Lending Limitations Clause Samples
The Lending Limitations clause sets boundaries on the amount or type of credit a lender can extend to a borrower under an agreement. Typically, it may specify a maximum loan amount, restrict the use of funds to certain purposes, or prohibit additional borrowing without the lender’s consent. This clause serves to protect the lender by managing credit risk and ensuring that the borrower does not take on excessive debt that could jeopardize repayment.
Lending Limitations. Notwithstanding any other provision of this Agreement, each Client and the Lending Agent agree as follows:
(a) The aggregate market value of a Fund’s loaned securities outstanding at any one time shall not exceed an amount equal to twenty five (25%) percent (or such other percentage as such Client may specify to the Lending Agent in writing from time to time) of such Fund’s total assets.
(b) The market value of a Fund’s securities which are loaned to any one Borrower shall not at any time exceed an amount equal to five (5%) percent (or such other percentage as such Client may specify to the Lending Agent in writing from time to time) of such Fund’s total assets.
(c) Each Client shall advise the Lending Agent, in writing, and at such intervals as such Client shall deem appropriate, of the dollar amount of each Fund’s total assets and the dollar amounts which can be lent on behalf of such Fund pursuant to Sections 10(a) and 10(b) during the period to which such notice pertains (the “Lending Limitations”). Subject to receipt by the Lending Agent of the Lending Limitations to be provided by such Client pursuant to the preceding sentence, the Lending Agent shall have the responsibility to ensure the Program’s compliance with Sections 10(a) and 10(b), except to the extent that any non-compliance results from a change in the applicable Lending Limitations, provided, however, that in the event that the Lending Limitations as of any date (or other period specified by such Client) are less than the Lending Limitations in effect during the immediately preceding period, the Lending Agent shall promptly take such actions as may reasonably be necessary or appropriate to cause the Program to comply with such revised Lending Limitations.
Lending Limitations. Notwithstanding any other provision of this Agreement, the Client and the Lending Agent agree that aggregate market value of a Fund’s loaned securities outstanding at the time of any loan made pursuant hereto shall not exceed an amount equal to 33.3% of the market value of such Fund’s total assets (including the value of cash collateral held by the Lending Agent on behalf of such Fund) as communicated by the Client to the Lending Agent from time to time.
Lending Limitations. Notwithstanding any other provision of this Agreement, the Client and Bank agree that at the initiation of each Loan for a Lender, the aggregate market value of such Lender's Loaned Securities outstanding pursuant hereto, (and after giving effect to such Loan) shall not exceed an amount equal to 33.3% of the Market Value of such Lender's total assets (including the value of Collateral held by Bank on behalf of such Lender) as recorded on the books and records of the of Bank in its capacity as custodian for the Lenders (the "Lending Limit"). If at any time subsequent to the making of a Loan on behalf of any Lender pursuant hereto, the Lending Limit with respect to such Lender shall be exceeded for any reason, Bank shall recall outstanding Loans of such Lender by the amount of such excess no later than the close of business on the following Business Day to the extent commercially practicable. In the event that the Bank is unable to initiate the recall of such outstanding Loans by the close of such following Business Day, Bank shall use its best efforts to promptly notify the affected Lender of such fact.
Lending Limitations. The Bank shall comply with all Lending Limitations as found in Exhibit G of this Agreement.