Common use of Loans out Clause in Contracts

Loans out. (a) Except as permitted under paragraph (b) below, no Obligor shall (and the Borrower shall ensure that no other Group Member will) be the creditor in respect of any Financial Indebtedness. (b) Paragraph (a) does not apply to any Permitted Transaction or any of the following (each, a “Permitted Loan”): (i) trade credit extended by any Group Member on normal commercial terms and in the ordinary course of trading; (ii) any deposit placed with or cash balance at a bank or financial institution; (iii) Financial Indebtedness which is referred to in the definition of, or otherwise constitutes, “Permitted Financial Indebtedness”; (iv) a loan or credit made to a Joint Venture to the extent permitted under Clause 22.9 (Joint Ventures); (v) a loan or credit by a Group Member to another wholly-owned Group Member; or (vi) any loan made by the Parentco to the Borrower that constitutes Permitted Subordinated Indebtedness.