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 solely by the Borrower (i) to acquire and develop Oil and Gas Properties, (ii) for the Borrower’s working capital and general business purposes and capital expenditures not otherwise prohibited under applicable provisions of this Agreement and (iii) to pay fees and expenses incurred in connection with this Agreement. (b) Letters of Credit shall be issued solely for the account of the Borrower for general business purposes of the Borrower not otherwise prohibited under applicable provisions of this Agreement; provided, however, no Letter of Credit may be used in lieu or in support of stay or appeal bonds or Obligations in respect of Commodity Hedge Agreements or Interest Rate Hedge Agreements.

Use of Loan Proceeds and Letters of Credit. (a) Proceeds of all Loans shall be used solely by the Borrower (i) to pay expenses associated with the establishment of the Facility, (ii) to develop or acquire and develop Oil and Gas Properties, (iiiii) for the Borrower’s working capital and purposes or (iv) for other general business purposes and capital expenditures not otherwise prohibited under applicable provisions of this Agreement and (iii) to pay fees and expenses incurred in connection with this Agreement. (b) Letters of Credit shall be issued solely for the account of the Borrower and may be used for general business purposes of the Borrower not otherwise prohibited under applicable provisions of this Agreement; provided, however, no Letter of Credit may be used in lieu or in support of stay or appeal bonds or Obligations in respect of Commodity Hedge Agreements or Interest Rate Hedge Agreements.