Unsecured Indebtedness Clause Samples
The Unsecured Indebtedness clause defines and governs debts or financial obligations that are not backed by collateral. In practice, this clause outlines the terms under which a party may incur such unsecured debts, often specifying limits, reporting requirements, or conditions for incurring additional unsecured liabilities. Its core function is to manage and control the level of risk associated with unsecured borrowing, thereby protecting the interests of the parties by ensuring that excessive or unapproved unsecured debt does not compromise financial stability or contractual obligations.
Unsecured Indebtedness. All Indebtedness of Borrower, of any Guarantor or of any of the other Related Companies to the extent not secured by a Lien on any Properties including, without limitation, the Outstanding Obligations and any Indebtedness evidenced by any bonds, debentures, notes or other debt securities presently outstanding or which may be hereafter issued by Borrower or by the Company. Unsecured Indebtedness shall not include accrued ordinary operating expenses payable on a current basis.
Unsecured Indebtedness. With respect to the Borrower and its Subsidiaries as of any date of determination, the Indebtedness of such Persons which is not Secured Indebtedness.
Unsecured Indebtedness. The Borrower shall not, and shall not permit any Subsidiary of the Borrower to, create, assume, incur or otherwise become or remain obligated in respect of, or permit to be outstanding, or suffer to exist any Unsecured Indebtedness, except:
(a) Indebtedness under the Loan Documents;
(b) Hedging obligations under Hedge Agreements entered into with any Person that is a Lender or an Affiliate of a Lender at the time of entering into such Hedge Agreement;
(c) Unsecured Indebtedness existing on the Agreement Date which is described on Schedule 6 hereto, including renewals, replacements and refinancings (but no increases) thereof;
(d) Unsecured Indebtedness in respect of endorsement of negotiable instruments in the ordinary course of business;
(e) Unsecured Indebtedness owing to any Obligor by the Borrower or any of its Subsidiaries, which Indebtedness (i) is evidenced by an entry on the financial records of the Borrower and any such Subsidiary and (ii) if owed by an Obligor, is subordinated to the Obligations in a manner satisfactory to the Determining Lenders, and which will permit payments to be made on such Indebtedness provided that no Default or Event of Default shall exist before such payment or after giving effect thereto;
Unsecured Indebtedness. All Indebtedness of any Person that is not secured by a Lien on any asset of such Person. wholly-owned Subsidiary. Any Subsidiary of which Sovran and/or SALP shall at any time own directly or indirectly through a Subsidiary or Subsidiaries at least a majority (by number of votes or controlling interests) of the outstanding voting interests and one hundred percent (100%) of the economic interests, of which at least ninety-nine percent (99%) of the economic interests shall be owned by SALP.
Unsecured Indebtedness. As of any date of determination, the sum of (a) the Indebtedness of the Borrower, the Trust and their respective Subsidiaries outstanding at any time which is not Secured Indebtedness plus (b) the amount by which the portion of the aggregate Secured Recourse Indebtedness of the Borrower, the Trust and their Subsidiaries exceeds the lesser of (i) $150,000,000.00 and (ii) ten percent (10%) of Consolidated Total Adjusted Asset Value. For the purposes of this definition, the amount of any contingent obligation of the type described in clause (c) of the definition of Indebtedness shall be deemed to be an amount equal to the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by Borrower in good faith and reasonably approved by Agent. Guaranties with respect to customary exceptions to Non-recourse Indebtedness of Borrower’s Subsidiaries or Unconsolidated Affiliates shall not be deemed to be Unsecured Indebtedness; provided that if a claim is made against Borrower or the Trust with respect thereto, the amount so claimed shall be considered Unsecured Indebtedness. Unsecured Indebtedness shall not include Subordinated Debt or accounts payable paid in the ordinary course of business. Variable Rate Debt. Indebtedness that is payable by reference to a rate of interest that may vary, float or change during the term of such Indebtedness (that is, a rate of interest that is not fixed for the entire term of such Indebtedness).
Unsecured Indebtedness. As at the end of any fiscal quarter or other date of measurement, the Borrowers shall not permit Consolidated Unsecured Indebtedness to exceed 55% of aggregate Capitalized Unencumbered Property Value for all Unencumbered Properties. For purposes of this calculation, to the extent that the annualized aggregate Capitalized Unencumbered Property Value for all Unencumbered Properties attributable to Unencumbered Properties subject to Ground Leases would exceed 10% of the Capitalized Unencumbered Property Value, such excess shall be excluded.
Unsecured Indebtedness. As at the end of any fiscal quarter and at all other times, the Borrowers shall not permit the ratio, expressed as a percentage (the “Unencumbered Leverage Ratio”), of Consolidated Unsecured Indebtedness to the aggregate Capitalized Unencumbered Property Value for all Unencumbered Properties to exceed 60%; provided, however, that if the Unencumbered Leverage Ratio is greater than 60% but is not greater than 65%, then the Borrowers shall be deemed to be in compliance with this §10.11 so long as (i) the Borrowers completed a Material Acquisition which resulted in the Unencumbered Leverage Ratio (after giving effect to such Material Acquisition) exceeding 60% at any time during the fiscal quarter in which such Material Acquisition took place and for any subsequent consecutive fiscal quarters, (ii) the Unencumbered Leverage Ratio does not exceed 60% for a period of more than four consecutive fiscal quarters immediately following the fiscal quarter in which such Material Acquisition was completed, (iii) the Borrowers have not maintained compliance with this this §10.11 in reliance on this proviso for more than two periods (which periods may not be consecutive) during the term of this Agreement and (iv) the Unencumbered Leverage Ratio (after giving effect to such Material Acquisition) is not greater than 65% at any time. For purposes of calculating the Unencumbered Leverage Ratio, to the extent that the aggregate Capitalized Unencumbered Property Value attributable to Unencumbered Properties subject to Ground Leases exceeds 10% of the Capitalized Unencumbered Property Value for all Unencumbered Properties, such excess shall be excluded.
Unsecured Indebtedness. Indebtedness arising under agreements providing for indemnification, adjustment of purchase price or similar obligations, or obligations to perform bids, trade contracts, leases, statutory obligations or surety and appeal bonds, performance bonds and other similar obligations incurred in the ordinary course of business.
Unsecured Indebtedness. All Indebtedness of any Person that is not secured by a Lien on any asset of such Person. wholly-owned Subsidiary. Any Subsidiary (a) of which MCRLP and/or MCRC shall at any time own directly or indirectly through a Subsidiary or Subsidiaries at least a controlling majority (by number of votes or controlling interests) of the outstanding voting interests and one hundred percent (100%) of the economic interests, of which at least ninety-five percent (95%) of the economic interests shall be owned by MCRLP and (b) of which MCRC directly or indirectly (through wholly-owned Subsidiaries) acts as sole general partner or managing member; provided that the Subsidiary Guarantors shall be wholly-owned Subsidiaries.
Unsecured Indebtedness. All Indebtedness of any Person that is not secured by a Lien on any asset of such Person.