Common use of Sales of Collateral Obligations Clause in Contracts

Sales of Collateral Obligations. (a) So long as (A) no Event of Default has occurred and is continuing and (B) on or prior to the trade date for such sale the Borrower has certified to the Facility Agent in a certificate in such other form as may be agreed upon by the Facility Agent and the Borrower from time to time, that each of the conditions applicable to such sale set forth in this Article X has been satisfied, the Borrower (or the Portfolio Manager on behalf of the Borrower acting pursuant to the Portfolio Management Agreement) may direct the Collateral Agent in writing to sell, and the Collateral Agent shall sell in the manner directed by the Borrower (or the Portfolio Manager on behalf of the Borrower) in writing: (i) any Defaulted Obligation at any time; (ii) any Equity Obligation at any time; (iii) any Credit Risk Obligation at any time; (iv) any Credit Improved Obligation at any time; and (v) any Collateral Obligation with respect to which a Tax Event has occurred at any time. (b) Without limiting the foregoing, during or after the Reinvestment Period, the Borrower (or the Portfolio Manager on behalf of the Borrower acting pursuant to the Portfolio Management Agreement) may direct the Collateral Agent in writing to sell, in the manner described above, any Collateral Obligation that is not a Defaulted Obligation, an Equity Obligation, a Credit Risk Obligation, a Credit Improved Obligation or a Collateral Obligation with respect to which a Tax Event has occurred if: (i) each Coverage Test shall be satisfied immediately before and after giving effect to the proposed sale or, if not satisfied immediately before the proposed sale, is maintained or improved after giving effect to the proposed sale; and (ii) no Event of Default has occurred and is continuing; (c) Reserved.

Sales of Collateral Obligations. (a) So Except as otherwise expressly permitted or required by this Indenture, the Issuer shall not sell or otherwise dispose of any Collateral Obligation, provided that subject to satisfaction of any applicable conditions in Section 10.13, so long as (A) no Event of Default has occurred and is continuing and (B) on or prior to the trade date for such sale the Borrower Collateral Manager has certified to the Facility Agent in a certificate in such other form as may be agreed upon by the Facility Agent and the Borrower from time to time, Trustee that each of the conditions applicable to such sale set forth in this Article X below has been satisfied, the Borrower (or the Portfolio Collateral Manager on behalf of the Borrower Issuer acting pursuant to the Portfolio Collateral Management Agreement) Agreement may direct the Collateral Agent Trustee in writing to sell, and the Collateral Agent Trustee shall sell in the manner directed by the Borrower Collateral Manager in writing (which writing shall specify whether such security is a Defaulted Security or the Portfolio Manager on behalf of the Borrower) in writing:Credit Risk Security, if applicable, or whether such security is otherwise permitted to be sold pursuant to this Section 12.1(a)): (i) any Defaulted Obligation at any time; (ii) any Equity Obligation at any time; (iii) any Credit Risk Obligation at any time; (iv) any Credit Improved Obligation Security at any time; and (vii) any a Credit Risk Security, (A) during the Replenishment Period, if the Collateral Obligation Manager has certified to the Trustee that it shall use commercially reasonable efforts to purchase one or more Substitute Collateral Obligations having an Aggregate Principal Balance no less than the Sale Proceeds (excluding accrued interest) from such sale, and after giving effect to such sale and to the purchase of Substitute Collateral Obligations with respect to the Sale Proceeds thereof, in the reasonable business judgment of the Collateral Manager (which may not be called into question solely as a Tax Event has occurred result of subsequent events), the Replenishment Criteria shall be met and (B) after the Replenishment Period, at any time; provided that, there will be no reinvestment in Substitute Collateral Obligations after the Replenishment Period, and Principal Proceeds received by the Trustee in each Due Period after the end of the Replenishment Period will be applied to pay principal of the Notes in accordance with the Priority of Payments as described in Section 11.1(a). (b) Without limiting Notwithstanding the foregoing, during the Collateral Manager (at its option and at any time) shall be permitted to effect a sale of a Credit Risk Security or after the Reinvestment Period, the Borrower a Defaulted Security hereunder by purchasing (or causing its Affiliate to purchase) such Defaulted Security or Credit Risk Security from the Portfolio Manager on behalf of the Borrower acting pursuant Issuer for a cash purchase price that shall be equal to the Portfolio Management Agreementsum of (i) may direct the Collateral Agent in writing to sellAggregate Principal Balance thereof plus (ii) all accrued and unpaid interest (or, in the manner described abovecase of a Preferred Equity Security, any Collateral Obligation that is all accrued and unpaid dividends or other distributions not a Defaulted Obligation, an Equity Obligation, a Credit Risk Obligation, a Credit Improved Obligation or a Collateral Obligation with respect to which a Tax Event has occurred if: (i) each Coverage Test shall be satisfied immediately before and after giving effect attributable to the proposed sale or, if not satisfied immediately before the proposed sale, is maintained or improved after giving effect to the proposed sale; and (iireturn of capital by its governing documents) no Event of Default has occurred and is continuing; (c) Reservedthereon.