Interim Indebtedness Clause Samples
The Interim Indebtedness clause defines the terms under which a party may incur debt on a temporary or short-term basis during a specified period, often between the signing and closing of a transaction. This clause typically outlines the maximum allowable amount, the permitted uses of such debt, and any required approvals or notifications to the other party. Its core function is to provide flexibility for necessary short-term financing while protecting the interests of the other party by preventing excessive or unauthorized borrowing that could affect the transaction or the financial stability of the parties involved.
Interim Indebtedness. Lessee may incur Interim Indebtedness (as defined below) as in its judgment is deemed expedient, provided that in no event will Lessee incur Interim Indebtedness, together with outstanding Nonrecourse Indebtedness and Short-Term Indebtedness, on a combined basis, is in excess of the greater of: (1) 35% of Operating Expenses in any Fiscal Year, or (2) Maximum Deferred Apportionment.
Interim Indebtedness. The Tenant may incur Interim Indebtedness (as defined below) to finance or refinance existing capital needs as in its judgment is deemed expedient, provided that in no event will the Tenant incur Interim Indebtedness, together with outstanding Nonrecourse Indebtedness and Short-Term Indebtedness, on a combined basis, is in excess of the maximum amount of advance apportionment and principal apportionment due to the Tenant in any fiscal year that is deferred at any time or subject to deferral pursuant to Section 14041.6 of the California Education Code or Sections 16325.5 and 16326 of the California Government Code, or any subsequent legislation authorizing additional deferrals of such apportionments.