Common use of Regulatory Statement Clause in Contracts

Regulatory Statement. Pursuant to the terms of an order issued by the New Mexico Public Regulation Commission and a stipulation that has been approved by the New Mexico Public Regulation Commission, the Company is required to include the following separateness covenants in any debt instrument: The Company, PSNM and TNMP are being operated as separate corporate and legal entities. In agreeing to make loans to the Company, the Company's lenders are relying solely on the creditworthiness of the Company based on the assets owned by the Company, and the repayment of the loan will be made solely from the assets of the Company and not from any assets of PSNM or TNMP; and the Company's lenders will not take any steps for the purpose of procuring the appointment of an administrative receiver or the making of an administrative order for instituting any bankruptcy, reorganization, insolvency, wind up or liquidation or any like proceeding under applicable law in respect of PSNM or TNMP.

Regulatory Statement. Pursuant to the terms of an order issued by the New Mexico Public Regulation Commission and a stipulation that has been approved by the New Mexico Public Regulation Commission, the Company Guarantor is required to include the following separateness covenants in any debt instrument: The Company, Guarantor and PSNM and TNMP are being operated as separate corporate and legal entities. In agreeing to make loans to the CompanyBorrower, the Company's lenders Lenders are relying solely on the creditworthiness of the Company Loan Parties based on the assets owned by the CompanyLoan Parties, and the repayment of the loan will be made solely from the assets of the Company Loan Parties and not from any assets of PSNM or TNMPPSNM; and the Company's lenders Lenders will not take any steps for the purpose of procuring the appointment of an administrative receiver or the making of an administrative order for instituting any bankruptcy, reorganization, insolvency, wind up or liquidation or any like proceeding under applicable law in respect of PSNM or TNMPPSNM.