No Reliance on Margin Stock Clause Samples
The "No Reliance on Margin Stock" clause establishes that the parties to an agreement are not depending on margin stock as collateral or as a source of value for the transaction. In practice, this means that any loans or credit extended under the agreement are not secured by, nor contingent upon, the value of margin stock, which typically refers to publicly traded securities that can be purchased on margin. This clause is important for ensuring compliance with regulations such as Federal Reserve Board Regulation U in the United States, which restricts the use of margin stock as collateral for certain types of loans, thereby reducing regulatory risk and clarifying the basis of the parties' financial arrangements.
No Reliance on Margin Stock. Each of the Banks represents to the Administrative Agent and each of the other Banks that it in good faith is not relying upon any "margin stock" (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each of the Lenders represents to each Agent and each of the other Lenders that it in good faith is not relying upon any “margin stock” (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each of the Lenders represents to the Administrative Agent and the other Lenders that it in good faith is not relying upon any Margin Stock as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each Bank represents to the Agent and each of the other Banks that it in good faith is not relying upon any Margin Stock as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each of the Lender Parties represents to the Administrative Agent and each of the other Lender Parties that it in good faith is not relying upon any "margin stock" (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each Lender represents to the Agent and each of the other Lenders that it in good faith is not relying upon any Margin Stock as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each of the Purchasers represents to the Administrative Agent and each of the other Purchasers that it in good faith is not relying upon any "margin stock" (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each Lender and each L/C Lender represents to each Agent and each of the other Lenders and L/C Lenders that it in good faith is not relying upon any Margin Stock as collateral in the extension or maintenance of the credit provided for in this Agreement.
No Reliance on Margin Stock. Each of the Pari Passu Creditors represents to each other party that it in good faith is not relying upon any "margin stock" (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement or the Pari Passu Financing Agreements. Common Terms Agreement 112 123
No Reliance on Margin Stock. Section 11.08. Governing Law; Submission to Jurisdiction . Section 11.09.