Owned Restricted Subsidiary Sample Clauses

The "Owned Restricted Subsidiary" clause defines a specific type of subsidiary that is both owned by the parent company and subject to certain restrictions, typically outlined in a debt agreement or indenture. This clause clarifies which subsidiaries are considered "restricted"—often those whose activities, asset transfers, or incurrence of debt are limited to protect the interests of creditors or investors. By clearly identifying these entities, the clause ensures that the parent company cannot circumvent financial covenants or risk controls by shifting assets or liabilities to less regulated subsidiaries, thereby maintaining the integrity of the agreement’s protections.