Availability to Cover Losses. The funds committed to the secondary capital account and any interest paid into the account may be used by [name of Credit Union] to cover any and all operating losses that exceed the Credit Union’s net worth exclusive of allowance accounts for loan losses, and in the event the funds are so used, [name of Credit Union] will under no circumstances restore or replenish those funds to the United States Department of the Treasury. Dividends are not considered operating losses and are not eligible to be paid out of secondary capital.
Appears in 35 contracts
Samples: Securities Purchase Agreement, Securities Purchase Agreement, Securities Purchase Agreement
Availability to Cover Losses. The funds committed to the secondary capital account Secondary Capital Account and any interest paid into the account may be used by [name of Credit Union] to cover any and all operating losses that exceed the Credit Union’s net worth exclusive of allowance accounts for loan losses, and in the event the funds are so used, [name of Credit Union] will under no circumstances restore or replenish those funds to the United States Department of the Treasury. Dividends are not considered operating losses and are not eligible to be paid out of secondary capital.
Appears in 3 contracts
Samples: Securities Purchase Agreement, Securities Purchase Agreement, Securities Purchase Agreement
