Permitted Arrangements Clause Samples
The Permitted Arrangements clause defines the specific types of transactions, relationships, or agreements that are allowed under the contract, despite any general restrictions elsewhere in the document. Typically, this clause lists exceptions to prohibitions on certain activities, such as allowing the creation of subsidiaries, entering into joint ventures, or maintaining existing financing arrangements. Its core function is to provide clarity and flexibility by explicitly stating which arrangements are acceptable, thereby preventing inadvertent breaches and ensuring both parties understand the boundaries of permissible conduct.
Permitted Arrangements. This Section shall not preclude arrangements for the withholding of applicable taxes from payments under this Agreement, or arrangements for direct deposit of benefit payments to an account in a bank, savings and loan association or credit union (provided that such arrangement is not part of an arrangement constituting an assignment or alienation).