Common use of Character of Loan; Usury Clause in Contracts

Character of Loan; Usury. The proceeds of the Loan will be used solely for the purposes of (a) acquiring the stock of Mount Snow; (b) funding the debt service reserve to Lender for the Note; and (c) payment of Construction Costs (hereinafter defined). The Loan is not being made for the purpose of purchasing or carrying margin stocks, and Borrower agrees to execute all instruments necessary to comply with all of the requirements of Regulation U of the Federal Reserve System. The Loan is an exempt transaction under the Truth-in-Lending Act. Neither the performance by Borrower of its obligations hereunder or under the Loan Documents or any other documents and instruments delivered pursuant hereto or in connection herewith nor the interest rate under the Note nor any other aspect of the transaction contemplated hereby shall cause the Loan to be usurious or illegal under applicable law.

Character of Loan; Usury. The proceeds of the Loan will be used solely for the purposes of (a) acquiring the stock of Mount SnowLBO; (b) funding the debt service reserve to Lender for the Note; and (c) payment of Construction Costs (hereinafter defined). The Loan is not being made for the purpose of purchasing or carrying margin stocks, and Borrower agrees to execute all instruments necessary to comply with all of the requirements of Regulation U of the Federal Reserve System. The Loan is an exempt transaction under the Truth-in-Lending Act. Neither the performance by Borrower of its obligations hereunder or under the Loan Documents or any other documents and instruments delivered pursuant hereto or in connection herewith nor the interest rate under the Note nor any other aspect of the transaction contemplated hereby shall cause the Loan to be usurious or illegal under applicable law.