Common use of Negative Equity (Unterbilanz Clause in Contracts

Negative Equity (Unterbilanz. Each Finance Party agrees that the enforcement of the Guarantee given by a German Guarantor shall be limited if and to the extent the German Guarantor demonstrates that such enforcement would reduce the German Guarantor’s net assets (Nettorvermögen) (the Net Assets) to an amount less than its stated share capital (Stammkapital) or (if its Net Assets are already lower than its stated share capital) causing such amount to be further reduced, and thereby affects the German Guaran-tor’s assets which are required for the obligatory preservation of its stated share capital according to section 30 GmbHG (a Capital Impairment).

Negative Equity (Unterbilanz. Each Finance Party agrees that the enforcement of the Guarantee given by a German Guarantor shall be limited if and to the extent the German Guarantor demonstrates that such enforcement would reduce the German Guarantor’s net assets (Nettorvermögen) (the Net Assets) to an amount less than its stated share capital (Stammkapital) or (if its Net Assets are already lower than its stated share capital) causing such amount to be further reduced, and thereby affects the German Guaran-torGuarantor’s assets which are required for the obligatory preservation of its stated share capital according to section 30 GmbHG (a Capital Impairment).