Negative Pledge/WEST Sample Clauses
A Negative Pledge clause prohibits a borrower from granting security interests over its assets to other creditors without the consent of the lender. In practice, this means the borrower cannot use its assets as collateral for new loans or obligations, ensuring that the lender's position is not subordinated to future secured creditors. This clause is commonly used in unsecured loan agreements to protect the lender by maintaining their priority and reducing the risk that the borrower's assets will be encumbered, thereby preserving the lender's ability to recover funds in the event of default.
Negative Pledge/WEST. Not (i) cause or create Liens or Negative Pledges on Borrower’s interest in the WEST Subsidiaries or the WEST Administrative Agency Agreement and/or management fee arrangement with WEST under the Servicing Agreement (including, without limitation, any rights to payment thereunder) or (ii) permit any Lien on Borrower’s interest in the WEST Subsidiaries or the WEST Administrative Agency Agreement and/or management fee arrangement with WEST under the Servicing Agreement, other than Liens or Negative Pledges currently existing under the WEST Funding Facility provided such Liens or Negative Pledges shall not adversely affect such management agreement or Borrower’s interest therein.
Negative Pledge/WEST. Borrower shall not cause or permit Liens or Negative Pledges on the Borrower’s interest in the WEST Subsidiaries or the WEST Administrative Agency Agreement and/or management fee arrangement with WEST under the Servicing Agreement other than Liens or negative pledges currently existing under the WEST Funding Facility provided such Liens or Negative Pledges shall not adversely affect such management agreement or Borrower’s interest therein.
Negative Pledge/WEST. Not (i) cause or create any Liens or Negative Pledges on Borrower’s direct or indirect interest in the WEST Subsidiaries or the WEST Administrative Agency Agreement and/or management fee arrangement with WEST under the WEST Servicing Agreement (including without limitation, any rights to payment thereunder) or (ii) permit any Lien on Borrower’s direct or indirect interest in the WEST Subsidiaries or the WEST Administrative Agency Agreement and/or management fee arrangement with WEST under the WEST Servicing Agreement, other than, in each case (x) Liens or Negative Pledges then existing under the WEST Funding Facility provided such Liens or Negative Pledges shall not adversely affect such management agreement or Borrower’s interest therein and (y) the Liens and Negative Pledges permitted under Section 5 of that certain Amendment No. 1 to Fourth Amended and Restated Credit Agreement and Amendment No. 5 to Security Agreement dated as of December 13, 2019 among Borrower, Agents and the Lenders party thereto.”
Negative Pledge/WEST. Section 7.18 of the Credit Agreement shall be amended by deleting it in its entirety and inserting in lieu thereof the following: