10Securities Activities Clause Samples
The 'Securities Activities' clause defines the rules and limitations regarding a party's involvement in buying, selling, or dealing in securities within the context of the agreement. It typically outlines what types of securities transactions are permitted or restricted, and may require compliance with applicable laws and regulations, such as insider trading rules or registration requirements. This clause serves to ensure that all parties conduct securities-related activities in a lawful and transparent manner, thereby reducing legal and regulatory risks for both parties.
10Securities Activities. Neither Borrower nor Guarantor is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any "margin stock" (as defined in Regulation U of the Board of Governors of the Federal Reserve System in effect from time to time), and not more than 25% of the value of the assets of either such entity consists of such margin stock. Furthermore, none of the proceeds of the Loan will be used to purchase or carry any "margin stock" and no portion of the proceeds of the Loan will be extended by Borrower to others for the purpose of purchasing or carrying margin stock. None of the transactions contemplated in this Agreement (including the use of the proceeds from the Loan) will violate or result in the violation of Section 7 of the Securities Exchange Act of 1934, as amended, or any regulations issued under it, including Regulations G, T, U and X of the Federal Reserve Board, 12 C.F.R. Part 11.