Parent as Passive Entity Clause Samples

Parent as Passive Entity. Notwithstanding anything to the contrary in this Guaranty or any other Loan Document, the Guarantor shall not (A) conduct, transact, or otherwise engage in, or commit to conduct, transact or otherwise engage in, any business or operations other than those incidental to its ownership of the Equity Interests of the Borrower, (B) incur, create, assume or suffer to exist any Liens or Indebtedness, except pursuant to the Loan Documents to which it is a party or (C) own, lease, manage or otherwise operate any properties or assets other than the ownership of the Equity Interests of Borrower.