Limitation on Investments Negative Covenant Clauses
(Credit Agreement)

Summary

These Limitation on Investments Negative Covenant clauses for a credit agreement are used in a syndicated loan transaction. These clauses are used to prohibit the borrower and the other loan parties from making investments, with exceptions for carve-outs or baskets. These clauses include practical guidance and drafting notes. These clauses should be read in conjunction with the practice note Negative Covenants in Credit Agreements.