Common use of Concentration Limits Clause in Contracts

Concentration Limits. The Issuer will not sell, purchase, otherwise take any Affirmative Issuer Action that would result, immediately after giving effect to such action, in noncompliance with the Concentration Limits; provided, that the foregoing restriction shall not apply to the renewal by the Issuer of an Existing Lease. Also, the Issuer will not consummate a Permitted Discretionary Sale if the effect of such action is or would be to cause noncompliance with any Concentration Limit. For the avoidance of doubt, noncompliance with any Concentration Limit that results from the Total Loss of Portfolio Railcars shall not constitute a breach of this covenant. Notwithstanding the foregoing, where the merger or consolidation of one or more Lessees results in an aggregate Adjusted Value that exceeds the Customer Concentration Limitation, the Issuer will not be obligated to address such noncompliance, however, additional Portfolio Railcars leased to such Lessee may not be purchased by the Issuer unless, upon purchase, the Adjusted Value of the Issuers’ Portfolio Railcars leased to such individual Lessee will meet the applicable Customer Concentration Limitation.

Concentration Limits. The Issuer will not sell, purchase, otherwise take any Affirmative Issuer Action that action with respect to any Portfolio Railcar if entering into such proposed sale, or other action would result, immediately after giving effect cause the Portfolio to such action, in noncompliance no longer comply with the Concentration Limits; provided, that the foregoing restriction shall not apply to the renewal by the Issuer of an Existing Lease. Also, the Issuer will not consummate a Permitted Discretionary Sale if the effect of such action is or would be to cause noncompliance with any Concentration Limit. For the avoidance of doubt, noncompliance with any Concentration Limit that results from the Total Loss of Portfolio Railcars shall not constitute a breach of this covenant. Notwithstanding the foregoing, where the merger or consolidation of one or more Lessees results in an aggregate Adjusted Value that exceeds the Customer Concentration Limitation, the Issuer Issuers will not be obligated to address such noncompliance, however, additional Portfolio Railcars leased to such Lessee may not be purchased by the Issuer Issuers unless, upon purchase, the Adjusted Value of the Issuers’ Portfolio Railcars leased to such individual Lessee will meet the applicable Customer Concentration Limitation.