Debt Limits. (Section 6.01): Purchase Money Debt Limit- $0 Subordinated Debt Limit- $0 Unsecured Debt Limit- $0
Debt Limits. The Borrower will not permit any Restricted Subsidiary to create, assume, incur or otherwise become liable with respect to (collectively, "incur") any Debt, other than: a) Debt secured by a mortgage, pledge or lien which is permitted to such Restricted Subsidiary under the provisions of Section 6.01, b) Debt owed to the Borrower or any other Restricted Subsidiary, c) Debt of a Person existing at the time it becomes a Restricted Subsidiary (unless such Person becomes a Restricted Subsidiary by virtue of (A) the classification or successive classification of such Person as a Restricted Subsidiary by the Board of Directors of Borrower or (B) the transfer of a Principal Plant to such Person by the Borrower or a Restricted Subsidiary), which Debt was not incurred in connection with or contemplation of becoming a Restricted Subsidiary, d) Debt created in connection with, or with a view to, compliance by such Restricted Subsidiary with the requirements of any program, law, statute or regulation of any federal, state or local governmental authority, which is applicable to such Restricted Subsidiary and which provides material financial or tax benefits to such Restricted Subsidiary which are not available to the Borrower or are available to the Borrower only on terms which the Borrower's Board of Directors determines are not as favorable as those available to the Restricted Subsidiary, e) guarantees existing at the Effective Date of this Agreement, f) guarantees and co-obligations of Debt with respect to which the Borrower is directly liable, and g) extensions, renewals or replacements of any Debt referred to in clauses (i) to (vi), inclusive, above, and any subsequent refinancings of such Debt, provided that the amount of Debt secured by such extension, renewal, replacement or subsequent refinancing shall not exceed the principal amount of Debt being extended, renewed, replaced or subsequently refinanced. 2.
Debt Limits. Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement, any supplemental financing contemplated under Section 2.20,Borrower agrees not to incur or assume indebtedness for borrowed money, including capital leases and further agrees not to sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber the Property or any of Borrower’ assets. Until the Loan and all interest accrued on it has been satisfied in full as required under the terms of the Note without the prior written consent of Lender, Borrower agrees not to create or incur or suffer to be created or incurred, or to exist, any lien or encumbrance upon the Property.
