Common use of Limitations on Sale and Lease-Back Clause in Contracts

Limitations on Sale and Lease-Back. For so long as substantially comparable covenants are provided for the benefit of any of the Company’s outstanding debt with which the Securities rank equally, the Company will not, and will not permit any Restricted Subsidiary to, sell or transfer (except to the Company or one or more Restricted Subsidiaries, or both) any Principal Property owned by it and which has been in full operation for more than 180 days prior to such sale or transfer with the intention (i) of taking back a lease on such property, except a lease for a temporary period (not exceeding 36 months), and (ii) that the use by the Company or such Restricted Subsidiary of such property will be discontinued on or before the expiration of the term of such lease (any such transaction being herein referred to as a “Sale and Lease-Back Transaction”), unless:

Appears in 2 contracts

Samples: Indenture (Meritor Inc), Indenture (Arvinmeritor Inc)

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Limitations on Sale and Lease-Back. For so long as substantially comparable covenants are provided for the benefit of any of the (NY) 20543/090/INDENTURE/arm.indenture.doc Company’s outstanding debt with which the Securities rank equally, the Company will not, and will not permit any Restricted Subsidiary to, sell or transfer (except to the Company or one or more Restricted Subsidiaries, or both) any Principal Property owned by it and which has been in full operation for more than 180 days prior to such sale or transfer with the intention (i) of taking back a lease on such property, except a lease for a temporary period (not exceeding 36 months), and (ii) that the use by the Company or such Restricted Subsidiary of such property will be discontinued on or before the expiration of the term of such lease (any such transaction being herein referred to as a “Sale and Lease-Back Transaction”), unless:

Appears in 1 contract

Samples: Indenture (Arvinmeritor Inc)

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Limitations on Sale and Lease-Back. For so long as substantially comparable covenants are provided for the benefit of any of the Company’s outstanding debt with which the Securities Notes rank equally, the Company will not, and will not permit any Restricted Subsidiary to, sell or transfer (except to the Company or one or more Restricted Subsidiaries, or both) any Principal Property owned by it and which has been in full operation for more than 180 days prior to such sale or transfer with the intention (i) of taking back a lease on such property, except a lease for a temporary period (not exceeding 36 months), and (ii) that the use by the Company or such Restricted Subsidiary of such property will be discontinued on or before the expiration of the term of such lease (any such transaction being herein referred to as a “Sale and Lease-Back Transaction”), unless:

Appears in 1 contract

Samples: Indenture (Meritor Inc)

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