Borrower’s Covenants Sample Clauses
The Borrower’s Covenants clause sets out specific promises and obligations that the borrower must fulfill throughout the term of a loan or credit agreement. These covenants typically 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 duties, the clause helps protect the lender’s interests and ensures the borrower remains financially responsible, thereby reducing the risk of default.
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Borrower’s Covenants a. The Borrower/s agree and undertake to utilize the entire amount of the Loan, only for the End Use and shall not use the Loan amount for any speculative or illegal purposes.
b. The Borrower/s shall notify, in writing, to the Lender, of any change in the residence, contact numbers, employment, business or profession within 7 (Seven) days from the date of such change.
c. In case the Borrower/s commit a default in payment or repayment of the Principal Amount and the Interest thereon, the Lender, the National Housing Bank (“NHB”), the Reserve Bank of India (“RBI”) and / or any agency, statutory body, etc., so appointed by the NHB or RBI, will have an absolute right to disclose or publish the details of the default and the name of the Borrower/s as defaulters, in such manner and through such medium, as the Lender or the NHB or the RBI, in their absolute discretion, may think fit.
d. All the necessary Consents and approvals for availing the Loan shall be obtained and maintained by the Borrower/s and they shall at all times be in compliance with such Consents and approvals.
e. The Borrower/s shall not violate any covenant, conditions or stipulations under any existing agreement(s) entered into by them, by availing the Loan from the Lender, in a form and manner required by the Lender.
f. The Borrower/s shall inform the Lender of the happening of any Event of Default or any event which after the notice or lapse of time or both would become an Event of Default forthwith without any delay and demur.
g. The Borrower/s shall execute, forthwith and without any delay, demur or protest, all such documents, including this Agreement and other Transaction Documents, as may be prescribed by the Lender from time to time, for giving effect to the terms of this Agreement, including without limitation bank statements, salary slips, income tax returns, and such other documents.
Borrower’s Covenants. Borrower does hereby covenant and agree with Bank that, so long as any of the Obligations remain unsatisfied or any commitments hereunder remain outstanding, Borrower at all times will comply or cause to be complied with the following covenants:
Borrower’s Covenants. Borrower covenants and agrees that, until the Loan and all other amounts owing to Lender under the Loan Documents have been paid in full and all Secured Obligations have been satisfied, Borrower shall perform all of the covenants in this Article 6.
Borrower’s Covenants. Borrower makes the following agreements and covenants, which shall continue so long as this Loan and Security Agreement is in effect and so long as Borrower is indebted to Lender for obligations arising out of, identified in, or contemplated by this Loan and Security Agreement.
Borrower’s Covenants. Borrower covenants and agrees with Governmental Lender and Bank that until the full and final payment of all sums owed under the Borrower Loan Documents and the Funding Loan Documents, unless Bank waives compliance in writing:
Borrower’s Covenants. 3.1 As and when he becomes, and for so long as he remains a shareholder of Borrower Company, Borrower covenants irrevocably that during the term of this Agreement, Borrower shall cause Borrower Company:
3.1.1 to strictly abide by the provisions of the Exclusive Option Agreement and the Exclusive Business Cooperation Agreement (“Exclusive Business Cooperation Agreement”) to which the Borrower Company is a party, and to refrain from any action/omission that may affect the effectiveness and enforceability of the Exclusive Option Agreement and Exclusive Business Cooperation Agreement.
3.1.2 at the request of Lender (or a party designated by Lender), to execute contracts/agreements on business cooperation with Lender (or a party designated by Lender), and to strictly abide by such contracts/agreements;
3.1.3 to provide Lender with all of the information on Borrower Company’s business operations and financial condition at Lender’s request;
3.1.4 to immediately notify Lender of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to Borrower Company’s assets, business or income;
3.1.5 at the request of Lender, to appoint any persons designated by Lender as directors of Borrower Company;
3.2 Borrower covenants that during the term of this Agreement, he shall:
3.2.1 endeavor to keep Borrower Company to engage in its principle businesses;
3.2.2 abide by the provisions of this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement (“Equity Interest Pledge Agreement”) and the Exclusive Option Agreement to which the Borrower is a party, perform his obligations under this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement and the Exclusive Option Agreement, and refrain from any action/omission that may affect the effectiveness and enforceability of this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement and the Exclusive Option Agreement;
3.2.3 not sell, transfer, mortgage or dispose of in any other manner the legal or beneficial interest in Borrower Equity Interest, or allow the encumbrance thereon of any security interest or the encumbrance, except in accordance with the Equity Interest Pledge Agreement;
3.2.4 cause any shareholders’ meeting and/or the board of directors of Borrower Company not to approve the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in Borrower Equity Interest, or allow the encumbrance th...
Borrower’s Covenants. The Borrower agrees with the Bank that, from the date of this Agreement and until the Loans are paid in full and all obligations under this Agreement and the other Loan Documents are fully performed and this Agreement has been terminated:
Borrower’s Covenants. The Borrower covenants as follows:
Borrower’s Covenants. The Borrower covenants and agrees, on behalf of itself and the Borrower’s Subsidiaries, that, until full performance, satisfaction and payment in full in cash of all obligations due under this Note, the Borrower and the Borrower’s Subsidiaries shall not:
(i) Create, incur or assume any additional debt or undertake any lease, loan, obligation or financial commitment, except borrowings in the ordinary course of business under the Borrower’s Preexisting Credit Facilities in compliance with the terms and conditions of said credit facilities;
(ii) Create, incur, grant or permit to exist any additional liens on assets except those previously granted under the Preexisting Credit Facilities;
(iii) Declare, pay or make any dividend or distribution or return on capital on any membership interests/shares, or apply any funds, property or assets to the acquisition or redemption of any membership interests/shares, except to use the proceeds of the Note to redeem all membership interests/shares owned by Liberty and except to declare and pay distributions necessary to satisfy federal, state and local income tax liabilities relating to the ▇▇▇▇ Parties’ ownership/membership interests and aggregate quarterly distributions to the ▇▇▇▇ Parties collectively of up to 40% of the Net Earnings of the Borrower, all of which distributions shall be subject to the terms of the Preexisting Credit Facilities and the Borrower maintaining a positive working capital (current assets in excess of current liabilities) of at least $2,000,000 for so long as any amount remains due and owing under this Note. Net Earnings as used herein shall mean the Borrower’s pretax net income less the income tax liabilities of the owners relating to the ▇▇▇▇ Parties’ ownership and membership interests;
(iv) Pay any cash bonuses or make or commit to make any pension, profit sharing or equity earn-out program payments or contributions;
(v) Make any capital expenditures out of the ordinary course of business or in excess of $300,000 in the aggregate, subject to the Borrower maintaining a positive working capital of at least $2,000,000 as described in (iii) above;
(vi) Purchase, sell or transfer any assets except in the ordinary course of business and except for the following assets, which Lender acknowledges are being transferred from the Borrower to the ▇▇▇▇ Parties and others in connection with the redemption of Liberty’s ownership/membership interest: (1) the real estate currently owned by the Borrower at ▇▇▇▇...
Borrower’s Covenants. Borrower further covenants and agrees with Lender as follows: