Restrictions on Sales and Leasebacks. The Borrower shall not sell or transfer any Property of the Borrower with the Borrower taking back a lease of such Property of the Borrower unless (i) such Property is sold within three hundred sixty (360) days from the date of acquisition of such Property or the date of the completion of construction or commencement of full operations on such Property whichever is later, or (ii) the Borrower within one hundred twenty (120) days after such sale, applies or causes to be applied to the retirement of debt of the Borrower or any Subsidiary (other than Debt of the Borrower which, by its terms or the terms of the instrument pursuant to which it was issued, is subordinate in right of payment to the Note) an amount not less than the greater of (x) the net proceeds of the sale of such Property or (y) the fair value (as determined in any manner approved by the Board of Directors) of such Property. The provisions of this Section shall not prevent a sale or transfer of any Property with a lease for a period, including renewals, of not more than thirty-six (36) months.
Appears in 5 contracts
Samples: Loan Agreement for Inventory Backed Borrowing (Intelect Communications Inc), Loan Agreement for Receivables Backed Borrowing (Intelect Communications Inc), Loan Agreement (Coastal Corp)
