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This excerpt taken from the CVS 8-K filed Mar 23, 2007. Federal
Reserve
Regulations; Use of Proceeds
The Borrower is
not engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System, as
amended. No part of the proceeds of the Loans or the Letters of Credit has
been
or will be used, directly or indirectly, and whether immediately, incidentally
or ultimately, for a purpose which violates any law, rule or regulation of
any
Governmental Authority, including, without limitation, the provisions of
Regulations T, U or X of the Board of Governors of the Federal Reserve System,
as amended. Anything in this Agreement to the contrary notwithstanding, neither
the Issuer nor any Lender shall be obligated to extend credit to or on behalf
of
the Borrower in violation of any limitation or prohibition provided by any
applicable law, regulation or statute, including said Regulation U. Following
application of the proceeds of each Loan and the issuance of each Letter of
Credit, not more than 25% (or such greater or lesser percentage as is provided
in the exclusions from the definition of “Indirectly
Secured”
contained in said
Regulation U as in effect at the time of the making of such Loan or issuance
of
such Letter of Credit) of the value of the assets of the Borrower and the
Subsidiaries on a Consolidated basis that are subject to Section 8.2 will be
Margin Stock. In addition, no part of the proceeds of any Loan or Letter of
Credit will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to make a loan to any director or executive officer
of the Borrower or any Subsidiary.
4.10 |
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