Intercompany Note Proceeds Loans Clause Samples
The "Intercompany Note Proceeds Loans" clause establishes the terms under which proceeds from promissory notes issued between affiliated companies are treated as loans. Typically, this clause outlines how funds received by one group entity from another, via an intercompany note, are to be recorded and managed as a loan, including repayment terms, interest, and documentation requirements. By clearly defining these arrangements, the clause ensures proper accounting treatment and legal clarity for intra-group financing, helping to prevent disputes and maintain compliance with financial regulations.
Intercompany Note Proceeds Loans. The Company shall, and shall cause its Restricted Subsidiaries to, ensure that:
(1) the Intercompany Note Proceeds Loans are subordinated in right of payment to the Guarantees provided by the Company’s Restricted Subsidiaries party thereto;
(2) the Company will receive interest payments under such Intercompany Note Proceeds Loans in amounts sufficient for the Company to make interest payments under the Notes as they become due; and
(3) the maturity date of such Intercompany Note Proceeds Loans will be same as the maturity date of the Notes.
Intercompany Note Proceeds Loans. The Company shall, and shall cause its Restricted Subsidiaries to, ensure that:
Intercompany Note Proceeds Loans. The Parent Guarantor shall, and shall cause its Restricted Subsidiaries to, ensure that:
(a) the Intercompany Note Proceeds Loans (if any) are subordinated in right of payment to the Guarantees provided by the Parent Guarantor’s Restricted Subsidiaries party thereto;
(b) the Company will receive interest payments under such Intercompany Note Proceeds Loans (if any) in amounts sufficient for the Company to make interest payments under the Notes as they become due; and
(c) the maturity date of such Intercompany Note Proceeds Loans (if any) will be same as the maturity date of the Notes.