Common use of Prohibited Use of Loan Clause in Contracts

Prohibited Use of Loan. The Loan proceeds will not be used: (a) for any impermissible purpose under the SSBCI or the SSBCI-MLPP, including any impermissible purposes set forth in Appendix A, Section B(4) of the Participation Agreement; (b) to repay delinquent Federal or State income taxes unless the Borrower has a payment plan in place with the relevant taxing authority; (c) to repay taxes held in trust or escrow, e.g. payroll or sales taxes; (d) to reimburse funds owed to any owner, including any equity injection or injection of capital for the business’ continuance; (e) to purchase any portion of the ownership interest of any owner of the business; or (f) for the development of a stadium or arena for use by a professional sports team or development of a casino or property associated or affiliated with the operation of a casino as prohibited by the Act (see MCL 125.2088c(3)(a) and (b)), or to induce the Borrower, a qualified business, or small business to leave the State of Michigan, or to contribute to the violation of internationally recognized workers’ rights, of workers in a country other than the US, or to fund an entity incorporated in a tax haven country, as prohibited by the Act (see MCL 125.2088c(4)(c), (d), and (e)).

Prohibited Use of Loan. The Loan proceeds will not be used: (a) for any impermissible purpose under the SSBCI or the SSBCI-MLPP, including any impermissible purposes set forth in Appendix AB, Section B(4) of the Participation AgreementB.7; (b) to repay delinquent Federal or State income taxes unless the Borrower has a payment plan in place with the relevant taxing authority; (c) to repay taxes held in trust or escrow, e.g. payroll or sales taxes; (d) to reimburse funds owed to any owner, including any equity injection or injection of capital for the business’ continuance; (e) to purchase any portion of the ownership interest of any owner of the business, except for the purchase of an interest in an employee stock ownership plan qualifying under Section 401 of the Internal Revenue Code, worker cooperative, or related vehicle, provided that the transaction results in the employee stock ownership plan or other employee-owned entity holding a majority interest (on a fully diluted basis) in the business; or (f) for the development of a stadium or arena for use by a professional sports team or development of a casino or property associated or affiliated with the operation of a casino as prohibited by the Act (see MCL 125.2088c(3)(a) and (b)), or to induce the Borrower, a qualified business, or small business to leave the State of Michigan, or to contribute to the violation of internationally recognized workers’ rights, of workers in a country other than the US, or to fund an entity incorporated in a tax haven country, as prohibited by the Act (see MCL 125.2088c(4)(c), (d), and (e)).

Prohibited Use of Loan. The Loan proceeds will not be used: (a) for any impermissible purpose under the SSBCI or the SSBCI-MLPP, including any impermissible purposes set forth in Appendix AXxxxxxxx X, Section B(4) of the Participation AgreementXxxxxxx X.0; (b) to repay delinquent Federal or State income taxes unless the Borrower has a payment plan in place with the relevant taxing authority; (c) to repay taxes held in trust or escrow, e.g. payroll or sales taxes; (d) to reimburse funds owed to any owner, including any equity injection or injection of capital for the business’ continuance; (e) to purchase any portion of the ownership interest of any owner of the business, except for the purchase of an interest in an employee stock ownership plan qualifying under Section 401 of the Internal Revenue Code, worker cooperative, or related vehicle, provided that the transaction results in the employee stock ownership plan or other employee-owned entity holding a majority interest (on a fully diluted basis) in the business; or (f) for the development of a stadium or arena for use by a professional sports team or development of a casino or property associated or affiliated with the operation of a casino as prohibited by the Act (see MCL 125.2088c(3)(a) and (b)), or to induce the Borrower, a qualified business, or small business to leave the State of Michigan, or to contribute to the violation of internationally recognized workers’ rights, of workers in a country other than the US, or to fund an entity incorporated in a tax haven country, as prohibited by the Act (see MCL 125.2088c(4)(c), (d), and (e)).