Advances Limitation Clause Samples

Advances Limitation. Directly or indirectly make any advance to (or decline or defer any payment due from) any stockholder if, at the time of or immediately after such action, (x) the Companies’ Adjusted Tangible Net Worth would be less than the minimum specified in Section 11.4 or (y) any Default or Event of Default would exist, except to the extent necessary to enable HC to fund payment of a dividend the nonpayment of which would result in loss of HC’s federal tax status as a real estate investment trust.