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Use of Leverage Sample Clauses

Use of Leverage. May Reduce The Partnership's Profitability Or Cause Losses Through Liquidation. The Partnership may borrow funds for the purpose of making Mortgage Investments or for any other proper partnership purpose on any terms commercially available and may assign all or a portion of its Mortgage Investment portfolio as security for such loans. The maximum aggregate indebtedness which may be incurred by the Partnership is fifty percent (50%) of the value of the Mortgage Investment portfolio. The Partnership has obtained from a commercial bank a line of credit in the amount of $3,000,000. As of June 30, 1996 the Partnership has borrowed $2,892,000 which represents 20.37% of the outstanding principal balance of the Mortgage Investment portfolio. The General Partners anticipate engaging in such borrowing when the interest rate at which the Partnership can borrow funds is somewhat less than the rate that can be earned by the Partnership on its Mortgage Investments (See "INVESTMENT OBJECTIVES AND CRITERIA - Borrowing"). Interest rate fluctuations may have a particularly adverse effect on the Partnership if it is using such borrowed money to fund Mortgage Investments. Such borrowed money will bear interest at a variable rate, whereas the Partnership may be making fixed rate loans. Therefore, if prevailing interest rates rise, the Partnership's cost of money could exceed the income earned from that money, thus reducing the Partnership's profitability or causing losses through liquidation of Mortgage Investments in order to repay the debt on the borrowed money or default if the Partnership cannot cover the debt on the borrowed money.
Use of Leverage. May Reduce The Partnership's Profitability Or Cause Losses Through Liquidation......................................................... 13 Fluctuations In Interest Rates May Effect Return On Investment...........
Use of Leverage. As provided in the 1940 Act and subject to certain exceptions, the Fund may issue debt with the condition that immediately after issuance the value of its total assets, less certain ordinary course liabilities, exceeds 300% of the amount of the debt outstanding. Thus, as noted above, the Fund may use leverage in the form of borrowings in an amount up to 33 1/3% of the Fund’s total assets (including the proceeds of such leverage). The total leverage of the Fund is currently expected to range between 25% and 32% of the Fund’s total assets. The Fund seeks a leverage ratio, based on a variety of factors including market conditions and the Investment Adviser’s market outlook, for which the rate of return, net of applicable Fund expenses, on the Fund’s investment portfolio investments purchased with leverage exceeds the costs associated with such leverage. The Fund does not currently intend to issue or register preferred shares or commercial paper. At April 30, 2013, the Fund had loans outstanding under the Fund’s Credit Agreement with State Street of $107,000,000. During the six months ended April 30, 2013, the Fund had borrowings under the Credit Agreement as follows: The Fund’s borrowings under its credit facility at April 30, 2013 equaled approximately 26% of the Fund’s total assets (including the proceeds of such leverage). The Fund’s asset coverage ratio as of April 30, 2013 was 388%. See “Risks and Special ConsiderationsLeverage Risk” for a brief description of the Fund’s Credit Agreement with State Street. Assuming the utilization of leverage in the amount of 26% of the Fund’s total assets and an annual interest rate of 1.092% payable on such leverage based on market rates as of the date of this prospectus, the additional income that the Fund must earn (net of expenses) in order to cover such leverage is approximately $1,266,720. Actual costs of leverage may be higher or lower than that assumed in the previous example. Following the completion of an offering, the Fund may increase the amount of leverage outstanding. The Fund may engage in additional borrowings in order to maintain the Fund’s desired leverage ratio. Leverage creates a greater risk of loss, as well as a potential for more gain, for the common shares than if leverage were not used. Interest on borrowings may be at a fixed or floating rate and generally will be based on short-term rates. The costs associated with the Fund’s use of leverage, including the issuance of such leverage and the pa...
Use of Leverage. Leverage is an integral part of the investment strategy of certain types of non­traditional investment funds. Leverage should be viewed as an overlay used to optimise the trade­off between risk and return. Hence leverage is mainly associated with those styles that have relatively low exposure to market or duration risk, principally involv- ing the use of arbitrage techniques. Leverage cannot be viewed in isolation, but has to be considered in conjunction with all the risks inherent in a transaction. Consequently, in relatively higher risk styles such as “emerging markets” where there is less opportunity to lay off risk through the futures markets or short selling, leverage, if used, is normally used sparingly. Xxxxxxxx therefore has to be evaluated relative to the investment style and the steps that a manager is taking to lay off various risks. Excessive leverage relative to the investment style should be avoided. Overall, the leverage of a fund has to be tightly monitored because of the influence it has on the rapidity with which changes in market, credit and liquidity risk can feed through to the value of a fund.
Use of LeverageThe information in “Use of Leverage” is set forth in the Fund’s most recent annual report on Form N-CSR for the year ended June 30, 2021 in the section entitled “Summary of Updated Information Regarding the Fund”, which is incorporated by reference into this Prospectus, and in any future filings we may file with the SEC that are incorporated by reference into this Prospectus. See “Incorporation by Reference” below for more information.
Use of Leverage. (a) The Partnership may borrow money from any Person, make guarantees to any Person or incur any other obligation in connection with the Partnership’s investment activities, or the activities of any Person in which the Partnership acquires, directly or indirectly, or proposes to acquire, an Investment (or to any subsidiary thereof), for any purpose including, without limitation, to make, hold or dispose of any Investment, provide permanent financing or refinancing, provide cash collateral to secure outstanding letters of credit or provide interim financing to the extent necessary to consummate the acquisition of Investments prior to the completion of permanent debt financing therefor or prior to the receipt of Funded Contributions. Except to the extent otherwise limited in the Confidential Memorandum, the amount of leverage used from time to time will be determined by the General Partner in its sole discretion. The General Partner, on behalf of the Partnership, may pledge to a lender Investments or the Unfunded Commitments of Limited Partners as security for any borrowing. (b) Without limiting Section 6.2(a), the General Partner shall have the right, at its option, to cause the Partnership to assign the right to call on the Partners and collect capital contributions from the Partners (but solely to the extent of their Unfunded Commitments) for the purposes of providing security to Persons providing borrowing facilities. The Partnership shall request the Partners, upon the written request from the General Partner to the Partnership, for the benefit of one or more lenders or other Persons extending credit to the Partnership, (i) to acknowledge its obligations pursuant to this Agreement to make Funded Contributions to the Partnership, which may, as determined by the General Partner, include an acknowledgement that the General Partner, or the lender on behalf of the General Partner (in accordance with the agreements between such lender and the Partnership), may cause the Partnership to call such Funded Contributions in accordance with this Agreement, as applicable, to pay the outstanding obligations to such lenders without, except as expressly set forth in this Agreement, defense, counterclaim or offset of any kind; provided that the liability of the Partners to make Funded Contributions shall not be increased thereby and such security interest and/or acknowledgment shall not result in the loss of a Partner’s limited liability status under this Agreement, (ii)...
Use of LeverageThe Partnership has the authority to borrow money for cash management purposes. The Partnership shall not borrow money for investment purposes. For greater certainty, no provision herein shall prohibit the Partnership’s indirect exposure to the use of leverage (in any amounts and for any reason or purpose whatsoever) through its underlying investments, including but not limited to, its direct and indirect investments in the StepStone Cayman Fund and the Underlying Partnerships.
Use of Leverage. The Fund may implement various temporary “defensive” strategies at times when Credit Suisse determines that conditions in the markets make pursuing the Fund’s basic investment strategy inconsistent with the best interests of shareholders. These strategies may include investing less than 80% of its total assets in lower grade income securities by investing in higher quality debt and/or money market instruments. See “Investment Policies.” The Fund invests primarily in bonds, debentures, notes, senior loans, other debt instruments, convertible bonds and preferred stocks. The Fund’s portfolio securities may have fixed or variable rates of interest and may include zero coupon securities, payment-in-kind securities or other deferred payment securities, preferred stock, convertible debt obligations and convertible preferred stock, units consisting of debt or preferred stock with warrants or other equity features, secured floating rate loans and loan participations, government securities, stripped securities, commercial paper and other short-term debt obligations. The issuers of the Fund’s portfolio securities may include domestic and foreign corporations, partnerships, trusts or similar entities, and governmental entities or their political subdivisions, agencies or instrumentalities. The Fund may invest in companies in, or governments of, developing countries. In connection with its investments in corporate debt securities, or restructuring of investments owned by the Fund, the Fund may receive warrants or other non-income producing equity securities. The Fund may retain such securities, including equity shares received upon conversion of convertible securities, until Credit Suisse determines it is appropriate in light of current market conditions to dispose of such securities. The Fund has certain investment restrictions that may not be changed without approval by a majority of the Fund’s outstanding voting securities. These restrictions concern issuance of senior securities, borrowing, lending, concentration, diversification and other matters. See “Investment Restrictions.” As provided in the Investment Company Act of 1940, as amended (the “1940 Act”), and subject to certain exceptions, the Fund may issue debt with the condition that immediately after issuance the value of its total assets, less ordinary course liabilities, exceeds 300% of the amount of the debt outstanding. Thus, as noted above, the Fund may use leverage in the form of borrowings in an amount...
Use of LeverageThe Fund may borrow money and/or issue Preferred Shares, notes or debt securities for investment purposes. These practices are known as leveraging. The Adviser determines whether or not to engage in leverage based on its assessment of conditions in the debt and credit markets. On December 16, 2016, the Fund entered into a $75,000,000 secured, revolving, evergreen credit facility with U.S. Bank National Association (the “USB Facility”). The borrowing rate under the USB Facility is equal to one-month LIBOR plus 0.95%. The average principal balance and interest rate for the fiscal year ended June 30, 2021 was approximately $38,205,479 and 1.13%, respectively. As of June 30, 2021, the principal amount of borrowings under the USB Facility was Dividends and Distributions The Fund has implemented a level distribution policy (the “Level Distribution Policy.”) Under the Level Distribution Policy, the Fund intends to make monthly distributions to common shareholders at a constant and fixed (but not guaranteed) rate (which is annually reset) equal to 12.50% of the average of the Fund’s NAV per share as reported for the final five trading days of the preceding calendar year.
Use of Leverage. The Partnership has the authority to borrow money from time to time for cash management purposes, including, but not limited to, entering into credit facilities from time to time. A credit facility may be secured by the assets of the Partnership, including, without limitation, the unfunded Capital Commitments and the right to call such unfunded Capital Commitments. Upon request by the General Partner, Limited Partners shall be required to cooperate with the General Partner in securing any credit facility and to: (i) confirm their Capital Commitment(s) and unfunded Capital Commitment(s); (ii) provide additional information to the credit provider or lender; and/or (iii) execute such documents, in each case, as may be reasonably required by the General Partner or the credit provider or lender. For greater certainty, no provision herein shall prohibit the Partnership’s indirect exposure to the use of leverage (in any amounts and for any reason or purpose whatsoever) through its underlying investments, including but not limited to, its direct and indirect investments in the Underlying Funds.