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Glossary

Limitation on Investments

Category — Covenants
Limitation on Investments - a covenant that restricts the issuer from making investments other than "Permitted investments". Investments are generally treated as Restricted Payments because they typically involve assets of the Issuer or its Restricted Subsidiaries being transferred to a third party outside the Credit Group. Because Investments may be both Permitted Investments and Restricted Payments, it is important to remember the Issuer is permitted to aggregate multiple baskets to make an Investment.
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