Common use of Policy Loans Clause in Contracts

Policy Loans. The Company may pledge or assign the Policy, subject to the terms and conditions of this Agreement, for the sole purpose of securing a loan from the Insurer or from a third party. The amount of such loan, including accumulated interest thereon shall not exceed the lesser of (i) the amount of the premiums on the Policy paid by the Company hereunder or (ii) the cash surrender value of the Policy (as defined herein) as of the date to which premiums have been paid. Interest charges on such loan shall be paid by the Company. If the Company so encumbers the Policy, other than by a policy loan from the Insurer, then, upon death of the Executive or upon election of the Executive hereunder to purchase the Policy from the Company, the Company shall take all action necessary to secure the release or discharge of such encumbrance.

Policy Loans. The Company Corporation may pledge or assign the Policy, subject to the terms and conditions of this Agreement, for the sole purpose of securing a loan from the Insurer or from a third party. The amount of such loan, including accumulated interest thereon thereon, shall not exceed the lesser of (i) the amount of the premiums on the Policy paid by the Company hereunder Corporation hereunder, or (ii) the cash surrender value of the Policy (as defined hereintherein) as of the date to which premiums have been paid. Interest charges on such loan shall be paid by the CompanyCorporation. If the Company Corporation so encumbers the Policy, other than by a policy loan from the Insurer, then, upon the death of the Executive Employee and his spouse, or upon the election of the Executive Trustee(s) hereunder to purchase the Policy from the CompanyCorporation, the Company Corporation shall promptly take all action necessary to secure the release or discharge of such encumbrance.