Common use of Use of Loan Proceeds and Letters of Credit Clause in Contracts

Use of Loan Proceeds and Letters of Credit. (a) As of the date hereof, indebtedness in the amount of $6,099,236.79 is outstanding under the Existing Note. The Lender shall use proceeds of the initial Loan to purchase such indebtedness. Such indebtedness shall be renewed, extended, and rearranged pursuant to the terms of this Agreement, the Note, and the relevant Borrowing Request and shall for all purposes be deemed a borrowing hereunder. Proceeds of all subsequent Loans shall be used solely for acquisitions and development of Oil and Gas Properties and for general corporate purposes. (b) Letters of Credit shall be used solely for general corporate purposes provided, however, no Letter of Credit may be used in lieu or in support of stay or appeal bonds without Lender's written consent.

Use of Loan Proceeds and Letters of Credit. (a) As of the date hereof, indebtedness in the amount of $6,099,236.79 20,076,885.43 is outstanding under the Existing Note. The Lender shall use proceeds of the initial Loan to purchase such indebtedness. Such indebtedness shall be renewed, extended, and rearranged pursuant to the terms of this Agreement, the Note, and the relevant Borrowing Request and shall for all purposes be deemed a borrowing hereunder. Proceeds of all subsequent Loans shall be used solely for acquisitions and development of Oil and Gas Properties and for general corporate purposes. (b) Letters of Credit shall be used solely for other general corporate purposes provided, however, no Letter of Credit may be used in lieu or in and to support of stay or appeal bonds without Lender's written consent.Commodity Hedge Agreements and