Common use of Using Loan Proceeds Clause in Contracts

Using Loan Proceeds. Borrower shall use the Loan proceeds only for investments in commercial real estate and for other business and investment purposes (which shall include distributions to its members when such distributions are permitted under the terms and conditions of this Agreement), and in no event shall Borrower use the proceeds of the Loan for family or household purposes. Borrower agrees not to permit, at any time, the outstanding principal balance of the Loan to exceed the Committed Amount (as it may be reduced hereunder), and if Agent determines at any time that the outstanding principal balance of the Loan exceeds the Committed Amount, Borrower shall immediately pay to Agent upon demand by Agent, an amount sufficient to reduce the outstanding principal balance of the Loan to an amount equal to or less than the then existing Committed Amount. Borrower's failure to comply with this Section shall constitute an immediate Event of Default under the Loan Documents.