Restricted Investment definition: Copy, customize, and use instantly
Introduction
The term "Restricted Investment" refers to an investment that is subject to limitations or conditions under a contractual agreement, regulatory framework, or corporate policy. It is essential for defining permissible financial transactions, safeguarding asset allocations, and ensuring compliance with covenants in financial agreements.
Below are various examples of how "Restricted Investment" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Restricted Investment" as an investment exceeding permitted thresholds
This definition ties "Restricted Investment" to investments that surpass predefined limits.
"Restricted Investment" means any investment exceeding the thresholds established under the governing agreement, including but not limited to acquisitions, joint ventures, and capital contributions.
Definition of "Restricted Investment" as investments requiring lender approval
This definition connects "Restricted Investment" to investments requiring prior consent.
"Restricted Investment" refers to any investment requiring the express written consent of the lender or financial institution under the terms of the financing agreement.
Definition of "Restricted Investment" as non-qualifying transactions
This definition links "Restricted Investment" to investments that do not meet predefined criteria.
"Restricted Investment" means any investment that does not comply with the eligibility criteria set forth in the agreement, including speculative ventures and high-risk assets.
Definition of "Restricted Investment" as prohibited equity purchases
This definition applies "Restricted Investment" to specific equity transactions.
"Restricted Investment" refers to any purchase of equity securities in entities not approved under the investment policy or exceeding prescribed limits.
Definition of "Restricted Investment" as unauthorized subsidiary funding
This definition ties "Restricted Investment" to restrictions on funding affiliates.
"Restricted Investment" means any direct or indirect investment in a subsidiary that is not permitted under the applicable financing documents or corporate policies.
Definition of "Restricted Investment" as speculative asset allocations
This definition connects "Restricted Investment" to high-risk asset classes.
"Restricted Investment" refers to any allocation of funds toward speculative assets, including but not limited to cryptocurrency, derivatives, and unregulated securities.
Definition of "Restricted Investment" as debt or equity purchases exceeding contractual limits
This definition links "Restricted Investment" to capital transactions surpassing set thresholds.
"Restricted Investment" means any purchase of debt or equity instruments exceeding the limitations set forth in the governing agreement.
Definition of "Restricted Investment" as transactions outside permitted jurisdictions
This definition applies "Restricted Investment" to geographic restrictions.
"Restricted Investment" refers to any investment made in jurisdictions not approved under the terms of the agreement due to regulatory, tax, or legal considerations.
Definition of "Restricted Investment" as prohibited affiliate transactions
This definition ties "Restricted Investment" to unauthorized dealings with affiliates.
"Restricted Investment" means any transfer of funds, capital contribution, or financial commitment to an affiliate that is not expressly permitted under the agreement.
Definition of "Restricted Investment" as capital expenditures exceeding approved limits
This definition connects "Restricted Investment" to capital spending constraints.
"Restricted Investment" refers to any capital expenditure exceeding the amount permitted by the governing documents or financial covenants.
Definition of "Restricted Investment" as non-collateralized lending
This definition links "Restricted Investment" to unsecured loans.
"Restricted Investment" means any loan, advance, or credit extension made without collateral security, unless expressly allowed in the agreement.
Definition of "Restricted Investment" as unauthorized mergers and acquisitions
This definition applies "Restricted Investment" to M&A restrictions.
"Restricted Investment" refers to any acquisition, merger, or consolidation that is not permitted under the agreement or requires prior approval.
Definition of "Restricted Investment" as excessive ownership stakes
This definition ties "Restricted Investment" to ownership restrictions.
"Restricted Investment" means any purchase or acquisition of an equity interest exceeding the percentage allowed under the governing agreements.
Definition of "Restricted Investment" as financial commitments to distressed entities
This definition connects "Restricted Investment" to high-risk counterparties.
"Restricted Investment" refers to any investment in an entity undergoing insolvency, restructuring, or bankruptcy proceedings unless expressly authorized.
Definition of "Restricted Investment" as prohibited real estate acquisitions
This definition links "Restricted Investment" to real estate limitations.
"Restricted Investment" means any purchase, lease, or development of real estate properties that do not comply with contractual or regulatory requirements.
Definition of "Restricted Investment" as limited fund distributions
This definition applies "Restricted Investment" to restricted fund allocations.
"Restricted Investment" refers to any allocation of funds into restricted accounts, trusts, or escrow arrangements not authorized under the agreement.
Definition of "Restricted Investment" as transactions breaching financial covenants
This definition ties "Restricted Investment" to violations of financial agreements.
"Restricted Investment" means any investment or financial commitment that results in a breach of financial covenants set forth in the agreement.
Definition of "Restricted Investment" as unsecured guarantees
This definition connects "Restricted Investment" to contingent liabilities.
"Restricted Investment" refers to any guarantee, indemnity, or surety arrangement made without proper collateral or authorization.
Definition of "Restricted Investment" as restrictions under debt instruments
This definition links "Restricted Investment" to limitations in loan agreements.
"Restricted Investment" means any investment restricted under the terms of outstanding debt instruments, including bonds and loan covenants.
Definition of "Restricted Investment" as unauthorized private equity investments
This definition applies "Restricted Investment" to private placements.
"Restricted Investment" refers to any investment in private equity funds, venture capital, or hedge funds that is not permitted under the agreement.
Definition of "Restricted Investment" as constrained financial transfers
This definition ties "Restricted Investment" to fund movement limitations.
"Restricted Investment" means any transfer of funds that violates financial, regulatory, or contractual limitations.
Definition of "Restricted Investment" as restricted technology investments
This definition connects "Restricted Investment" to technological asset limitations.
"Restricted Investment" refers to any investment in technology assets, intellectual property, or R&D ventures that exceed contractual limits.
Definition of "Restricted Investment" as restricted foreign investments
This definition ties "Restricted Investment" to cross-border investment limitations.
"Restricted Investment" means any investment in a foreign entity, asset, or security that exceeds regulatory or contractual limits.
Definition of "Restricted Investment" as unauthorized related-party transactions
This definition connects "Restricted Investment" to dealings with related parties.
"Restricted Investment" refers to any financial transaction involving a related party that is not expressly permitted under the agreement.
Definition of "Restricted Investment" as limitations on high-risk securities
This definition links "Restricted Investment" to investments in speculative financial instruments.
"Restricted Investment" means any purchase of high-yield bonds, leveraged loans, or other high-risk securities not allowed under the investment policy.
Definition of "Restricted Investment" as restricted use of retained earnings
This definition applies "Restricted Investment" to limitations on retained earnings utilization.
"Restricted Investment" refers to any use of retained earnings for investments that exceed contractual, regulatory, or policy-imposed limits.
Definition of "Restricted Investment" as investments exceeding debt capacity restrictions
This definition ties "Restricted Investment" to financing constraints.
"Restricted Investment" means any investment that would cause the entity to exceed its permitted debt-to-equity ratio or leverage limits.
Definition of "Restricted Investment" as prohibited employee stock purchases
This definition connects "Restricted Investment" to employee investment restrictions.
"Restricted Investment" refers to any purchase of company stock by employees that violates insider trading rules or corporate policies.
Definition of "Restricted Investment" as restrictions on investment fund reallocations
This definition links "Restricted Investment" to fund movement constraints.
"Restricted Investment" means any reallocation of funds from an approved investment vehicle to an unapproved or higher-risk asset class.
Definition of "Restricted Investment" as limitations on insurance-related investments
This definition applies "Restricted Investment" to insurance company asset restrictions.
"Restricted Investment" refers to any investment made by an insurance entity that does not comply with applicable solvency, risk, or reserve requirements.
Definition of "Restricted Investment" as limitations on government bond purchases
This definition ties "Restricted Investment" to sovereign debt constraints.
"Restricted Investment" means any purchase of government-issued securities that exceeds regulatory or contractual exposure limits.
Definition of "Restricted Investment" as prohibited cryptocurrency holdings
This definition connects "Restricted Investment" to digital asset restrictions.
"Restricted Investment" refers to any direct or indirect investment in cryptocurrencies, digital tokens, or blockchain-based assets that is not explicitly permitted.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.