Common use of Limitation on Assets Clause in Contracts

Limitation on Assets. No Borrower will acquire Assets other than in compliance with its Operative Documents. No Borrower will: (i) commit to sell, assign, transfer or otherwise dispose of, (ii) sell, assign, transfer or otherwise dispose of, or (iii) designate in writing that an Asset is no longer an Eligible Asset, unless, in each of the foregoing cases, the Principal Obligations do not exceed the Available Commitment after giving effect thereto (including application of the proceeds of any such sale, assignment, transfer or other disposition) or sufficient replacement Collateral that satisfies the definition of Eligible Asset is pledged to Administrative Agent as determined in the sole discretion of Administrative Agent exercised in its commercially reasonable judgment.