Common use of Investment Securities and Commodities Clause in Contracts

Investment Securities and Commodities. (i) Each of it and its Subsidiaries has good title to all securities and commodities owned by it (except those sold under repurchase agreements), free and clear of any Lien, except to the extent such securities or commodities are pledged in the ordinary course of business to secure obligations of it or its Subsidiaries. (ii) It and its Subsidiaries and their respective businesses employ investment, securities, commodities, risk management and other policies, practices and procedures that it believes are prudent and reasonable in the context of such businesses.

Investment Securities and Commodities. (ia) Each of it Company and its Subsidiaries has good title to all securities and commodities owned by it (except those sold under repurchase agreements)) which are material to Company’s business on a consolidated basis, free and clear of any Lien, except to the extent such securities or commodities are pledged in the ordinary course of business to secure obligations of it Company or its Subsidiaries. Such securities and commodities are valued on the books of Company in accordance with GAAP in all material respects. (ii) It and its Subsidiaries and their respective businesses employ investment, securities, commodities, risk management and other policies, practices and procedures that it believes are prudent and reasonable in the context of such businesses.