Excess Indebtedness Clause Samples
The Excess Indebtedness clause restricts a party from incurring debt beyond a specified threshold set out in the agreement. In practice, this clause typically defines what constitutes 'indebtedness' and sets a maximum allowable amount, sometimes including exceptions for certain types of loans or credit facilities. Its core function is to protect the other party by limiting financial risk and ensuring the borrower remains financially stable, thereby reducing the likelihood of default or insolvency.
Excess Indebtedness. Borrower agrees to pay to Lender on demand the amount by which the indebtedness hereunder, at any time, may exceed the Loan Amount.
Excess Indebtedness. The obligors agree to pay to Lender on demand the amount by which the indebtedness incurred hereunder or under any of the other Loan Documents, at any time, exceeds the original principal amount of the Loan.
Excess Indebtedness. Reference is made to Section 3.4(b) of this Agreement for provisions relating to payment and cash collateralization of amounts of the principal balance of the Loan and the face amount of the outstanding Letter of Credit which at any time exceed the Availability.
Excess Indebtedness. 5 Excess MCI/WorldCom Indebtedness....................................... 5
Excess Indebtedness. Borrower agrees to pay to Agent (i) on demand the amount by which the indebtedness hereunder, at any time, may exceed the Commitment Amount or (ii) within thirty (30) days after demand, the amount by which the indebtedness hereunder, at any time, may exceed the Borrowing Base Loan Amount.
Excess Indebtedness. Reference is made to Section 3.3(b) of the Loan Agreement for provisions relating to payment and cash collateralization of amounts of the principal balance of the Loan and the combined face amount of all outstanding Letters of Credit which at any time exceed the Availability.
(d) Section 10.1(a) of the Loan Agreement is hereby modified and amended in its entirety to read as follows:
(a) Borrowers fail to (i) pay any installment of principal or interest payable pursuant to the Note on the date when due, (ii) reimburse to Lender any amount drawn on any Letter of Credit when required by the Letter of Credit Documents, or (iii) pay any other amount payable to Lender under the Note, any Letter of Credit Document, this Agreement or any of the other Loan Documents when any such payment is due in accordance with the terms hereof or thereof;