Collateral Security for Loans. (a) As a condition precedent to making any Loan to any Borrower or continuing any Loan made to any Borrower, the Borrower covenants and agrees that in the event that (i) the Borrower’s outstanding borrowings from all sources immediately after the Loan would exceed 10% of its total assets, (ii) the Borrower’s outstanding borrowings from all sources exceed 10% of the Borrower’s total assets for any reason (such as a decline in net asset value or because of shareholder redemptions), or (iii) the Borrower has Outstanding Secured Borrowings, within one (1) Business Day (except as required by Section 3.11(b) below), the Borrower will
Collateral Security for Loans. As a condition precedent to making any Loan to any Borrower or continuing any Loan made to any Borrower hereunder, (a) the Lender may require, by written notice to the Borrower or (b) the Lender shall require in the event that the Borrower’s outstanding borrowings from all sources immediately after the Loan would exceed 10% of its total assets, or the Borrower has Outstanding Secured Borrowings, that the Borrower pledge stock or other securities as collateral for such Loan (“Pledge Demand”). The minimum market value of the stock and other portfolio securities of the Borrower required to be pledged to the Lender hereunder with respect to any Secured Loan shall be determined by the Lender in its discretion but, in all cases, shall be not less than the 102% of the outstanding principal value of the loan. Each pledge of collateral required pursuant to this Section 3.11 shall be made in accordance with and subject to the terms and conditions set forth in a security agreement in form satisfactory to Borrower and Lender, and shall be effected (a) in the case of any pledge required as a condition precedent to making any Secured Loan hereunder, prior to making such Secured Loans, and (b) in the case of any pledge required as a condition precedent to continuing any Loan hereunder, within 24 hours after delivery to the Borrower of the Pledge Demand therefor or the occurrence of the conditions specified in (b) above.
Collateral Security for Loans. (a) As a condition precedent to making any Loan to any Borrower or continuing any Loan made to any Borrower, the Borrower covenants and agrees that in the event that (i) the Borrower’s outstanding borrowings from all sources immediately after the Loan would exceed 10% of its total assets or (ii) the Borrower’s outstanding borrowings from all sources exceed 10% of the Borrower’s total assets for any reason (such as a decline in net asset value or because of shareholder redemptions), within one (1) Business Day (except as required by Section 3.11(b) below), the Borrower will
Collateral Security for Loans. As a condition precedent to making any Loan to any Borrower or continuing any Loan made to any Borrower hereunder, (a) the Lender may require, by written notice to the Borrower or (b) the Lender shall require in the event that the Borrower's outstanding borrowings from all sources immediately after the Loan would exceed 10% of its total assets, or the Borrower has Outstanding Secured Borrowings, that the
Collateral Security for Loans. As a condition precedent to making any Loan or continuing any Loan made hereunder, if any Borrower shall then have outstanding any secured Indebtedness with any other creditor (other than Indebtedness consisting of investments purchased by a Borrower in accordance with its Prospectus for which assets are segregated or cover is maintained in accordance with the 1940 Act), the Bank may require, by written notice to such Borrower substantially in the form attached hereto as EXHIBIT B (a "PLEDGE DEMAND") that such Borrower pledge certain of its portfolio securities and other assets, to be determined at the time of such notice (its "PLEDGED SECURITIES") as collateral for such Loan. The minimum market value of the stock and other portfolio securities of any Borrower required to be pledged to the Bank hereunder with respect to any Loan to such Borrower shall be determined by the Bank in its discretion and stated in the Pledge Demand for such Loan. Upon demand by the Bank, the applicable Borrower shall forthwith grant to the Bank a security interest in the Pledged Securities and deliver to the Bank a Pledge Agreement with respect to such Pledged Securities, a Collateral Agency Agreement among such Borrower, the Bank and the Custodian for such Pledged Securities, and instruct the Custodian to take any action necessary under the Collateral Agency Agreement as the Bank may require to realize the full benefits of this Section 2.13 and the security interest described herein.
Collateral Security for Loans. As a condition precedent to making any Loan or continuing any Loan made hereunder, at any time after a change in the condition or affairs (financial or otherwise) of the Borrower reasonably deemed by the Required Banks to be adverse and material, the Agent may require the Borrower to pledge its portfolio securities and other assets (the "Pledged Securities") to the Agent, for the benefit of the Banks, as collateral for the Obligations, as contemplated in and subject to the terms and conditions of the Pledge Agreement. Upon demand by the Agent, the Borrower shall forthwith grant to the Agent, for the benefit of the Banks, a security interest in the Pledged Securities and deliver to the Agent a Pledge Agreement and Collateral Agency Agreement with respect to such Pledged Securities, and instruct the Custodian to take any action necessary under the Collateral Agency Agreement as the Agent may require to realize the full benefits of this Section 2.14 and the security interest described herein. Section 2.15.
