Common use of Restrictions on Intercompany Transfers Clause in Contracts

Restrictions on Intercompany Transfers. The Borrower shall not, and shall not permit any other Loan Party to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Loan Party to: (a) pay dividends or make any other distribution on any of such Loan Party’s Equity Interests owned by the Borrower or any Loan Party; (b) pay any Indebtedness owed to the Borrower or any Loan Party; (c) make loans or advances to the Borrower or any Loan Party; or (d) transfer any of its property or assets to the Borrower or any Loan Party; other than (i) with respect to clauses (a) through (d) those encumbrances or restrictions contained in any Loan Document and (ii) with respect to clause (d), customary provisions restricting assignment of any agreement entered into by the Borrower or any other Loan Party in the ordinary course of business.

Restrictions on Intercompany Transfers. The Borrower shall not, and shall not permit any other Loan Party to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Loan Party to: (a) pay dividends or make any other distribution on any of such Loan Party’s capital stock or other Equity Interests owned by the Borrower or any a Loan Party; (b) pay any Indebtedness owed to the Borrower or any a Loan Party; (c) make loans or advances disbursements to the Borrower or any a Loan Party; or (d) transfer any of its property or assets to the Borrower or any a Loan Party; other than (i) with respect to clauses (a) through (d) those encumbrances or restrictions contained in any Loan Document and Document, the Revolving Credit Agreement or any “Loan Document” under the Revolving Credit Agreement, or (ii) with respect to clause clauses (a) through (d), customary provisions restricting assignment of any agreement entered into by the Borrower or any other Loan Party such actions not undertaken in the ordinary course of businessbusiness or on fair and reasonable terms.