Maximum Ownership Interest Clause Samples
The Maximum Ownership Interest clause sets a cap on the percentage of ownership or equity that any individual or entity can hold in a company or project. Typically, this clause specifies a numerical limit—such as 20% or 49%—and may apply to shareholders, partners, or members, preventing any one party from gaining excessive control. By restricting ownership concentration, the clause helps maintain balanced governance, prevents hostile takeovers, and ensures that decision-making power remains distributed among multiple stakeholders.
Maximum Ownership Interest. (a) If, on any day (after -------------------------- giving effect to Collections and the generation of new Receivables with respect to the Receivables Pool of any Division on such day), the Ownership Interest in such Receivables Pool would exceed the Maximum Ownership Interest (such Division referred to herein as the "Overextended Division"), the Purchaser shall be deemed to make an Incremental Purchase in the Receivables Pools of each of the other Divisions (each such Division, a "Selling Division") in, and the Investment in the Receivables Pool of the Overextended Division shall be deemed reduced by, the amount determined in accordance with the immediately succeeding sentence. Subject to subsection (b) below, the Incremental Purchase deemed to be made in the Receivables Pool of each Selling Division shall be in an amount equal to the product of (i) the amount sufficient to reduce the Ownership Interest in the Receivables Pool of the Overextended Division to the Maximum Ownership Interest and (ii) a fraction, the numerator of which is equal to the Investment with respect to such Selling Division and the denominator of which is equal to the sum of the Investment for each Selling Division; provided, that the -------- amount of such Incremental Purchase would not cause (and such amount shall be reduced so as not to cause) either:
(1) the Investment with respect to such Selling Division to exceed the Purchase Limit with respect to such Selling Division, or
(2) the Ownership Interest in the Receivables Pool of such Selling Division to exceed the Maximum Ownership Interest.
(b) If the Incremental Purchase with respect to any Selling Division is reduced in accordance with the proviso contained in subsection (a) above, the amount of such reduction shall be applied as deemed Incremental Purchases in the Receivables Pools of the remaining Selling Divisions on a pro rata basis; provided, that the amount of such Incremental Purchases would not cause (and -------- such amount shall be so as not to cause) either:
(1) the Investment with respect to any such Selling Division to exceed the Purchase Limit with respect to such Selling Division, or
(2) the Ownership Interest in the Receivables Pool of any such Selling Division to exceed the Maximum Ownership Interest with respect to such Selling Division. Notwithstanding anything to the contrary contained herein, the Seller shall not be required to deliver any written notice with respect to the sale of an Ownership Interest...
Maximum Ownership Interest. If during any Settlement Period the Aggregate Ownership Interest at the end of such Settlement Period exceeds the Maximum Ownership Interest, the Seller shall immediately make a payment to the Collection Agent in an amount sufficient to reduce the Aggregate Ownership Interest to the Maximum Ownership Interest but not to exceed the portion of Collections paid to Seller during such Settlement Period. Any such payment will be used to reduce the Investment and shall be applied ratably to the Ownership Interests of the Purchasers according to their respective shares of the Investment.
Maximum Ownership Interest. If at any time the Ownership -------------------------- Interest exceeds the Maximum Ownership Interest, the Purchaser shall cease making Reinvestment Purchases and the Collection Agent shall remit to the Purchaser on a daily basis its Ownership Interest in all Collections (net of amounts distributed or to be distributed pursuant to Sections 7.2.2(a) and 7.2(b)(i)) as a reduction to its Investment until the Purchaser has received an amount sufficient to reduce the Ownership Interest to below the Maximum Ownership Interest. The Seller shall remit to the Purchaser in reduction of its Investment any payments made by the Purchaser to the Seller on account of Reinvestment Purchases to the extent the Ownership Interest exceeds the Maximum Ownership Interest at the time the Seller received any such Reinvestment Purchase payments.