Negative Pledge Covenant definition
Negative Pledge Covenant means any covenant (whether expressed as a covenant, event of default or other agreement) restricting the ability of the Principal or any Subsidiaries to issue, assume or guarantee any Funded Debt secured by any Lien upon any property of the Principal or any of its Subsidiaries. Within a reasonable period of time following a request therefor by EDC, the Principal shall provide EDC with a true and complete copy of any provisions relating to particular Funded Debt of the Principal or its Subsidiaries relevant to a determination of the applicability of this Section 5.13 to the Negative Pledge Covenant relating to such Funded Debt.
Negative Pledge Covenant means, with respect to any Specified Asset to be added to the Borrowing Base, a covenant by the Specified Asset Owner of such Specified Asset stating the following: the Specified Asset Owner hereby covenants and agrees that until all of the Obligations under the Loan Documents have been paid in full, the Specified Asset Owner (1) shall not pledge, nor permit to exist any Lien on, the Specified Asset, except (i) Liens securing the Obligations, (ii) the Permitted Liens identified in clauses (a), (b), (c), (e), (g), (h), (i), (j), (k), (l), (m) and (n) of the definition of “Permitted Liens,” and (iii) Liens approved by Administrative Agent in its absolute discretion; and (2) shall not enter into or permit to exist any agreement with any Person, other than in connection with this Agreement or any other Loan Document, which prohibits or limits the ability of the Specified Asset Owner to create, incur, assume or suffer to exist any Lien upon or with respect to the Specified Asset.
Negative Pledge Covenant means, with respect to any Specified Asset to be added to the Borrowing Base, a covenant by the Specified Asset Owner of such Specified Asset stating the following: the Specified Asset Owner hereby covenants and agrees that until all of the Obligations under the Loan Documents have been paid in full, the Specified Asset Owner (1) shall not pledge, nor permit to exist any Lien on, the Specified Asset, except (i) Liens securing the Obligations, (ii) the Permitted Liens identified in clauses (a), (b), (c), (e), (g), (h), (i), (j), (k), (l), (m) and (n) of the definition of “Permitted Liens,” and (iii) Liens approved by Administrative Agent in its absolute discretion; and (2) shall not enter into or permit to exist any agreement with any Person, other than in connection with this Agreement or any other Loan Document, which prohibits or limits the ability of the Specified Asset Owner to create, incur, assume or suffer to exist any Lien upon or with respect to the Specified Asset. “Net Book Value” means, (a) with respect to all Engines and all items of Equipment included in the Borrowing Base, the aggregate value calculated as the lesser of: (i) the sum of the book values of all such Engines and items of Equipment, including any associated maintenance right intangible assets, as determined in accordance with GAAP as set forth on Borrower and its Subsidiaries financial statements, which for the avoidance of doubt is inclusive of any net investment in Lease receivable (finance or sales-type Lease) or note receivable (failed sale-leaseback) recognized in place of such Engine or item of Equipment’s net book value and (ii) the sum all of such Engines’ Adjusted Base Values and all of such items’ of Equipment Market Values or Parts Market Values, as the case may be, in each case reduced utilizing depreciation methods consistent with current practice and GAAP, and (b) with respect to Specified Assets included in the Borrowing Base, the aggregate value calculated as the lesser of: (i) the sum of the book values of all such Specified Assets determined in accordance with GAAP as set forth on Borrower and its Subsidiaries financial statements and (ii) the sum of the Specified Asset Market Values for all such Specified Assets, in each case reduced utilizing depreciation methods consistent with current practice and GAAP. “Net Cash Proceeds” shall mean the aggregate Cash payments received by Borrower net of (i) the ordinary and customary direct costs, fees and expense incurred...
Examples of Negative Pledge Covenant in a sentence
If EDC at the time so elects by notice to the Principal, the incorporation of each such additional, altered or revised Negative Pledge Covenant shall be deemed to occur automatically without any further action or the execution of any additional document by EDC or the Principal.
Conforming Change in Negative Pledge Covenant........................
The Lessee has further requested that the Owner Trustee, the Holder, the Lenders and the Administrative Agent waive the First Negative Pledge Covenant Default under the Lease Agreement and the Participation Agreement, as the case may be.
The Owner Trustee, the Holder, the Lenders and the Administrative Agent have considered the Lessee's request, and hereby waive the First Negative Pledge Covenant Default in the Lease Agreement and the Participation Agreement, as the case may be.