Exclusivity of Financing Sample Clauses
The Exclusivity of Financing clause establishes that the party seeking financing is restricted to obtaining funds solely from a specified source or lender during a defined period. In practice, this means the borrower cannot negotiate or accept financing offers from other parties while the exclusivity is in effect, often as a condition for the lender to invest time and resources in due diligence. This clause primarily serves to protect the lender’s interests by preventing the borrower from shopping for better terms elsewhere, thereby ensuring the lender’s efforts are not undermined by competing offers.
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Exclusivity of Financing. Borrower shall not obtain funds or financing for purposes of purchasing or funding the business or any asset or property of Borrower (including, without limitation, any Permitted Investment) from any source other than (i) equity capital contributed by Holdings to Borrower, (ii) the issuance and sale of Stock by Borrower to Holdings for cash, or (iii) Loans from Lender pursuant to the terms of this Agreement, unless there is no outstanding principal Loan balance in existence and either (x) the Facility Opt Out has been triggered, or (y) the Funding Termination Date has occurred.