Common use of Limitations on Loans, Investments and Other Obligations Clause in Contracts

Limitations on Loans, Investments and Other Obligations. (a) The Borrower shall not, without first obtaining the written approval of Lender, (i) purchase or make any commitment to purchase any stock, bonds, notes, debentures or other securities or obligations of or beneficial interest in, (ii) make any other investment in, (iii) make any loan to, or (iv) guarantee, assume, or otherwise become liable for any obligation of, any corporation, association, partnership, joint venture, trust, government or any agency or department thereof, or any other entity of any kind if the aggregate amount of all such purchases, investments, loans and guarantees exceeds in any twelve (12) month period the greater of ten percent (10%) of Total Plant or thirty percent (30%) of Net Worth. (b) The following shall not be included in the limitation on purchases investments, loans and guarantees in (a) above: (i) bonds, notes, debentures, stock, or other securities or obligations issued by or guaranteed by the United States government or any agency or instrumentality thereof; (ii) bonds, notes, debentures, stock, commercial paper, subordinated capital certificates, or other security or obligation of institutions whose senior unsecured debt obligations are rated by at least two nationally recognized rating organizations in either or its two highest categories; (iii) investments incidental to loans made by RTFC; (iv) bonds, notes, debentures, commercial paper or any other security of the National Rural Utilities Cooperative Finance Corporation; and (v) any deposit that is fully insured by the Federal Government.

Appears in 3 contracts

Samples: Loan Agreement (Madison River Capital LLC), Loan Agreement (Madison River Capital LLC), Loan Agreement (Madison River Capital LLC)

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Limitations on Loans, Investments and Other Obligations. (a) The Borrower shall not, without first obtaining the written approval of Lender, (i) purchase or make any commitment to purchase any stock, bonds, notes, debentures or other securities or obligations of or beneficial interest in, (ii) make any other investment in, (iii) make any loan to, or (iv) guarantee, assume, or otherwise become liable for any obligation of, any corporation, association, partnership, joint venture, trust, government or any agency or department thereof, or any other entity of any kind if the aggregate amount of all such purchases, investments, loans and guarantees exceeds in any twelve (12) month period the greater of ten percent (10%) of Total Plant or thirty percent (30%) of Net Worth. (b) The following shall not be included in the limitation on purchases investments, loans and guarantees in (a) above: (i) bonds, notes, debentures, stock, or other securities or obligations issued by or guaranteed by the United States government or any agency or instrumentality thereof; (ii) bonds, notes, debentures, stock, commercial paper, subordinated capital certificates, or other security or obligation of institutions whose senior unsecured debt obligations are rated by at least two nationally recognized rating organizations in either or its two highest categories; (iii) investments incidental to loans made by RTFC; (iv) bonds, notes, debentures, commercial paper or any other security of the National Rural Utilities Cooperative Finance Corporation; and (v) any deposit that is fully insured by the Federal Government.

Appears in 2 contracts

Samples: Loan Agreement (Emerging Communications Inc), Loan Agreement (Emerging Communications Inc)

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Limitations on Loans, Investments and Other Obligations. (a) The Borrower shall not, without first obtaining the written approval of Lender, (i) purchase or make any commitment to purchase any stock, bonds, notes, debentures or other securities or obligations of or beneficial interest in, (ii) make any other investment in, (iii) make any loan to, or (iv) guarantee, assume, or otherwise become liable for any obligation of, any corporation, association, partnership, joint venture, trust, government or any agency or department thereof, or any other entity of any kind if the aggregate amount of all such purchases, investments, loans and guarantees exceeds in any twelve (12) month period the greater of ten percent (10%) of 10%)of Total Plant or thirty percent (30%) of Net Worth. (b) The following shall not be included in the limitation on purchases investments, loans and guarantees in (a) above: (i) bonds, notes, debentures, stock, or other securities or obligations issued by or guaranteed by the United States government or any agency or instrumentality thereof; (ii) bonds, notes, debentures, stock, commercial paper, subordinated capital certificates, or other security or obligation of institutions whose senior unsecured debt obligations are rated by at least two nationally recognized rating organizations in either or of its two highest categories; (iii) investments iii)investments incidental to loans made by RTFC; (iv) bonds, notes, debentures, commercial paper or any other security of the National Rural Utilities Cooperative Finance Corporation; and (v) any deposit that is fully insured by the Federal Government.

Appears in 1 contract

Samples: Loan Agreement (Madison River Capital LLC)

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