Synthetic Obligations definition
Synthetic Obligations means as to any Person, all (a) obligations of such Person to pay rent or other amounts as a lessee under any lease that is treated as an operating lease for financial accounting purposes and a financing lease for tax purposes (i.e., a “synthetic lease”), (b) obligations of such Person in respect of transactions entered into by such Person, the proceeds from which would be reflected on the financial statement of such Person in accordance with GAAP as cash flows from financings at the time such transaction was entered into (other than as a result of the issuance of Equity Interests) and (c) obligations of such Person in respect of other transactions entered into by such Person that are not otherwise addressed in the definition of “Debt” or in clause (a) or (b) above that are intended to function primarily as a borrowing of funds.
Synthetic Obligations means as to any Person, the obligations of such Person to pay rent or other amounts under any lease (including leases that may be terminated by the lessee at any time) of any property (whether real, personal or mixed) (a) that is not a capital lease in accordance with GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for federal income tax purposes, other than any such lease under which such Person is the lessor.
Synthetic Obligations has the meaning set forth in the Intercreditor Agreement.
Examples of Synthetic Obligations in a sentence
No such amendment shall by its terms materially adversely affect the rights of holders of any of the ▇▇▇▇▇ Facility Obligations, the Letter of Credit Exposure, the Exchange Debt Obligations or the Synthetic Obligations, in a manner different from its effect on the rights of holders of any other Secured Obligations, except with the written consent of such affected holder (or of the requisite majority of the affected holders specified in the documents governing such affected holders' Secured Obligations).
More Definitions of Synthetic Obligations
Synthetic Obligations with respect to any Grantor, all obligations --------------------- and liabilities of such Grantor which may arise under or in connection with the Synthetic Guarantee whether on account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Synthetic Agent or to the Synthetic Lenders that are required to be paid by such Grantor pursuant to the terms of this Agreement or the Synthetic Guarantee).