Restrictions on Ability of Subsidiaries to Pay Dividends. The Borrower shall not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (i) pay any dividends or make any other distributions on its Capital Stock or any other interest or (ii) make or repay any loans or advances to the Borrower or the parent of such Subsidiary.
Appears in 4 contracts
Samples: Credit Agreement (Airborne Freight Corp /De/), Credit Agreement (Gerber Scientific Inc), Credit Agreement (Gerber Scientific Inc)
Restrictions on Ability of Subsidiaries to Pay Dividends. The Borrower shall not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (i) pay any dividends or make any other distributions on its Capital Stock or any other interest or (ii) make or repay any loans or advances to made by the Borrower or the parent of any other Subsidiary to such Subsidiary.
Appears in 2 contracts
Samples: Loan and Security Agreement (Atlantic Coast Airlines Holdings Inc), 364 Day Credit Agreement (Liberty Corp)
Restrictions on Ability of Subsidiaries to Pay Dividends. The Borrower shall not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (i) pay any dividends or make any other distributions on its Capital Stock or any other interest (other than dividends paid or payable in the form of additional Capital Stock) or (ii) make or repay any loans or advances to the Borrower or the parent of such Subsidiary.
Appears in 2 contracts
Samples: Credit Agreement (Culp Inc), Credit Agreement (Culp Inc)
Restrictions on Ability of Subsidiaries to Pay Dividends. The Borrower Borrowers shall not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (i) pay any dividends or make any other distributions on its Capital Stock or any other interest or (ii) make or repay any loans or advances to the Borrower Borrowers or the parent of such Subsidiary.
Appears in 2 contracts
Samples: Credit Agreement (Sed International Holdings Inc), Credit Agreement (Southern Electronics Corp)
Restrictions on Ability of Subsidiaries to Pay Dividends. The Borrower shall not permit Permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (ia) pay any dividends or make any other distributions on its Capital Stock capital stock or any other interest or (iib) make or repay any loans or advances to the Borrower or the parent of such Subsidiary.
Appears in 1 contract
Samples: Credit Agreement (Kuhlman Corp)
Restrictions on Ability of Subsidiaries to Pay Dividends. The Except to the extent required by applicable law, the Borrower shall not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (i) pay any dividends or make any other distributions on its Capital Stock capital stock or any other interest or (ii) make or repay any loans or advances to the Borrower or the parent of such Subsidiary.
Appears in 1 contract
