Common use of Rule 3a-7 Clause in Contracts

Rule 3a-7. Notwithstanding anything in this Section 2.07, the Borrower shall not, and the Servicer shall not on the Borrower’s behalf, purchase, sell or substitute any Loan Asset with the primary purpose of recognizing gain or decreasing losses on such Loan Asset or in any manner that would cause the Borrower not to be in compliance with the requirements of Rule 3a-7 under the 1940 Act.

Rule 3a-7. Notwithstanding anything in this Section 2.07, the Borrower shall not, and the Servicer shall not on the Borrower’s behalf, purchase, sell or substitute any Loan Asset with the primary purpose of recognizing gain or decreasing losses on such Loan Asset resulting from market value changes or in any manner that would cause the Borrower not to be in compliance with the requirements of Rule 3a-7 under the 1940 Act.