Debtor’s Covenants Sample Clauses
The Debtor’s Covenants clause sets out specific promises and obligations that the debtor must fulfill during the term of a loan or credit agreement. These covenants often include requirements such as maintaining certain financial ratios, providing regular financial statements, or refraining from taking on additional debt without the lender’s consent. By clearly outlining these ongoing responsibilities, the clause helps protect the lender’s interests and ensures the debtor maintains financial discipline, thereby reducing the risk of default.
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Debtor’s Covenants. Until the Obligations are paid in full, Debtor agrees that it will:
6.1 preserve its legal existence and not, in one transaction or a series of related transactions, merge into or consolidate with any other entity, or sell all or substantially all of its assets;
6.2 not change the Debtor State of its registered organization;
6.3 not change its registered name without providing Secured Party with 30 days’ prior written notice; and
6.4 not change the state of its Place of Business or, if Debtor is an individual, change his state of residence without providing Secured Party with 30 days’ prior written notice.
Debtor’s Covenants. Until full payment and performance of all of the Obligation and termination or expiration of any obligation or commitment of Bank to make advances or loans to Debtor, unless Bank otherwise consents in writing:
Debtor’s Covenants. Debtor agrees: ------------------
a. To pay Secured Party all amounts payable on the note mentioned is this Security Agreement and all other obligations of Debtor held by Secured Party on or before the date when due and payable, whether at maturity, by acceleration, or otherwise; to perform all terms of the note and this Security Agreement, and of any other loan or security agreement between Debtor and Secured Party; and to pay all obligations required under the terms of this Security Agreement.
b. To use proceeds of all loans for the purposes agreed on.
c. To execute and deliver to Secured Party financing statements with respect to the Collateral (in number, form, and substance satisfactory to Secured Party) and such additional security documentation as and when Secured Party may request to effect the purposes of this Security Agreement; to deliver to Secured Party at its request financial statements, schedules, lists of property and accounts, budgets, books and records, forecasts, reports, tax returns, contracts, and other information relating in any manner to the Collateral.
d. To defend the Collateral against the claims and demands of all persons and entities.
e. To insure the Collateral against all hazards, in form and amount satisfactory to Secured Party; and, if requested by Secured Party, to obtain loss-payable endorsements in favor of Secured Party.
f. To keep the Collateral in good condition and keep crops and farm products in an unmanufactured state; to attend to and care for the Collateral; to perform other acts that may be necessary to grow, cultivate, spray, irrigate, cut, harvest, pick, preserve, and protect the crops and farm products according to the best course of husbandry practiced in the vicinity; to prepare crops and farm products for market and promptly notify Secured Party when those preparations have been made; keep the crops separate and always capable of being identified; promptly give Secured Party written notice of any disease to, any destruction of, any depreciation in the value of or any damage to the crops; to maintain the present buildings and improvements on the real property in good condition and repair; to keep in good standing all rights to water; to give Secured Party prompt notice of any damage to the Collateral or to the real property; to permit Secured Party to enter on the real property at reasonable times for the purpose of examining the Collateral; and to permit Secured Party to inspect all books and records rela...
Debtor’s Covenants. The Debtor agrees with the Secured Party that:
(a) The Debtor shall pay, perform, satisfy, fulfil and discharge the Secured Obligations when due.
(b) The Debtor shall, if requested by the Secured Party, deliver forthwith to the Secured Party such further details respecting the Collateral as may reasonably be requested from time to time by the Secured Party. Such further details so delivered shall be deemed to be contained in and form part of this Agreement.
(c) The Debtor shall not permit any material Collateral to be affixed to real or personal property not owned by the Debtor so as to become a fixture or accession, without prior written notice to the Secured Party and a Collateral Access Agreement.
(d) Except as permitted by the Credit Agreement, or in the ordinary course of the Debtor’s business, the Debtor shall not convey, sell, lease, license, assign, transfer or otherwise dispose of any of the Collateral.
(e) In the event that any Collateral, including, without limitation, proceeds thereof, is evidenced by or consists of chattel paper, instruments, securities or negotiable documents of title (collectively, the “Negotiable Collateral”), and if and to the extent that the Secured Party determines that perfection or priority of the Secured Party’s security interest is dependent on or enhanced by possession, the Debtor, immediately upon the request of the Secured Party, shall endorse and deliver physical possession of such Negotiable Collateral to the Secured Party.
(f) The Secured Party may, at any time after the occurrence and during the continuation of an Event of Default, (i) notify any Person obligated to the Debtor on any debt, account or chattel paper or any obligor to the Debtor on an instrument to make payment thereunder to the Secured Party, whether or not the Debtor was theretofore making collections thereon, and (ii) assume control of any proceeds arising from such Collateral. The Debtor agrees that, subject to the terms of any cash management agreement entered into by the Debtor, after the occurrence and during the continuance of an Event of Default, it will hold in trust for the Secured Party, as the Secured Party’s trustee, any of its collections that it receives and immediately will deliver such collections to the Secured Party or a cash management bank in their original form as received by the Debtor.
(g) The Debtor will not create, incur or permit to exist, and will defend the Collateral against, and will take such other action as is ne...
Debtor’s Covenants. The Debtor covenants that it shall:
(a) from time to time and at all reasonable times allow the Secured Party, by or through any of its officers, agents, attorneys, or accountants, to examine or inspect the Collateral, and obtain valuations and audits of the Collateral, at the Debtor's expense, wherever located. The Debtor shall do, obtain, make, execute and deliver all such additional and further acts, things, deeds, assurances and instruments as the Secured Party may require to vest in and assure to the Secured Party its rights hereunder and in or to the Collateral, and the proceeds thereof, including waivers from landlords, warehousemen and mortgagees;
(b) keep the Collateral in good order and repair at all times and immediately notify the Secured Party of any event causing a material loss or decline in value of the Collateral, whether or not covered by insurance, and the amount of such loss or depreciation;
(c) only use or permit the Collateral to be used in accordance with all applicable federal, state, county and municipal laws and regulations; and
(d) have and maintain insurance at all times with respect to all Collateral against risks of fire (including so‑called extended coverage), theft, sprinkler leakage, and other risks (including risk of flood if any Collateral is maintained at a location in a flood hazard zone) as the Secured Party may reasonably require, in such form, in the minimum amount of the outstanding principal of the Note and written by such companies as may be reasonably satisfactory to the Secured Party. Each such casualty insurance policy shall contain a standard Lender's Loss Payable Clause issued in favor of the Secured Party under which all losses thereunder shall be paid to the Secured Party as the Secured Party's interest may appear. Such policies shall expressly provide that the requisite insurance cannot be altered or canceled without at least thirty (30) days prior written notice to the Secured Party and shall insure the Secured Party notwithstanding the act or neglect of the Debtor. Upon the Secured Party’s demand, the Debtor shall furnish the Secured Party with evidence of insurance as the Secured Party may require. In the event of failure to provide insurance as herein provided, the Secured Party may, at its option, obtain such insurance and the Debtor shall pay to the Secured Party, on demand, the cost thereof. Proceeds of insurance may be applied by the Secured Party to reduce the Obligations or to repair or replace C...
Debtor’s Covenants. The Debtor agrees and covenants as follows:
Debtor’s Covenants. The Debtor hereby covenants and agrees with the Secured Party as follows:
Debtor’s Covenants. Until the Obligations are paid in full, Debtor agrees that it will:
6.1 preserve its corporate existence and not, in one transaction or a series of related transactions, merge into or consolidate with any other entity, or sell all or substantially all of its assets;
6.2 not change the state where it is located; and
6.3 not change its corporate name without providing Secured Party with 30 days' prior written notice.
Debtor’s Covenants. Notwithstanding anything to the contrary contained in the other Loan Documents (and subject to Section 15.11 below), Debtor hereby covenants and agrees that during the term hereof and until all Obligations are fully paid and performed:
Debtor’s Covenants. The Debtor covenants and agrees that, unless the Bank otherwise consents in writing, the Debtor shall at all times: