Use of Loans Clause Samples
The 'Use of Loans' clause defines how borrowed funds provided under an agreement may be utilized by the borrower. Typically, it restricts the borrower to using the loan proceeds for specific, agreed-upon purposes, such as funding a particular project, refinancing existing debt, or covering operational expenses. By clearly outlining permitted uses, this clause ensures that the lender’s funds are not diverted to unauthorized or high-risk activities, thereby protecting the lender’s interests and maintaining transparency in the loan arrangement.
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Use of Loans. 36 Section 7.08 ERISA................................ 36 Section 7.09 Taxes................................ 37 Section 7.10 Titles, etc.......................... 37 Section 7.11 No Material Misstatements............ 38 Section 7.12 Investment Company Act............... 38 Section 7.13 Public Utility Holding Company Act... 38 Section 7.14 Subsidiaries and Partnerships........ 38 Section 7.15 Location of Business and Offices..... 38 Section 7.16 Defaults............................. 38 Section 7.17
Use of Loans. Neither the Borrower nor any of its Significant Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, as defined in Regulation U, and no part of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock. No part of the proceeds of any Loan hereunder will be used to acquire stock of any corporation the board of directors of which has publicly stated its opposition to such acquisition or fails to endorse such acquisition.
Use of Loans. Neither the Company nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock and no part of the proceeds of any Loan hereunder will be used to buy or carry, or to extend credit to others to buy or carry, any Margin Stock.
Use of Loans. The Borrower shall use all Loans and the proceeds thereof solely for the purposes set forth in Section 2.3 hereof.
Use of Loans. 35 7.08 ERISA.............................................................................................35 7.09 Taxes.............................................................................................36 7.10 Titles, etc.......................................................................................36 7.11
Use of Loans. 39 Section 7.08 ERISA.................................................................................39 Section 7.09 Taxes.................................................................................40 Section 7.10 Titles, etc...........................................................................41 Section 7.11 No Material Misstatements.............................................................41 Section 7.12 Investment Company Act................................................................41 Section 7.13 Public Utility Holding Company Act....................................................41 Section 7.14 Operation of the Pipeline.............................................................41 Section 7.15 Capitalization of General Partner and Subsidiaries....................................42 Section 7.16 Location of Business and Offices......................................................42 Section 7.17 Defaults under Material Agreements....................................................42 Section 7.18 Environmental Matters.................................................................42 Section 7.19 Compliance with Laws..................................................................43 Section 7.20 Insurance.............................................................................43 Section 7.21 Hedging Agreements....................................................................44 Section 7.22 Restriction on Liens..................................................................44 Section 7.23
Use of Loans. The Borrower will use the proceeds of the Loans for any lawful corporate purposes.
Use of Loans. (a) The proceeds of the Loans shall be used solely (i) to pay all amounts owing under the Existing Credit Agreement, (ii) to pay fees and expenses related to the Transactions, this Agreement and the other Loan Documents, (iii) to develop the Oil and Gas Properties of the Company and its Subsidiaries in accordance with the APOD.
(b) Neither the Company nor any Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.
Use of Loans. Subject to the terms and conditions elsewhere herein, the proceeds of the Loans shall be used (a) to pay fees and payables, (b) to provide additional drilling capital and (c) for general working capital purposes; provided, however, the proceeds of the Loans shall not be used to pay any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.
Use of Loans. The proceeds of the Loans shall be used -------------- to reduce existing Debt (including payment of accounts payable), pay the costs associated with the approved Development Projects set forth in the Development Plan, pay the commitment fee referenced in Section 2.04 and pay the other costs of the transactions related to this Agreement. The Borrower and its Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loans will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.