Alienating System Clause Samples
The "Alienating System" clause defines the rules and restrictions regarding the transfer or sale of a system or asset covered by the agreement. Typically, this clause outlines the conditions under which the owner may transfer ownership, such as requiring prior written consent from the other party or compliance with certain legal or contractual obligations. For example, it may prohibit the sale of a software system to third parties without approval, or specify notification procedures if the system is to be transferred. The core function of this clause is to control and manage the transfer of key assets, thereby protecting the interests of the parties involved and preventing unauthorized or undesirable changes in ownership.
Alienating System. The Governmental Unit will not sell, lease, mortgage, pledge, or otherwise encumber, or in any manner dispose of, or otherwise alienate, the System, or any part thereof, including any and all extensions and additions that may be made thereto, until this Loan Agreement shall have been paid in full, including the Principal Component and the Interest Component, except that the Governmental Unit may sell any portion of said property which shall have been replaced by other property of at least equal value, or which shall cease to be necessary for the efficient operation of the System, but in no manner nor to such extent as might prejudice the security for the payment of this Loan Agreement, provided, however, that in the event of any sale as aforesaid, the proceeds of such sale shall be distributed as Net Revenues of the System as provided herein.
Alienating System. While this Loan Agreement is outstanding, the Governmental Unit shall not transfer, sell or otherwise dispose of the System, except that the Governmental Unit may dispose of inadequate, obsolete or worn out property. For purposes of this Section, any transfer of an asset over which the Governmental Unit retains or regains substantial control shall, for so long as the Governmental Unit has such control, not be deemed a disposition of the System.
Alienating System. No part of the System shall be sold, leased, mortgaged, pledged, encumbered, or otherwise disposed of or otherwise alienated, until all the bonds authorized by the Bond Question and any other securities of the District have been paid in full, both principal and interest, or unless provision has been made therefor, or until the bonds or other securities have otherwise been redeemed, including but not necessarily limited to the termination of the pledge herein authorized; provided, however, that the District may sell, exchange, or lease at any time and from time to time any property or facilities constituting part of the System and not useful in the construction, reconstruction, or operation thereof; but any proceeds of any such sale or exchange received and not used to replace such property so sold or exchanged shall be deposited in the Revenue Fund, and any proceeds of any such lease received shall be deposited by the District as revenues of the System.
Alienating System. No component required to construct, reconstruct or operate the District’s System shall be sold, leased, mortgaged, pledged, encumbered, or otherwise disposed of or alienated, until all Securities of the District have been paid in full or redeemed. In addition to a sale or lease of capacity in the District’s System between Connecting Entities as provided in Section 407.D, any sale or lease of capacity may be made only by the Connecting Entity that owns such capacity. Written notice of any such sale or lease shall be provided to the District as soon as practicable.
Alienating System. The District may sell, exchange, or lease at any time and from time to time any property or facilities constituting part of the system and not useful in the construction, reconstruction, or operation thereof.