Indebtedness owed to Clause Samples
The 'Indebtedness owed to' clause defines which parties or entities a borrower is obligated to repay under a contract or agreement. Typically, this clause lists specific lenders, creditors, or classes of debt that are recognized as legitimate obligations of the borrower, and may outline the terms or hierarchy of repayment. By clearly identifying the recipients of repayment, this clause ensures transparency regarding financial obligations and helps prevent disputes over who is entitled to receive payments, thereby allocating risk and clarifying the borrower's responsibilities.
Indebtedness owed to. (A) The Company or a Guarantor evidenced by an unsubordinated promissory note; or
(B) any other Restricted Subsidiary; provided that if the Company or any Guarantor is an obligor, the Indebtedness is subordinated in right of payment to the Notes, in the case of the Company or the Co-Issuer., or the Note Guarantee, in the case of a Guarantor; provided that any event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to the Company or any other Restricted Subsidiary) will be deemed, in each case, to constitute an Incurrence of such Indebtedness not permitted by this clause (2)(B);