Limitation on Indebtedness Negative Covenant Clauses
(Credit Agreement)

Summary

These Limitation on Indebtedness 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 incurring indebtedness, with exceptions for carve-outs or baskets. These clauses include practical guidance, alternate clauses, optional clauses, and drafting notes. These clauses should be read in conjunction with the practice note Negative Covenants in Credit Agreements.