonably satisfactory to the Administrative Agent.