Lien Covenant Sample Clauses
A Lien Covenant is a contractual provision that restricts or regulates the ability of a party, typically a borrower, to create or permit liens on certain assets. In practice, this clause may require the borrower to maintain assets free of encumbrances, or to seek the lender's consent before granting security interests to other creditors. Its core function is to protect the lender's interests by preserving the value of collateral and preventing other claims from taking priority, thereby reducing the lender's risk exposure.
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Lien Covenant. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:
(a) Permitted Encumbrances;
(b) Liens existing on the Effective Date and listed on Schedule 6.03(b) and any modifications, replacements, renewals or extensions thereof; provided that (i) the property covered thereby is not changed other than the addition of proceeds, products, accessions and improvements to such property on customary terms, (ii) the amount of the obligations secured thereby is not increased except, in respect of Indebtedness, if permitted by Section 6.01(b), (iii) no additional Loan Party shall become a direct or contingent obligor of the obligations secured thereby and (iv) any modification, replacement, renewal or extension of the obligations secured or benefited thereby is permitted by Section 6.01(b);
(c) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the Effective Date prior to the time such Person becomes a Subsidiary; provided that such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be;
(d) Liens on property subject to Transportation Equipment Transactions; provided that the Indebtedness secured by any Transportation Equipment Transactions does not exceed the cost of acquiring the property subject thereto;
(e) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that (i) such Liens secure permitted Indebtedness, (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within 120 days (or such longer period if necessary solely to obtain any permits or licenses required in connection with such acquisition, construction or improvement) after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such Liens shall not apply to any other property or assets of the Borrower or any Subsidiary;
(f) Liens on Cash Collateral pursuant to Section 2.05(j) and Section 2.21;
(g) (i) Liens on the asse...
Lien Covenant. Section 10.9 is amended to (i) redesignate clause (p) as clause (q) and (ii) insert the following new clause (p) in proper alphabetical order:
Lien Covenant. 48 SECTION 6.04
Lien Covenant. Until this Agreement is terminated, Lessee shall not create, permit or suffer to exist any Lien on any of its property or assets or any interest therein except for Permitted Liens.
Lien Covenant. Effective on the Effective Date, clause (i) of section 8.3 of the Credit Agreement is amended to add thereto provisions permitting the Borrower to grant certain cash collateral, so that, as so amended, such clause (i) reads in its entirety as follows:
(i) Liens arising from financing statements regarding leases not in violation of this Agreement; and during the term of a synthetic lease financing of the following properties for a basic term of 5 years, namely, (1) Briarcliff-BVRC, (2) Briarcliff-BVHC, (3) Briarcliff-▇▇▇▇▇▇▇▇, and (4) Briarcliff-▇▇▇▇▇▇▇▇ Liens on cash and Cash Equivalents with an original valuation of approximately $35,300,000 deposited as security with a financial institution as security for such synthetic lease financing;
Lien Covenant is amended by (a) deleting the word "and" after clause (i); (b) re-lettering the existing clause (j) as clause (k); and (c) inserting the following new clause (j):
Lien Covenant. Section 6.3 of the Credit Agreement is hereby ------------- amended by (1) deleting the period (".") from the end of clause (d) thereof and inserting a semicolon and the word "and" ("; and") in its place and (2) inserting the following new clause (e) thereto: