Common use of Limitation on Credit Extensions Clause in Contracts

Limitation on Credit Extensions. Except for Permitted Investments, no Restricted Person will extend credit, make advances or make loans other than (a) normal extensions of credit to customers buying goods and services in the ordinary course of business, which extensions shall not be for periods longer than those (i) historically granted by Borrower or (ii) granted by similar businesses operated in a commercially reasonable and prudent manner, (b) loans to Borrower or to any Guarantor and (c) loans to employees of any Restricted Person, so long as the aggregate amount of such loans to any single employee does not exceed $100,000 and the aggregate amount of all such loans made by all Restricted Persons does not exceed the Threshold Amount.