Use of Proceeds for Letters of Credit Sample Clauses

The "Use of Proceeds for Letters of Credit" clause defines how funds provided under a credit facility may be used specifically for issuing or supporting letters of credit. Typically, this clause restricts the borrower to applying the proceeds solely for the purpose of obtaining letters of credit, rather than for general corporate purposes or other expenditures. For example, a company may draw on a revolving credit line only to secure a letter of credit required by a supplier or regulatory authority. This clause ensures that the lender’s funds are used in a controlled manner, reducing misuse and aligning the use of credit with the agreed-upon financial arrangements.
Use of Proceeds for Letters of Credit. The Letters of Credit shall be used by the Company, a Restricted Subsidiary or any Approved Joint Venture (i) to support bonding requirements for real estate site improvements or maintenance in favor of various municipal entities, (ii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance with respect to the Company's land and lot development activities, (iii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance in connection with land acquisition activities, and (iv) to provide admitted capital in connection with the Insurance Sub, subject to the limitations set forth in this Agreement.
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Use of Proceeds for Letters of Credit. The Letters of Credit shall be used by the Company or any Approved Joint Venture to (i) support bonding requirements for real estate site improvements or maintenance in favor of various municipal entities, (ii) to secure the Company's contractual performance with respect to the Company's land and lot development activities, (iii) to secure the Company's contractual performance in connection with the Company's land acquisition activities, and (iv) in connection with Approved Joint Ventures. "Approved Joint Venture" means (i) any entity which satisfies all the requirements of the last sentence of this Section 1.3(g), or (ii) any other entity in which the Company has an Investment in Joint Venture for which the Administrative Agent and the Banks have received guaranty agreements or other undertakings satisfactory to the Administrative Agent and the Banks in an aggregate amount not less than the full amount of any Letter of Credit issued on account of such entity, and such entity satisfies the following conditions to the satisfaction of the Administrative Agent and the Required Banks (a) review and approval by the Administrative Agent of financial statements and financial condition of such partner or partners, including confirmation of the absence of any borrowings by such entity (other than purchase money seller financing in an amount not to exceed the purchase price of any undeveloped real property), (b) review and approval by the Administrative Agent of articles of incorporation of such partner or partners, joint venture agreement or partnership agreement or other evidence of the Company's ownership interest in such entity, (c) execution and delivery to the Administrative Agent of an application and agreement for standby letter of credit for such entity in form satisfactory to the Administrative Agent, (d) review and approval by the Administrative Agent of resolutions or other indicia of authority for those persons signing on behalf of such entity, (e) execution and delivery of a guaranty agreement in form acceptable to the Administrative Agent by each of the partners or owners in such entity, (f) review and approval by the Administrative Agent of resolutions or other indicia of authority of those persons executing such guaranty agreements, (g) review and approval by the Administrative Agent of any other documents, instruments or agreements deemed necessary by the Administrative Agent with respect to the issuance of such Letters of Credit in respect of such...
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Use of Proceeds for Letters of Credit. The Letters of Credit shall be used by the Company, a Restricted Subsidiary or any Approved Joint Venture (i) to support bonding requirements for real estate site improvements or maintenance in favor of various municipal entities, (ii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance with respect to the Company's land and lot development activities, and (iii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance in connection with land acquisition activities.
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Use of Proceeds for Letters of Credit. The Letters of Credit shall be used by the Company, a Restricted Subsidiary or any Approved Joint Venture (i) to support bonding requirements for real estate site improvements or maintenance in favor of various municipal entities, (ii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance with respect to the Company's land and lot development activities, (iii) to secure the Company's, a Restricted Subsidiary's or any Approved Joint Venture's contractual performance in connection with land acquisition activities, and (iv) to provide admitted capital in connection with the Insurance Sub, subject to the limitations set forth in this Agreement. The remainder of Section 1.2, "LETTERS OF CREDIT," shall remain as originally written. 3. Section 8.6, "CONTINGENT LIABILITIES," of the Credit Agreement is hereby amended to recite in its entirely as follows:
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Related to Use of Proceeds for Letters of Credit

  • Use of Proceeds; Letters of Credit The Borrower will not permit the proceeds of any Advance or Letters of Credit to be used for any purpose other than those permitted by Section 5.09. The Borrower will not engage in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U). Neither the Borrower nor any Person acting on behalf of the Borrower has taken or shall take, nor permit any of the Borrower’s Subsidiaries to take any action which might cause any of the Loan Documents to violate Regulation T, U or X or any other regulation of the Board of Governors of the Federal Reserve System or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect, including without limitation, the use of the proceeds of any Advance or Letters of Credit to purchase or carry any margin stock in violation of Regulation T, U or X.

  • Use of Proceeds and Letters of Credit The proceeds of the Loans will be used only (i) to refinance amounts outstanding under the Existing Credit Agreement; (ii) to pay the fees, expenses and other transaction costs of the Transactions contemplated hereby, (iii) to fund working capital needs, (iv) to fund acquisitions permitted hereunder, together with related expenses, and engage in other transactions permitted hereby, (v) to provide funding in connection with capital expenditures, (vi) to make Restricted Payments permitted hereunder and (vii) for general corporate purposes of the Borrower and its Subsidiaries. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Board, including Regulations T, U and X. Letters of Credit will be issued only to support the working capital needs and general corporate obligations of the Borrower and its Subsidiaries relating to their respective lines of business. The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the United States, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

  • Use of Proceeds of the Loan Section 3.01. The Borrower shall cause the proceeds of the Loan to be applied to the financing of expenditures on the Project in accordance with the provisions of this Loan Agreement. Section 3.02. The proceeds of the Loan shall be allocated and withdrawn in accordance with the provisions of Schedule 3 to this Loan Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and ADB. Section 3.03. Except as ADB may otherwise agree, the Borrower shall procure, or cause to be procured, the items of expenditure to be financed out of the proceeds of the Loan in accordance with the provisions of Schedule 4 to this Loan Agreement. Section 3.04. Except as ADB may otherwise agree, the Borrower shall cause all items of expenditure financed out of the proceeds of the Loan to be used exclusively in the carrying out of the Project. Section 3.05. Withdrawals from the Loan Account in respect of Goods, Works, and Consulting Services shall be made only on account of expenditures relating to: (a) Goods which are produced in and supplied from and Works and Consulting Services which are supplied from such member countries of ADB as shall have been specified by ADB from time to time as eligible sources for procurement; and (b) Goods, Works, and Consulting Services which meet such other eligibility requirements as shall have been specified by ADB from time to time. Section 3.06. The Loan Closing Date for the purposes of Section 8.02 of the Loan Regulations shall be 30 June 2019 or such other date as may from time to time be agreed between the Borrower and ADB.

  • Use of Proceeds of Loans The Company shall use the proceeds of Loans for general lawful corporate purposes, including, without limitation financing working capital and capital expenditures, lending to its Subsidiaries and acquiring other Persons or businesses so long as the acquisition is approved by the board of directors of the Person being acquired.

  • CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters of Credit hereunder is subject to the performance by each of the Loan Parties of its Obligations to be performed hereunder at or prior to the making of any such Loans or issuance of such Letters of Credit and to the satisfaction of the following further conditions: