Compliance by the Credit Parties Clause Samples
The "Compliance by the Credit Parties" clause requires all parties receiving credit under an agreement to adhere to specified obligations, laws, and covenants outlined in the contract. In practice, this means that borrowers and any guarantors must maintain compliance with financial reporting requirements, operational standards, and legal regulations throughout the term of the agreement. This clause ensures that lenders have assurance of responsible conduct by the credit parties, thereby reducing the risk of default and protecting the lender’s interests.
Compliance by the Credit Parties with Section 8.11 of the Credit Agreement is waived to the extent necessary for the Credit Parties to satisfy the condition precedent to the effectiveness of this Agreement set forth in Section 9(b)(iii).
Compliance by the Credit Parties with the provisions hereof and Credit Events contemplated hereby will not involve any non-exempt prohibited transaction within the meaning of ERISA or Section 4975 of the Code. Except as could not reasonably be expected to have a Material Adverse Effect, the Credit Parties, their Subsidiaries and each ERISA Affiliate (i) has fulfilled all obligations under the minimum funding standards of ERISA and the Code with respect to each Plan that is not a Multi-Employer Plan or a Multiple Employer Plan, (ii) has satisfied all contribution obligations in respect of each Multi-Employer Plan and each Multiple Employer Plan, (iii) is in compliance in all material respects with all other applicable provisions of ERISA and the Code with respect to each Plan, each Multi-Employer Plan and each Multiple Employer Plan, and (iv) has not incurred any liability under Title IV of ERISA to the PBGC with respect to any Plan, any Multi-Employer Plan, any Multiple Employer Plan, or any trust established thereunder. No Plan or trust created thereunder has been terminated, and there have been no Reportable Events, with respect to any Plan or trust created thereunder or with respect to any Multi-Employer Plan or Multiple Employer Plan, which termination or Reportable Event could reasonably be expected to have Material Adverse Effect. No Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate is at the date hereof, or has been at any time within the five years preceding the date hereof, an employer required to contribute to any Multi-Employer Plan or Multiple Employer Plan, or a “contributing sponsor” (as such term is defined in Section 4001 of ERISA) in any Multi-Employer Plan or Multiple Employer Plan. No Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate has any contingent liability with respect to any post-retirement “welfare benefit plan” (as such term is defined in ERISA) except as has been disclosed to the Administrative Agent and the Lenders in writing.
Compliance by the Credit Parties with Section 8.10 of the Credit Agreement is waived to the extent necessary for the Parent to amend its Articles or Certificate of Incorporation, if necessary, to provide for the issuance of additional common and/or preferred stock in order to satisfy the condition precedent to the effectiveness of this Agreement set forth in Section 9(b)(iii).
Compliance by the Credit Parties with Section 7.12 of the Credit Agreement is waived as to the periods ending on or before October 3, 1998.