Inspection of Unencumbered Assets and Books Sample Clauses
The 'Inspection of Unencumbered Assets and Books' clause grants a party the right to review and examine the other party's assets that are free of liens or claims, as well as their financial records and documentation. In practice, this may involve scheduled audits, on-site visits, or requests for documentation to verify the status and value of unencumbered assets. This clause is essential for ensuring transparency and verifying that assets are available and unclaimed, thereby reducing the risk of undisclosed liabilities or misrepresentation in a transaction.
Inspection of Unencumbered Assets and Books. The Borrowers will permit Agent and Lenders, at the Borrowers’ expense (subject to the limitation set forth below) and upon reasonable prior notice, to visit and inspect any of the Unencumbered Assets during normal business hours, to examine the books of account of the Borrowers (and to make copies thereof and extracts therefrom) and to discuss the affairs, finances and accounts of the Borrowers with, and to be advised as to the same by, their respective officers, partners or members, all at such reasonable times and intervals as Agent may reasonably request, provided that so long as no Event of Default shall have occurred and be continuing, the Borrowers shall not be required to pay for such visits and inspections more often than once in any twelve (12) month period. Agent shall use good faith efforts to coordinate such visits and inspections so as to minimize the interference with and disruption to the normal business operations of the Borrowers.