hell or high water covenant

One should keep in mind that the inclusion of such hell or high water sections in contracts can be challenging and discouraging, leading to potential buyers avoiding the deal. In the finance sector, hell or high water contracts are common in indentures, high yield bonds, takeovers, and venture finance dealings. In essence, it sets out the agreed elements of the deal, includes a number of important protections to all the parties involved and provides the legal framework to complete the sale of a property. Hell or High Water Clause The hell or high water clause is the foundation stone of aircraft operating lease agreements and it, or its equivalent, form part of every lease we review at IBA. Hell or High Water Contract Definition. The buyer is accountable until the end of the deal to continue making the agreed-upon payments to the owner. The provision requires buyers to undertake the responsibilities required to get regulatory approvals. The first term expires on Sept 30, after which the second term immediately begins. In such scenarios, the lessee, rather than the lessor, will shoulder any defects that might affect the equipment after handover. Script, acting, direction, music and landscape work together to produce a rich portrait of a couple of cowpoke brothers trying to make things right. The purchaser is obligated to pay for a product, such as electricity from a power plant or service such as transportation of gas or oil, even if the purchaser does not take delivery of the product or use the service. A hell or high water contract is a non-cancelable agreement by which the lessee is legally obliged until the expiration of the contract, to continue making stipulated installment payments to the lessor, irrespective of any complications they may run into during usage of the leased property or equipment. Dale Dickey, Actress: Hell or High Water. • “Hell or high water” – Except to the extent otherwise provided in Section X, upon the terms and subject to the conditions of this Agreement, each of the partieshereto shall(i) make promptly its respective filings and thereafter make any The clause defines the issuers’ approval to sustain a stated sum of debt from outside parties in a general debt basket as per the agreement. Additionally, a number of agreements do not have specific CFIUS covenants but rather covenants related to “governmental approvals” or similar language. Regardless of any difficulties, the buyer may experience during the period of usage of the leased property/equipment. https://www.investopedia.com/terms/h/hellorhighwater.asphttps://en.wikipedia.org/wiki/Hell_or_high_water_clausehttp://www.businessdictionary.com/definition/hell-or-high-water-clause.html Academic Research on Hell or High Water Clause, Managerial & Financial Accounting & Reporting, Government, Legal System, Administrative Law, & Constitutional Law, Business Entities, Corporate Governance & Ownership, Business Transactions, Antitrust, & Securities Law, Real Estate, Personal, & Intellectual Property, Commercial Law: Contract, Payments, Security Interests, & Bankruptcy, Operations, Project, & Supply Chain Management, Global Business, International Law & Relations, Management, Leadership, & Organizational Behavior, Research, Quantitative Analysis, & Decision Science, Investments, Trading, and Financial Markets, Business Finance, Personal Finance, and Valuation Principles, https://www.investopedia.com/terms/h/hellorhighwater.asp, https://en.wikipedia.org/wiki/Hell_or_high_water_clause, http://www.businessdictionary.com/definition/hell-or-high-water-clause.html, and Third Party Beneficiary Theory in Article 2A of the Uniform Commercial Code. There are instances where the leasing party does not directly deal with the property in the agreement. There are provisions to enforce hell or high water contracts notwithstanding defects in the property or equipment leased out. In addition, the Merger Agreement contained several conditions to Simplistically, this clause is the absolute contractual obligation every lessor and lessor investor relies upon. Whether or not the phrase HOHW is explicitly written, the general meaning of it has been included in a majority of equipment leasing contracts over the past few decades. . The expression ‘come hell or high water’ originated in America. Although “hell or high water” covenants, which are commonly seen in relation to merger clearance, are also regularly agreed for CFIUS approval, the seller may not consider such a covenant sufficient protection against the risk that CFIUS clearance is not obtained. The court emphasized a strongly contractarian approach. The original film score from Nick Cave and Warren Ellis for Hell or High Water is out now. Closing Conditions – What level of challenge from an antitrust authority is required before the buyer Dale Dickey was born on September 29, 1961 in Knoxville, Tennessee, USA as Diana Dale Dickey. If you still have questions or prefer to get help directly from an agent, please submit a request. In both cases, the provision ensures that the seller, service provider, or lessor receives payment for services. Please fill out the contact form below and we will reply as soon as possible. the so-called Hell-or-High-Water Covenant requiring Fresenius to take “all actions necessary” to achieve antitrust approval. In fact, in many instances, the lessor buys the equipment as requested by the would-be lessee and then hands it over after the signing of the hell or high water contract. come hell or high water phrase. Come Hell or High Water–Genesis 9 Continued. Concerns for manufacturing flaws are between the manufacturer and the lessee. Often, in order to be deliberate even when spiritual fatigue sets in, we must push through by means of self-talk or self-determination speaking words like: “Come hell or high water I will push through until I see this manifestation activated in my life because I know that God is for me not against me, God is with me, God will uplift me with his righteous right hand, and He will bless me just as He promised.” Id . The basket lets them sustain allowed debt irrespective of restrictions in the agreement applicable to other exact debt approvals, such as an obligation that borrowers must meet a financial ratio test in advance acquiring any debt. The film follows two brothers who carry out a series of bank robberies to save their family ranch, while being pursued by two Texas Rangers. Often times, the lessor is accused of inducing the lessee into a hell or high water contract by deliberately misrepresenting facts about the condition of equipment leased. The Commercial Banking & Credit Analyst (CBCA)™ accreditation is a global standard for credit analysts that covers finance, accounting, credit analysis, cash flow analysis, covenant modeling, loan repayments, and more. 4K UHD Movie A divorced father and his ex-con older brother resort to a desperate scheme in order to save their family's ranch in West Texas. Hell or high water contracts are not perfect; people try to take advantage of the loopholes. That was the pledge made before the President. Hell or high water contracts are non-cancelable agreements. 4K UHD Movie A divorced father and his ex-con older brother resort to a desperate scheme in order to save their family's ranch in West Texas. Divestiture Covenant – The level of divestitures the buyer is contractually required to accept in order to obtain the required approvals, which can range from silence to the proverbial “hell or high water”. What does hell or high water expression mean? transaction (“Reasonable Best Efforts Covenant”). certification program, designed to help anyone become a world-class financial analyst. And yet, while moviegoers desperate to see anything that doesn’t involve a superhero may be willing to overlook its shortcomings, others will undoubtedly be disappointed to find that it's somewhat less than the sum of its parts. Directed by David Mackenzie Hell or High Water is a heist film starring Ben Foster, Chris Pine and Jeff Bridges. The term comes from the expression "come hell or high water," which means an action or obligation must be performed no matter what happens and in spite of all difficulties. At times, the selling party is only dealing with the financial side of the agreement and is not involved whatsoever with the actual property (i.e., financing company). In such a way, the lessorLessor vs LesseeThere are two principal parties in a lease agreement, and every finance professional needs to know how to differentiate between the lessor vs can ensure that the lessee continues to make payments as per the agreement. The film is set in West Texas, and tells the story of two brothers who plan a […] ? View the course now! This covenant restricts the flow of money outside of the system, preserving the company's ability to repay its indebtedness. And under the Hell-or-High Water Covenant, Fresenius agreed to take “all actions necessary” to secure antitrust approval. 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