Indebtedness Securitization Transactions Sample Clauses

The "Indebtedness; Securitization Transactions" clause defines the rules and limitations regarding a party's ability to incur debt and engage in securitization activities. Typically, it outlines what types of indebtedness are permitted, sets thresholds or conditions for taking on new debt, and specifies how assets may be transferred or used in securitization structures, such as selling receivables to a special purpose vehicle. This clause serves to protect the interests of lenders or counterparties by preventing excessive leverage or asset transfers that could undermine the borrower's financial stability or the value of collateral.