No New Indebtedness Clause Samples
The "No New Indebtedness" clause prohibits a party, typically the borrower in a financial agreement, from incurring any additional debt beyond what is already disclosed or permitted under the contract. In practice, this means the borrower cannot take out new loans, issue bonds, or otherwise create new financial obligations without the lender's prior written consent. This clause is designed to protect the lender by ensuring the borrower's financial position does not deteriorate due to increased liabilities, thereby reducing the risk of default and preserving the lender's security.
No New Indebtedness. The Borrower specifically acknowledges and ------------------- agrees that this Agreement shall not represent in any way the extension of any new credit by the Bank to the Borrower, or the satisfaction of any indebtedness evidenced by the Credit Agreement as amended hereby or the Note.
No New Indebtedness. (a) The Borrowers and YE hereby acknowledge and agree that the YE Note evidences the same indebtedness as the promissory notes evidencing the Purchased Loans (the “Original Notes”) and substitute for the Original Notes without any novation, cancellation, extinguishment, payment or satisfaction thereof, except as provided in this Agreement, including forgiveness of debt and change to the interest rate. The Original Notes have been superseded in their entirety by the YE Note. Nothing contained in this Agreement or in the YE Note shall:
(i) be deemed to cancel, extinguish, or constitute payment or satisfaction of the indebtedness secured by the Guarantee and Collateral Agreement or other Loan Documents or evidenced by the Original Notes;
(ii) give rise to any defense, set-off, right of recoupment, claim or counterclaim with respect to any of the Borrowers’ obligations under the Loan Documents or the Original Notes;
(iii) constitute a new or additional indebtedness or constitute a novation as to Borrowers’ obligations under the Original Notes or the Loan Documents;
(iv) constitute a re-advance of a loan; or
(v) evidence any principal indebtedness other than the same principal indebtedness evidenced by the Original Notes and secured by the Guarantee and Collateral Agreement and the other Loan Documents.
(b) The Borrowers hereby (i) ratify and confirm the lien and security interests contained in and created by the Guarantee and Collateral Agreement and the other Loan Documents, and (ii) agree that nothing contained in this Agreement is intended to or shall impair the liens or security interests contained in and created by the Guarantee and Collateral Agreement and the other Loan Documents, which continues to secure the Modified Purchased Loans.
No New Indebtedness. No Seller shall, nor permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness other than the Indebtedness already incurred as of the Amendment No. 10 Effective Date; provided, that additional Indebtedness may be incurred by Sellers or any of their Subsidiaries so long as the following conditions are satisfied: (i) to the extent that the Indebtedness is incurred in connection with a Permitted Disposition, the Net Proceeds of such Permitted Disposition are applied in accordance to Section 4.07(a), (ii) to the extent that such new Indebtedness is unsecured (and subordinate to all obligations owed by the applicable Seller under any Secured Plan Facility or the Senior Unsecured Facility) or incurred through the pledge of unencumbered assets, 100% of the Net Proceeds of such Indebtedness are deposited in the CT Cash Account and (iii) to the extent that such new Indebtedness is recourse Indebtedness, only to the extent that it replaces existing recourse Indebtedness or is subordinate to all obligations owed to Buyer (and to the extent such new Indebtedness is not subject to clause (i) above, 100% of the Net Proceeds of such Indebtedness are deposited in the CT Cash Account).
No New Indebtedness. Maximum Principal Amount. (a) The parties hereto hereby certify that this Modification and Extension Agreement secures the same indebtedness evidenced by the Notes, together with interest thereon, and secured by this Restated Mortgage, and evidences and secures no further or other indebtedness or obligation.
No New Indebtedness. The Borrowers specifically acknowledge and agree that this Agreement shall not represent in any way the extension of any additional credit by the Banks to the Borrowers, or the satisfaction of any indebtedness evidenced by Loan Documents or the Credit Agreement as amended hereby. The Borrowers further acknowledge that there are no outstanding Standby Facility Loans, the Standby Facility Commitment has expired, and no Standby Facility Loans are available to the Borrowers under the Credit Agreement.
No New Indebtedness. Neither the Company nor Seller or behalf of the Company will incur any new indebtedness or other obligations or commitments following the execution of this Agreement.
No New Indebtedness. Prior to the earliest of: (i) the Maturity Date (as set forth in the Note) or (ii) the payment in full of all obligations pursuant to the Note, the Company shall not without the consent of the Lender create, incur, assume or suffer to exist new indebtedness which is senior in priority of payment to the Note; provided, however, that such limitation shall not apply to unsecured trade debt incurred in the ordinary course of the Company's business.
No New Indebtedness. Prior to the earliest of: (i) the Maturity Date (as set forth in the Note) or (ii) the payment in full of all obligations pursuant to the Note, the Company shall not without the consent of the Lender create, incur, assume or suffer to exist new Indebtedness which is senior or equal in priority of payment to the Note except for the Secured Promissory Notes. For purposes of hereof, “Indebtedness” means (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit (but excluding accounts payable in the ordinary course of business), (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, (d) any guarantees of, or other direct or indirect liability for the obligations of another person, and (e) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect against fluctuation in interest rates, currency exchange rates or commodity prices.
No New Indebtedness. BEC will not (a) enter into, create or assume any obligation for borrowed money except to the extent that such funding is provided by Seller in the ordinary course of business, or (b) assume, guarantee or otherwise become contractually liable for any financial obligation of any corporation or other entity other than BEC.