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CONTINUING GUARANTY AGREEMENT

Guarantee Agreement

CONTINUING GUARANTY AGREEMENT | Document Parties: ALLIED CAPITAL CORP | ALLIED ASSET HOLDINGS, LLC | Allied Capital Corporation | US BANK, NATIONAL ASSOCIATION You are currently viewing:
This Guarantee Agreement involves

ALLIED CAPITAL CORP | ALLIED ASSET HOLDINGS, LLC | Allied Capital Corporation | US BANK, NATIONAL ASSOCIATION

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Title: CONTINUING GUARANTY AGREEMENT
Governing Law: New York     Date: 9/1/2009
Industry: Investment Services     Sector: Financial

CONTINUING GUARANTY AGREEMENT, Parties: allied capital corp , allied asset holdings  llc , allied capital corporation , us bank  national association
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Exhibit 10.6

CONTINUING GUARANTY AGREEMENT

This CONTINUING GUARANTY AGREEMENT (the “ Guaranty ”) is made and entered into as of the 28th day of August, 2009, by the undersigned Guarantor (whether one or more the “ Guarantor ”, and if more than one jointly and severally), in favor of U.S. BANK, NATIONAL ASSOCIATION , in its capacity as collateral agent (together with its permitted successors and assigns, the “ Collateral Agent ”) pursuant to the Intercreditor Agreement (as hereafter defined), for the benefit of the Secured Parties (as defined in the Intercreditor Agreement). Unless otherwise indicated herein, all terms used with their initial letter capitalized are used herein with their meaning as defined in the Intercreditor Agreement.

RECITALS:

 

A.

 

The Guarantor is an Affiliate of Allied Capital Corporation, a Maryland corporation (the “ Borrower ”).

 

 

B.

 

The Borrower has entered into the Bank Credit Agreement and the Note Agreement, and pursuant to the requirements of such documents, (i) the Borrower and certain of its subsidiaries (other than the Guarantor hereunder) have granted (or concurrently herewith are granting) liens and security interests on certain of their respective assets to secure the Senior Secured Obligations and (ii) the Borrower is required to cause the Guarantor to execute and deliver this Guaranty to the Collateral Agent (for the ratable benefit of the Secured Parties).

 

 

C.

 

Pursuant to and subject to the terms of that certain Intercreditor and Collateral Agency Agreement dated as of August 28, 2009 (as the same may be amended, modified, supplemented, or restated from time to time, the “ Intercreditor Agreement ”) among Collateral Agent, the Administrative Agent (on behalf of itself and each of the Lenders), and the Noteholders, and acknowledged by the Borrower, the Guarantor, and the other guarantors of the Senior Secured Obligations, the Secured Parties (i) appointed Collateral Agent to act as agent for the benefit of the Secured Parties with respect to this Guaranty and the collateral pledged by the Borrower and certain of its subsidiaries and (ii) authorized and directed Collateral Agent to execute this Guaranty and perform the duties and obligations delegated to it pursuant to the terms of the Intercreditor Agreement.

 

 

D.

 

The Borrower understands that the execution and delivery of this Guaranty is a requirement of the Bank Credit Agreement and the Note Agreement.

 

 

E.

 

In the Guarantor’s judgment, the value of the consideration received under the Financing Documents, together with its contribution rights from the Borrower and any other guarantor of the Guaranteed Obligations (as hereafter defined), is reasonably worth at least as much as its liabilities and obligations under this Guaranty, and such liability and obligation may reasonably be expected to benefit the Guarantor directly or indirectly.

NOW, THEREFORE, FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of credit and/or financial accommodation heretofore or hereafter from time to time made or granted to the Borrower under the Financing Documents, the Guarantor hereby furnishes its guaranty of the Guaranteed Obligations in favor of Collateral Agent (for the benefit of the Secured Parties), as follows:

1.  Guaranty. The Guarantor hereby absolutely and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand, or otherwise, and at all times thereafter, of any and all of the Senior Secured Obligations, whether now existing or hereafter arising of every kind, nature and character, direct or indirect, absolute or contingent, liquidated or unliquidated, voluntary or involuntary and whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses, or otherwise (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys’ fees and expenses incurred by the Secured Parties in connection with the collection or enforcement thereof), and whether recovery upon such indebtedness and liabilities may be or hereafter become unenforceable or shall be an allowed or disallowed claim under any proceeding or case commenced by or against the Guarantor or the Borrower under the Bankruptcy Code (Title 11, United States Code), any successor statute or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (collectively, “ Debtor Relief Laws ”), and including interest that accrues after the commencement by or against the Borrower of any proceeding under any Debtor Relief Laws (collectively, the “ Guaranteed Obligations ”). The Collateral Agent’s and each of the other Secured Party’s books and records showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon the Guarantor and conclusive for the purpose of establishing the amount of the Guaranteed Obligations, absent manifest error. This Guaranty shall not be affected by the genuineness, validity, regularity, or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection, non-perfection, or extent of any collateral therefor, or by any fact or circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing. Anything contained herein to the contrary notwithstanding, the obligations of the Guarantor hereunder at any time shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code (Title 11, United States Code) or any comparable provisions of any similar federal or state law.

2.  No Setoff or Deductions; Taxes; Payments. The Guarantor represents and warrants that it is organized and resident in the United States of America. The Guarantor shall make all payments hereunder without setoff or counterclaim and free and clear of and without deduction for any taxes, levies, imposts, duties, charges, fees, deductions, withholdings, compulsory loans, restrictions, or conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless the Guarantor is compelled by law to make such deduction or withholding. If any such obligation (other than one arising with respect to franchises taxes or taxes based on or measured by the income or profits of the Secured Parties) is imposed upon the Guarantor with respect to any amount payable by it hereunder, the Guarantor will pay to the Collateral Agent (for the benefit of the Secured Parties), on the date on which such amount is due and payable hereunder, such additional amount in U.S. dollars as shall be necessary to enable the Secured Parties to receive the same net amount which the Secured Parties would have received on such due date had no such obligation been imposed upon the Guarantor. The Guarantor will deliver promptly to the Collateral Agent certificates or other valid vouchers for all taxes or other charges deducted from or paid with respect to payments made by the Guarantor hereunder. The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

3.  Rights of Collateral Agent. The Guarantor consents and agrees that the Collateral Agent, or the Secured Parties may, at any time and from time to time, without notice (except as provided in Section 4 below) or demand, and without affecting the enforceability or continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for payment or the terms of the Guaranteed Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply such security and direct the order or manner of sale thereof as the Collateral Agent and Secured Parties may determine; and (d) release or substitute one or more of any endorsers or other guarantors of any of the Senior Secured Obligations. Without limiting the generality of the foregoing but subject to any applicable provisions of the other Financing Documents, the Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of the Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of the Guarantor.

4.  Certain Waivers. The Guarantor waives (a) any defense arising by reason of any disability or other defense (other than the defense that the Senior Secured Obligations shall have been fully and finally performed and paid in full in cash, to the extent of any such payment) of the Borrower, any subsidiary of the Borrower, or any other guarantor of any of the Senior Secured Obligations, or the cessation from any cause whatsoever (including any act or omission of any Secured Party) of the liability of the Borrower; (b) any defense based on any claim that the Guarantor’s obligations exceed or are more burdensome than those of the Borrower; (c) the benefit of any statute of limitations affecting the Guarantor’s liability hereunder; (d) any right to require the Collateral Agent to proceed against the Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any other remedy in the Collateral Agent’s power whatsoever; (e) any benefit of and any right to participate in any security now or hereafter held by the Collateral Agent on behalf of the Secured Parties; and (f) to the fullest extent permitted by law, any and all other defenses or benefits that may be derived from or afforded by applicabl


 
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