Regulation U; Forms U-1 Clause Samples
The 'Regulation U; Forms U-1' clause establishes the borrower's obligation to comply with Federal Reserve Board regulations concerning the use of credit for purchasing or carrying margin stock. Specifically, it requires the borrower to complete and deliver Form U-1, which certifies the purpose of the loan and ensures that the lender is not violating margin lending restrictions. This clause is essential for ensuring that both parties adhere to federal securities laws, thereby protecting the lender from regulatory penalties and clarifying the permitted uses of the loan proceeds.
Regulation U; Forms U-1. The Lenders shall be satisfied that the Loans and the use of proceeds thereof comply in all respects with Regulation U. To the extent required by Regulation U, the Administrative Agent shall have received a copy of either (i) Form FR U-1, duly executed and delivered by the Borrower and completed for delivery to each Lender, in form acceptable to the Administrative Agent, or (ii) a current list of the assets of the Borrower (including all Margin Stock from the Borrower), in form acceptable to the Administrative Agent and in compliance with Section 221.3(c)(2) of Regulation U.