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Glossary

Limitation on Restricted Payments

Category — Covenants
Limitation on Restricted Payments - a covenant that is designed to prevent cash and assets from being transferred outside the Credit Group, subject to certain exceptions, unless the Credit Group’s positive performance or improved financial condition justifies its ability to make such payments. This protection is important to noteholders because it preserves the Issuer’s ability to repay its indebtedness, as well as preserving assets in the Credit Group in the event of insolvency or bankruptcy.
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