Common use of Prohibited Restricted Payments Clause in Contracts

Prohibited Restricted Payments. During the existence of a Default or an Event of Default the Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend or other distribution (whether in cash, securities or other property) with respect to any ownership interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property) on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such ownership interests (including any sinking fund or similar deposit), or any option, warrant or other right to acquire any such ownership interests (“Restricted Payment”), except (a) the minimum amount of Restricted Payments required to be made in other to maintain Borrower’s REIT status, and (b) dividends payable by the Borrower solely in additional shares of common stock.