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

Use of Loan Proceeds and Letters of Credit. (a) Proceeds of all Loans shall be used by the Borrowers solely for the acquisition and development of Oil and Gas Properties, the acquisition of businesses or assets related to the oil and gas business of any Borrower, and to provide general working capital. (b) Letters of Credit shall be used solely for general corporate purposes; provided, however, no Letter of Credit may be used in lieu of or in support of stay or appeal bonds."

Use of Loan Proceeds and Letters of Credit. (a) Proceeds of all Loans shall be used by the Borrowers solely for the acquisition to acquire and development of Oil and Gas Properties, the acquisition of businesses or assets related to the develop oil and gas business of any Borrower, properties and to provide general for working capitalcapital and related corporate purposes. (ba) Letters of Credit shall be used solely for general corporate purposesto support business operations of the Borrower in the ordinary course of business; provided, however, no Letter of Credit may be used in lieu of or in support of stay or appeal bondsbonds without the written consent of the Agent and the Lenders."