Workout Loans Clause Samples

Workout Loans. Notwithstanding the foregoing, the Issuer may acquire a Workout Loan at any time during or after the Reinvestment Period from Interest Proceeds (including Contributions designated as Interest Proceeds); provided that no Interest Proceeds will be applied to acquire a Workout Loan if any non-payment or deferral of interest of any Class of Secured Notes is expected to occur on the immediately succeeding Payment Date on a pro forma basis, as determined by the Collateral Manager in its commercially reasonable judgment and provided further that not more than 10% of the Collateral Principal Amount may consist of Workout Loans at any time. In each case, the Issuer’s acquisition of a Workout Loan will not be required to satisfy the Investment Criteria.

Workout Loans. Notwithstanding the foregoing, the Issuer may acquire a Workout Loan at any time during or after the Reinvestment Period from Interest Proceeds (including Contributions designated as Interest Proceeds) so long as each Overcollateralization Ratio Test will be satisfied after acquisition of such Workout Loan; provided that no Interest Proceeds will be applied to acquire a Workout Loan if any non-payment or deferral of interest of any Class of Secured Debt is expected to occur on the immediately succeeding Payment Date on a pro forma basis, as determined by the Collateral Manager in its commercially reasonable judgment. In each case, the Issuer’s acquisition of a Workout Loan will not be required to satisfy the Investment Criteria.

Workout Loans. The Collateral Manager may direct the Trustee to sell any Workout Loan at any time without restriction.

Workout Loans. Notwithstanding anything in this Indenture to the contrary, at any time, the Collateral Manager may direct the Trustee to apply Interest Proceeds, Principal Proceeds or amounts designated for a Permitted Use to acquire a Workout Loan; provided, that (i) Interest Proceeds may not be used to acquire Workout Loans (a) if such use would likely result, in the Collateral Manager’s reasonable discretion, in a deferral of the payment of interest on the Debt on the next succeeding Payment Date and (b) unless all Coverage Tests are satisfied and (ii) Principal Proceeds may not be used to acquire Workout Loans unless the Workout Loan Payment Condition is satisfied in connection therewith. Notwithstanding anything in this Indenture to the contrary, the purchase of a Workout Loan is not required to satisfy the Investment Criteria.

Workout Loans. During (and, in the case of Contributions and Interest Proceeds after) the Reinvestment Period the Issuer may use Contributions, Interest Proceeds or Principal Proceeds on deposit in the Collection Account to acquire a Workout Loan; provided, that (1) Interest Proceeds may only be used to acquire a Workout Loan if the Collateral Manager believes that such acquisition will not render insufficient the available Interest Proceeds remaining on the next Payment Date to pay in full all amounts due and payable through and including Section 11.1(a)(i)(E), (2) if Principal Proceeds are used to acquire a Workout Loan, (w) such Workout Loan must rank senior to or pari passu with the Collateral Obligation subject to the applicable workout or restructuring, (x) after giving effect to such acquisition (i) Principal Proceeds (other than Principal Proceeds applied to the acquisition of Uptier Priming Debt) used to acquire Workout Loans and Equity Securities that are held by the Issuer on such date of determination may not exceed 5.0% of the Collateral Principal Amount and (ii) Principal Proceeds (other than Principal Proceeds applied to the acquisition of Uptier Priming Debt) used to acquire Workout Loans and Equity Securities at any time since the Closing Date shall not exceed 7.5% of the Target Initial Par Amount and (y) each Overcollateralization Ratio Test must be satisfied after giving effect to such acquisition; (3) if such Workout Loan is a Second Lien Loan, the Workout Payment Condition is satisfied with respect to such Workout Loan, (4) in the case of any Non-Qualified Workout Loan and after giving effect to such acquisition, the Collateral Principal Amount plus the S&P Collateral Value of any Defaulted Obligations will be greater than or equal to the Reinvestment Target Par Balance and (5) in the Collateral Manager’s judgment exercised in accordance with the Collateral Management Agreement, the acquisition of such Workout Loan is advisable to increase the recovery value with respect to the related Collateral Obligation or the failure to acquire such Workout Loan is reasonably likely to result in a reduced overall recovery with respect to the related Collateral Obligation. Any such acquisition of a Workout Loan shall not be subject to the Investment Criteria. For the avoidance of doubt, Contributions may be used to acquire Workout Loans without any restrictions under this paragraph so long as in the Collateral Manager’s judgment exercised in accordance with the C...

Workout Loans. Notwithstanding the foregoing, the Issuer may acquire a Workout Loan at any time during or after the Reinvestment Period from Interest Proceeds (including Contributions designated as Interest Proceeds) so long as each Overcollateralization Ratio Test will be satisfied after acquisition of such Workout Loan; provided that such application ofno Interest Proceeds would not cause thewill be applied to acquire a Workout Loan if any non-payment or deferral of interest onof any Class of Secured Debt is expected to occur on the immediately succeeding Payment Date on a pro forma basis, as determined by the Collateral Manager in its commercially reasonable judgment. In each case, the Issuer’s acquisition of a Workout Loan will not be required to satisfy the Investment Criteria.

Workout Loans. Notwithstanding the foregoing, the Issuer may acquire a Workout Loan at any time during or after the Reinvestment Period: from Interest Proceeds (including Contributions designated as Interest Proceeds); provided that such application ofno Interest Proceeds would not cause thewill be applied to acquire a Workout Loan if any non-payment or deferral of interest onof any Class of Secured Notes is expected to occur on the immediately succeeding Payment Date on a pro forma basis, as determined by the Collateral Manager in its commercially reasonable judgment and provided further that not more than 10% of the Collateral Principal Amount may consist of Workout Loans at any time. In each case, the Issuer’s acquisition of a Workout Loan will not be required to satisfy the Investment Criteria.

Workout Loans. Notwithstanding anything in this Indenture to the contrary, at any time, the Collateral Manager may direct the Trustee to apply Interest Proceeds, Principal Proceeds or amounts designated for a Permitted Use to acquire a Workout Loan; provided, that (i) Interest Proceeds may not be used to acquire Workout Loans (a) if such use would likely result, in the Collateral Manager’s reasonable discretion, in a non-payment of interest on the Debt on the next succeeding Payment Date and (b) unless all Coverage Tests are satisfied and (ii) Principal Proceeds may not be used to acquire Workout Loans (a) after the end of the Reinvestment Period or (b) unless the Workout Loan Payment Condition is satisfied after giving effect to such acquisition.

Workout Loans. Notwithstanding the foregoing, the Issuer may acquire a Workout Loan at any time during or after the Reinvestment Period from Interest Proceeds (including Contributions designated as Interest Proceeds); provided that no Interest Proceeds will be applied to acquire a Workout Loan if any non-payment or deferral of interest of any Class of Secured Debt is expected to occur on the immediately succeeding Payment Date on a pro forma basis, as determined by the Collateral Manager in its commercially reasonable judgment; provided further that, with respect to any such exercise, the Issuer shall only apply Interest Proceeds (including Contributions designated as Interest Proceeds) in excess of the amount of Interest Proceeds required to cure any Coverage Test failure continuing at such time. In each case, the Issuer’s acquisition of a Workout Loan will not be required to satisfy the Investment Criteria.