Common use of Investments or Loans Clause in Contracts

Investments or Loans. Such Borrower shall not, and shall not permit any of its Subsidiaries to, make or permit to exist investments or loans in or to any other Person, except (i) investments in short-term direct obligations of the United States Government, (ii) investments in negotiable certificates of deposit maturing within thirty (30) days from the date of issuance, issued by any Lender or an affiliate of any Lender or by any other federally insured bank (provided that any such investments do not exceed the limit of any such federal insurance) satisfactory to Agent, in its reasonable discretion, and payable to the order of such Borrower or any of its Subsidiaries or to bearer and delivered to Agent, (iii) investments in commercial paper issued by companies organized under the laws of the United States or any state thereof, maturing in ninety (90) days or less from the date of issuance, which at the time of acquisition by such Borrower or any such Subsidiary is rated A-1/P-1 by Standard & Poor's Rating Services (a division of XxXxxx-Xxxx Companies, Inc.) or Xxxxx'x Investor Services, Inc., (iv) demand deposits in banks and similar financial institutions in reasonable amounts necessary to such Borrower's and its Subsidiaries' operations, (v) advances and reimbursements for travel and expenses to such Borrower's or its Subsidiaries' officers, directors or employees in the ordinary course of business and consistent with past practices, (vi) investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business, (vii) investments existing on the date hereof by such Borrower in its Subsidiaries and the Joint Ventures and described on Schedule 8.4, (viii) investments made after March 31, 1995 by such Borrower in, and loans made after March 31, 1995 by such Borrower to, Subsidiaries of such Borrower (other than Excluded Subsidiaries, it being understood that the exception in this clause (ix) permitting certain investments in, and loans to, Subsidiaries shall not permit any such investment in, or loan to, any Excluded Subsidiary) and the Joint Ventures provided that the aggregate amount of such investments and outstanding loans does not exceed $1,000,000 in the aggregate at any time with respect to all Borrowers, (x) an intercompany loan by Rail to Deco after the date of the Original Agreement in an amount up to $3,500,000, provided that such intercompany loan is evidenced by a promissory note duly pledged to Agent to secure payment and performance of Rail's Liabilities, (xi) investments evidenced by the issuance of Rail's capital stock to consummate the acquisition of an Excluded Subsidiary in a Stock Acquisition in accordance with Subsection 8.3(A), (xii) intercompany loans by Deco to Rail after the date of the Original Agreement, provided that (1) the aggregate principal amount of all outstanding intercompany loans by Deco to Rail cannot at any time exceed the tangible net worth of Deco at such time (determined in accordance with GAAP, except in no event shall any account or note receivable due to Deco from Rail be treated as an asset for purposes of determining such tangible net worth), (2) no such intercompany loan may be made until such time as the aggregate principal amount of the intercompany loan by Rail to Deco existing on the date of the Original Agreement is paid in full and (3) no such loan may be made if, after giving effect thereto, Deco could reasonably be deemed to (a) be "insolvent" (as such term is used in Section 548 of the Bankruptcy Code), (b) have "unreasonably small capital" (as such term is used in Section 548 of the Bankruptcy Code), or (c) have debts beyond its "ability to pay as such debts matured" (as such term is used in Section 548 of the Bankruptcy Code), and (xii) additional investments not to exceed $100,000 in the aggregate for all Borrowers and their Subsidiaries at any time outstanding.

Investments or Loans. Such Borrower shall not, and shall not permit any of its Subsidiaries to, make or permit to exist investments or loans in or to any other Person, except (i) investments in short-term direct obligations of the United States Government, (ii) investments in negotiable certificates of deposit maturing within thirty (30) days from the date of issuance, issued by any Lender or an affiliate of any Lender or by any other federally insured bank (provided that any such investments do not exceed the limit of any such federal insurance) satisfactory to Agent, in its reasonable discretion, and payable to the order of such Borrower or any of its Subsidiaries or to bearer and delivered to Agent, (iii) investments in commercial paper issued by companies organized under the laws of the United States or any state thereof, maturing in ninety (90) days or less from the date of issuance, which at the time of acquisition by such Borrower or any such Subsidiary is rated A-1/P-1 by Standard & Poor's Rating Services (a division of XxXxxx-Xxxx Companies, Inc.) Corporation or Xxxxx'x Investor Services, Inc., (iv) demand deposits in banks and similar financial institutions in reasonable amounts necessary to such Borrower's and its Subsidiaries' operations, (v) advances and reimbursements for travel and expenses to such Borrower's or its Subsidiaries' officers, directors or employees in the ordinary course of business and consistent with past practices, (vi) investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business, (vii) investments existing on the date hereof by such Borrower in its Subsidiaries and the Joint Ventures and described on Schedule 8.4, (viii) investments made after March 31, 1995 by such Borrower in, and loans made after March 31, 1995 by such Borrower to, Subsidiaries of such Borrower (other than Excluded Subsidiaries, it being understood that the exception in this clause (ix) permitting certain investments in, and loans to, Subsidiaries shall not permit any such investment in, or loan to, any Excluded Subsidiary) and the Joint Ventures provided that the aggregate amount of such investments and outstanding loans does not exceed $1,000,000 in the aggregate at any time with respect to all Borrowers, (x) an intercompany loan by Rail to Deco after the date of the Original Agreement hereof in an amount up to $3,500,000, provided that such intercompany loan is evidenced by a promissory note duly pledged to Agent to secure payment and performance of Rail's Liabilities, (xi) investments evidenced by the issuance of Rail's capital stock to consummate the acquisition of an Excluded Subsidiary in a Stock Acquisition in accordance with Subsection 8.3(A), (xii) intercompany loans by Deco to Rail after the date of the Original Agreementhereof, provided that (1) the aggregate principal amount of all outstanding intercompany loans by Deco to Rail cannot at any time exceed the tangible net worth of Deco at such time (determined in accordance with GAAP, except in no event shall any account or note receivable due to Deco from Rail be treated as an asset for purposes of determining such tangible net worth), (2) no such intercompany loan may be made until such time as the aggregate principal amount of the intercompany loan by Rail to Deco existing on the date of the Original Agreement hereof is paid in full and (3) no such loan may be made if, after giving effect thereto, Deco could reasonably be deemed to (a) be "insolvent" (as such term is used in Section 548 of the Bankruptcy Code), (b) have "unreasonably small capital" (as such term is used in Section 548 of the Bankruptcy Code), or (c) have debts beyond its "ability to pay as such debts matured" (as such term is used in Section 548 of the Bankruptcy Code), and (xii) additional investments not to exceed $100,000 in the aggregate for all Borrowers and their Subsidiaries at any time outstanding.

Investments or Loans. Such Borrower shall not, and shall not permit any of its Subsidiaries to, make or permit to exist investments or loans in or to any other Person, except (i) investments in short-term direct obligations of the United States Government, (ii) investments in negotiable certificates of deposit maturing within thirty (30) days from the date of issuance, issued by any Lender or an affiliate of any Lender or by any other federally insured bank (provided that any such investments do not exceed the limit of any such federal insurance) satisfactory to Agent, in its reasonable discretion, and payable to the order of such Borrower or any of its Subsidiaries or to bearer and delivered to Agent, (iii) investments in commercial paper issued by companies organized under the laws of the United States or any state thereof, maturing in ninety (90) days or less from the date of issuance, which at the time of acquisition by such Borrower or any such Subsidiary is rated A-1A- 1/P-1 by Standard & Poor's Rating Services (a division of XxXxxx-Xxxx Companies, Inc.) or Xxxxx'x Investor Services, Inc., (iv) demand deposits in banks and similar financial institutions in reasonable amounts necessary to such Borrower's and its Subsidiaries' operations, (v) advances and reimbursements for travel and expenses to such Borrower's or its Subsidiaries' officers, directors or employees in the ordinary course of business and consistent with past practices, (vi) investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business, (vii) investments existing on the date hereof by such Borrower in its Subsidiaries and the Joint Ventures and described on Schedule 8.4, (viii) investments loans made after March 31, 1995 from time to time by such Borrower inRail to any Wholly-Owned Subsidiary, and loans made after March 31from time to time by any Wholly-Owned Subsidiary to Rail, 1995 by such Borrower to, Subsidiaries of such Borrower (other than Excluded Subsidiaries, it being understood that the exception in this clause (ix) permitting certain investments in, and loans to, Subsidiaries shall not permit any such investment in, or loan to, any Excluded Subsidiary) and the Joint Ventures provided that the aggregate outstanding principal amount of all such investments and outstanding loans does not exceed at no time exceeds $1,000,000 in the aggregate at any time with respect to all Borrowers2,000,000, (xix) an intercompany loan without limiting the foregoing clause (viii), (a) loans made from time to time by Rail to Deco after the date of the Original Agreement in an amount up to $3,500,000Deco, provided that (1) the aggregate outstanding principal amount of all such intercompany loan is loans at no time exceeds $7,500,000, and (2) such loans are evidenced by a promissory note duly pledged to Agent to secure payment and performance of Rail's Liabilities, (xib) investments evidenced loans made from time to time by the issuance of Rail's capital stock Rail to consummate the acquisition of an Excluded Subsidiary in a Stock Acquisition in accordance with Subsection 8.3(A), (xii) intercompany loans by Deco to Rail after the date of the Original AgreementAST, provided that (1) the aggregate outstanding principal amount of all outstanding intercompany such loans by Deco to Rail cannot at any no time exceed the tangible net worth of Deco at such time (determined in accordance with GAAPexceeds $3,000,000, except in no event shall any account or note receivable due to Deco from Rail be treated as an asset for purposes of determining such tangible net worth), and (2) no such intercompany loans are evidenced by a promissory note duly pledged to Agent to secure payment and performance of Rail's Liabilities, and (c) the loan may be made until such time as by Rail to its Wholly-Owned Subsidiary, United Railway Signal Group, in the aggregate original principal amount of $2,050,000 made on or about October 31, 1997, provided that (1) the intercompany loan by Rail to Deco existing on the date aggregate outstanding principal amount of the Original Agreement is paid in full and (3) no such loan may be at no time exceeds $2,050,000 minus the amount of all prepayments and repayments made if, after giving effect thereto, Deco could reasonably be deemed to (a) be "insolvent" (as such term is used in Section 548 of the Bankruptcy Code), (b) have "unreasonably small capital" (as such term is used in Section 548 of the Bankruptcy Code), or (c) have debts beyond its "ability to pay as such debts matured" (as such term is used in Section 548 of the Bankruptcy Code)thereon, and (xii2) such loans are evidenced by a promissory note duly pledged to Agent to secure payment and performance of Rail's Liabilities, and (x) additional investments not to exceed $100,000 in the aggregate for all Borrowers and their Subsidiaries at any time outstanding."