Improper Distributions Sample Clauses

Improper Distributions. 10 Section 4.9 Bankruptcy................................................10

Improper Distributions. Notwithstanding any other provision contained in this Agreement, no Grantor shall accept any distributions, dividends or other payments (or any collateral in lieu thereof) in respect of the Collateral, except to the extent the same are permitted by the terms of this Agreement, the ABL Credit Agreement or the Term Loan Credit Agreement.

Improper Distributions. It is the intent of the Members that no distribution to any Member shall be deemed a return of any money or other property in violation of the LLC Act. The payment of any such money or distribution of any such property to a Member shall be deemed to be a compromise within the meaning of Section 18- 502(b) of the LLC Act, and the Member receiving any such money or property shall not be required to return any such money or property to any Person, the Company or any creditor of the Company. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Member is obligated to return such money or property, such obligation shall be the obligation of such Member and not of the Board of Governors or any other Member.