Securitization Subsidiary Clause Samples
The Securitization Subsidiary clause defines a specific type of subsidiary established by a company for the purpose of facilitating securitization transactions. Typically, this subsidiary is structured to hold financial assets, such as receivables or loans, which are then packaged and sold to investors as securities. By isolating these assets from the parent company’s balance sheet, the clause ensures that the risks and obligations associated with the securitized assets are contained within the subsidiary. This structure is essential for enabling securitization, protecting the parent company from related liabilities, and making the assets more attractive to investors.
Securitization Subsidiary. The Borrower shall not form any new Securitization Subsidiary without the prior written consent of the Administrative Agent and delivery to the Administrative Agent of a complete set of all agreements, documents, certificates and opinions for such Securitization Subsidiary acceptable to the Administrative Agent in its sole discretion. The Borrower shall cause the Constituent Documents of each Securitization Subsidiary to prohibit any transfer of the equity in such Securitization Subsidiary without the prior written consent of each of the Administrative Agent and the board of directors of such Securitization Subsidiary, unless such transfer is in connection with a Securitization.
Securitization Subsidiary. 16 Security" and "Securities...................................16 Security Register" and "Security Registrar..................16
Securitization Subsidiary. Section 8.12 of the Credit Agreement (Additional Subsidiaries) requires that any new Subsidiary of a Borrower must, inter alia, be joined as a Borrower under the Credit Agreement. Lenders hereby waive the requirement that a Securitization Subsidiary join the Credit Agreement as a Borrower. In addition, Lenders hereby waive a Securitization Subsidiary's compliance with the negative covenants found in Article 10 of the Credit Agreement, other than in Section 10.1 of the Credit Agreement.
Securitization Subsidiary. Hold, keep or maintain with or in, or sell, assign or transfer to either Securitization Subsidiary any property or asset, or conduct any transaction with, or cause or permit any Securitization Subsidiary to enter into any agreements or create or incur any obligations whatsoever, it being understood that each such Securitization Subsidiary shall at all times remain a dormant entity with no assets or liabilities.
Securitization Subsidiary. Other than such capital stock and promissory notes, true and correct copies of which have been delivered to the Administrative Agent on or before November 25, 2002, there exists no document or instrument evidencing any Investment by Avnet in any Securitization Subsidiary. As of November 25, 2002, no Securitization Subsidiary is directly or indirectly liable for any of the Obligations."
Securitization Subsidiary. The Borrower hereby agrees that the failure to deliver such legal opinion to the Administrative Agent by such date shall constitute an immediate Event of Default.