Common use of Creation of New Debt Clause in Contracts

Creation of New Debt. The Company will not create, assume, or incur or become or at any time be liable in respect of, any Debt without the consent of the Purchaser, except: (a) Debt outstanding on the date hereof to the extent reflected on the most recent balance sheet of the Company or incurred in the ordinary course of business thereafter; (b) Debt incurred pursuant to the Company's existing line of credit facility with BA Associates originated November 9, 1998, under which the Company may borrow from time to time up a maximum of $1,100,000, as referenced in Section 3(v) of the Disclosure Schedule; (c) Debt incurred in permitted real estate investments; and (d) purchase money security interests not to exceed $250,000 per year. Notwithstanding the foregoing provisions of this Section 4.h.ii the Company will not, without the consent of the Purchaser, create, assume, or incur, or become or at any time be liable in respect of, any Debt for money borrowed, advances made, or goods purchased, if the Purchaser, the Person making such advances, or the vendor of such goods (or any Person who guarantees or becomes surety for all or any part of such Debt or acquires any right or incurs any obligation to become, either immediately or upon the occurrence of some future contingency, the owner of all or any part thereof) shall have any right, by reason of any statute or otherwise, to have any claim in respect of such Debt first satisfied out of the general assets of the Company in priority to the claims of its general creditors.

Creation of New Debt. The Company will not create, assume, or incur or become or at any time be liable in respect of, any Debt without the consent of the PurchaserPurchasers, except: (a) Debt outstanding on the date hereof to the extent reflected on the most recent balance sheet of the Company or incurred in the ordinary course of business thereafter; (b) Debt incurred pursuant to the Company's existing line of credit facility with BA Associates originated November 9, 1998, under which the Company may borrow from time to time up a maximum of $1,100,000, as referenced in Section 3(v) of the Disclosure Schedule; (c) Debt incurred in permitted real estate investments; and (d) purchase money security interests not to exceed $250,000 per year. Notwithstanding the foregoing provisions of this Section 4.h.ii the Company will not, without the consent of the Purchaser, create, assume, or incur, or become or at any time be liable in respect of, any Debt for money borrowed, advances made, or goods purchased, if the Purchaser, the Person making such advances, or the vendor of such goods (or any Person who guarantees or becomes surety for all or any part of such Debt or acquires any right or incurs any obligation to become, either immediately or upon the occurrence of some future contingency, the owner of all or any part thereof) shall have any right, by reason of any statute or otherwise, to have any claim in respect of such Debt first satisfied out of the general assets of the Company in priority to the claims of its general creditors.