Restricted Financing Clause Samples
The Restricted Financing clause limits a party’s ability to obtain certain types of funding or financial support during the term of an agreement. Typically, this clause specifies which forms of financing are prohibited—such as loans from competitors or third parties that could create conflicts of interest—or requires prior written consent before new financing arrangements are made. Its core practical function is to protect the interests of the other party by preventing financial arrangements that could undermine the agreement, introduce risk, or compromise the business relationship.
Restricted Financing. Buyer acknowledges and agrees that all first trust deed, secondary, home equity line financing and any other financing that is secured by Buyer’s interest in the Property is restricted to financing available to Buyer from the Authorized Lender appointed by Seller pursuant to the Pepperdine University Home Loan Program (“PUHLP”), as the same may be amended from time to time. Paragraphs 4.0, 4.1 and 4.2 shall survive the Close of Escrow.