Additional Recourse Indebtedness Clause Samples
The Additional Recourse Indebtedness clause defines the circumstances under which a borrower may incur additional debt that is subject to recourse, meaning the lender can pursue the borrower's personal assets in the event of default. Typically, this clause outlines specific limits or conditions for taking on new recourse obligations, such as requiring lender consent or restricting the total amount of such indebtedness. Its core function is to protect the lender by preventing the borrower from increasing their personal liability in a way that could jeopardize the lender’s ability to recover the loan, thereby managing risk and maintaining the agreed-upon credit profile.
Additional Recourse Indebtedness. Secured Recourse Indebtedness of REIT Guarantor, Borrower and their Subsidiaries and Unconsolidated Affiliates shall not exceed 10% of Total Asset Value at any time outstanding.
Additional Recourse Indebtedness. A. Recourse Indebtedness of the Consolidated Group $--------------------- B. Allocated Facility Amount $--------------------- C. $50,000,000 D. B plus C $--------------------- A must be less than or equal to D
Additional Recourse Indebtedness. Create, incur, assume or suffer to exist any Recourse Indebtedness of the Borrower, the REIT or any of their respective Subsidiaries provided, that (a) from the Closing Date to January 31, 1999, up to $241,400,000 of Recourse Indebtedness other than the Loans shall be permitted to be outstanding and (b) from and after January 31, 1999, up to $191,400,000 of Recourse Indebtedness other than the Loans shall be permitted to be outstanding and provided, further, that the amounts referred to in clauses (a) and (b) above shall be permanently reduced by the amount of any repayments or reductions of Recourse Indebtedness included therein.