Cross- transfer Sample Clauses
A Cross-transfer clause establishes the conditions under which rights or obligations under a contract may be transferred between parties or to third parties. Typically, this clause outlines whether such transfers require prior consent, notification, or are automatically permitted, and may specify any limitations or exceptions. Its core practical function is to provide clarity and control over the assignment or delegation of contractual interests, thereby preventing unauthorized transfers and ensuring all parties are aware of and agree to any changes in contractual relationships.
Cross- transfer. Each Borrower may transfer (each a "Cross-transfer") any part of the balance standing to the credit of its Earnings Account to the Management Account, to the extent permitted under the terms of this Agreement, subject to:
(a) the Management Account being pledged in favour of the Lenders or, as the case may be, the Security Trustee at the relevant time;
(b) the Lenders being satisfied at all times that any transfers equivalent to the Cross-transfers are not in any way prohibited by any other lender of any member of the Group or any other third party;
(c) no Event of Default or Potential Event of Default being in existence at that time; and
(d) the Agent's receipt, promptly after its request (to be made on the instructions of the Majority Lenders), of a written statement that no Event of Default (including, without limitation, an Event of Default under Clause 19.1(f)(iv) in connection with the application of earnings in respect of any Fleet Vessel by any member of the Group pursuant to any loan or other facility agreement to which that member of the Group is a party) is in existence at the relevant time and that any transfer of funds, equivalent to a Cross-transfer, is not in any way prohibited by any lender of any member of the Group, and any amount remaining to the credit of the Earnings Accounts or the Management Account shall (unless a Potential Event of Default or an Event of Default shall have occurred or be continuing or will result from such withdrawal) be available to the relevant Borrower(s). If a Potential Event of Default or an Event of Default shall have occurred and be continuing, no sum may be withdrawn from either Earnings Account or the Management Account by the relevant Borrower(s) other than for the payment of Operating Expenses subject to the prior written consent of the Agent in its absolute discretion.