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provided, -------- however, that the aggregate amount of such Indebtedness, when taken together ------- with all other Indebtedness Incurred pursuant to this clause (1) and then outstanding, does not exceed the remainder of (x) $50 million minus (y) the sum of all principal payments with respect to the permanent retirement of such Indebtedness pursuant to Section 4.06(a)(ii)(A);", "samples": [{"hash": "fENGqTobFrT", "uri": "/contracts/fENGqTobFrT#indebtedness-incurred", "label": "Indenture (21st Century Telecom Group Inc)", "score": 18.0, "published": true}], "size": 1, "snippet_links": [{"key": "pursuant-to-the-credit-agreement", "type": "clause", "offset": [0, 32]}, {"key": "aggregate-amount", "type": "definition", "offset": [71, 87]}, {"key": "when-taken", "type": "clause", "offset": [110, 120]}, {"key": "other-indebtedness", "type": "clause", "offset": [147, 165]}, {"key": "this-clause", "type": "clause", "offset": [187, 198]}, {"key": "sum-of", "type": "clause", "offset": [288, 294]}, {"key": "principal-payments", "type": "definition", "offset": [299, 317]}, {"key": "with-respect-to", "type": "clause", "offset": [318, 333]}, {"key": "permanent-retirement", "type": "definition", "offset": [338, 358]}, {"key": "pursuant-to-section", "type": "clause", "offset": [380, 399]}], "hash": "9deabc46302b9250f0f06d8378e6df4e", "id": 10}], "next_curs": "Cl4SWGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjoLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih5pbmRlYnRlZG5lc3MtaW5jdXJyZWQjMDAwMDAwMGEMogECZW4YACAA", "clause": {"title": "Indebtedness incurred", "size": 41, "children": [["", ""], ["commitment-to-make-revolving-credit-loans-and-support-letters-of-credit", "Commitment to Make Revolving Credit Loans and Support Letters of Credit"], ["unused-line-fee", "Unused Line Fee"], ["making-of-revolving-credit-loans", "Making of Revolving Credit Loans"], ["the-loan-account", "The Loan Account"]], "parents": [["limitation-on-indebtedness", "Limitation on Indebtedness"], ["covenants", "Covenants"], ["negative-covenants", "NEGATIVE COVENANTS"], ["indebtedness", "Indebtedness"], ["miscellaneous", "Miscellaneous"]], "id": "indebtedness-incurred", "related": [["company-indebtedness", "Company Indebtedness", "Company Indebtedness"], ["other-debt", "Other Debt", "Other Debt"], ["indebtedness", "Indebtedness", "Indebtedness"], ["permitted-indebtedness", "Permitted Indebtedness", "Permitted Indebtedness"], ["indebtedness-secured", "Indebtedness Secured", "Indebtedness Secured"]], "related_snippets": [], "updated": "2025-12-01T05:47:10+00:00", "also_ask": ["What limitations or carve-outs should be negotiated to allow for operational flexibility?", "Which definitions of 'Indebtedness' are most advantageous or risky for our position?", "How can we draft to prevent reclassification of permitted debt as default-triggering?", "What are the most common enforceability challenges to these clauses in court?", "How does this clause compare to market standards in similar transactions?"], "drafting_tip": "Define 'Indebtedness' precisely to avoid ambiguity; specify permitted and prohibited types to ensure clarity; require prior written consent for exceptions to maintain lender control.", "explanation": "The \"Indebtedness incurred\" clause defines the circumstances under which a party is permitted to take on new debt during the term of an agreement. Typically, this clause outlines what types of borrowing are allowed, such as loans, credit lines, or other financial obligations, and may set limits on the amount or purpose of such indebtedness. By specifying these parameters, the clause helps prevent excessive or unauthorized borrowing that could jeopardize the financial stability of the parties involved, thereby protecting the interests of lenders or other stakeholders."}, "json": true, "cursor": ""}}