Common use of Agreements Restricting Liens and Distributions Clause in Contracts

Agreements Restricting Liens and Distributions. The Borrower shall not, nor shall it permit any of its Subsidiaries to, create, incur, assume or permit to exist any contract, agreement or understanding (other than this Agreement and the Security Instruments which in any way (a) prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its Property, whether now owned or hereafter acquired, to secure the Obligations (other than any contract, agreement or understanding prohibiting or restricting the granting, conveying, creation or imposition of any Lien solely on such contract, agreement or understanding), or (b) restricts any Subsidiary from paying dividends to the Borrower, or which requires the consent of or notice to other Persons in connection therewith.

Agreements Restricting Liens and Distributions. The No Borrower shall notshall, nor shall it any Borrower permit any of its Subsidiaries to, create, incur, assume or permit to exist any contract, agreement or understanding (other than this Agreement and the Security Instruments Instruments), which in any way (a) prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its PropertyProperty (other than customary restrictions in contracts or agreements prohibiting the granting of a Lien in, or assignment of, such contract or agreement), whether now owned or hereafter acquired, to secure the Obligations (other than any contract, agreement or understanding prohibiting or restricting the granting, conveying, creation or imposition of any Lien solely on such contract, agreement or understanding), or (b) restricts any Subsidiary of a Borrower from paying dividends to the a Borrower, or which requires the consent of or notice to other Persons in connection therewith.