Small Business Investment Company Covenants Sample Clauses

Small Business Investment Company Covenants. 7.1. SBIC Covenants. (a) Without the consent of each Investor that is a Small Business Investment Company (“SBIC”) licensed by the United States Small Business Administration (each an “SBIC Investor”), the Company will not issue securities to any SBIC in the future if such issuance would cause such SBIC Investor to be deemed to be a member of an “Investor Group” in “Control” of the Company (as such terms are defined in 13 CFR § 107.865). (b) The Company shall permit representatives of the Small Business Administration and each SBIC Investor access to the Company’s records. Upon the request of an SBIC Investor or any of its affiliates, the Company will furnish to such person all information reasonably requested by it in order for it to comply with its recordkeeping, reporting and other obligations under the SBIA or any SBIC Regulation. (c) The Company will at all times comply with the non-discrimination requirements of 13 C.F.R., Parts 112, 113 and 117. 7.2. Regulatory Compliance Cooperation. (a) In the event that an SBIC Investor determines that it has a Regulatory Problem (as defined below), such SBIC Investor shall have the right to transfer its Preferred Stock and/or shares of Common Stock without regard to any restriction on transfer hereunder, and the Company shall (i) take all such actions as are reasonably requested by such SBIC Investor in order to effectuate and facilitate any transfer by such SBIC Investor of any securities of the Company then held by such SBIC Investor to any Person designated by such SBIC Investor or (ii) use its best efforts to take all actions reasonably necessary to address and cure such Regulatory Problem. (b) For purposes of this Agreement, a “Regulatory Problem” means any set of facts or circumstances wherein it has been asserted by any governmental regulatory agency (or an SBIC Investor believes that there is a substantial risk of such assertion) that such SBIC Investor is not entitled to hold, or exercise any significant right with respect to, the underlying Common Sock of the Company.
Sample 1
AutoNDA by SimpleDocs
Small Business Investment Company Covenants 
Sample 1Sample 2

Related to Small Business Investment Company Covenants

  • Small Business Investment Company Buyer is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

  • Holding Company and Investment Company Acts Neither the Borrower nor any of its Subsidiaries is a "holding company", or a "subsidiary company" of a "holding company", or an "affiliate" of a "holding company", as such terms are defined in the Public Utility Holding Company Act of 1935; nor is it an "investment company", or an "affiliated company" or a "principal underwriter" of an "investment company", as such terms are defined in the Investment Company Act of 1940.

  • Investment Company Act Compliance The Borrower is not, nor is the Borrower directly or indirectly controlled by or acting on behalf of any Person which is, an "investment company" or an "affiliated person" of an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

  • Margin Regulations; Investment Company Act (a) The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.

  • of the Investment Company Act The Company hereby agrees that for the period of time during which Notes are Outstanding, the Company will not violate, whether or not it is subject to, Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act or any successor provisions thereto of the Investment Company Act."

  • Investment Company Diversification Requirements The Borrower (together with its Subsidiaries to the extent required by the Investment Company Act) will at all times comply with the portfolio diversification and similar requirements set forth in the Investment Company Act applicable to business development companies. The Borrower will at all times, subject to applicable grace periods set forth in the Code, comply with the portfolio diversification and similar requirements set forth in the Code applicable to RICs.

  • Compliance with Investment Company Act The business and other activities of the Borrower and its Subsidiaries, including the making of the Loans hereunder, the application of the proceeds and repayment thereof by the Borrower and the consummation of the Transactions contemplated by the Loan Documents do not result in a violation or breach in any material respect of the provisions of the Investment Company Act or any rules, regulations or orders issued by the Securities and Exchange Commission thereunder, in each case that are applicable to the Borrower and its Subsidiaries.

  • Investment Companies No Restricted Entity or Affiliate thereof is an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

Time is Money Join Law Insider Premium to draft better contracts faster.