6.11 Loss of Note or other Loan Documents. Upon notice from the Lender of the loss, theft, or destruction of the Note and upon receipt of an affidavit of lost note and an indemnity satisfactory to the Borrower from, in the Borrowers reasonable judgment, Lender, or in the case of mutilation of the Note, upon surrender of the mutilated Note, the Borrower shall make and deliver a new note of like tenor in lieu of the then to be superseded Note. If any of the other Loan Documents were lost or mutilated, the Borrower agrees to execute and deliver replacement Loan Documents in the same form of such Loan Document(s) that were lost or mutilated as they are then current at such time of replacement.
So long as any Obligation shall remain unpaid or the Lender shall have any Commitment hereunder, the Borrower shall not, without the prior express written consent of the Lender:
7.1 Financial Covenants.
(a) Minimum Excess Net Capital. Permit its Excess Net Capital to be less than Fifty Million Dollars ($50,000,000.00), to be tested as of the end of each calendar month, as reported by Borrower on its monthly as-filed FOCUS Report.
(b) Leverage. Permit its Leverage Ratio to exceed 0.55 to 1.0 at any time, tested as of the end of December 31 and June 30 of each year.
7.2 Liens, Etc. Directly or indirectly create, incur, assume, or permit to exist any material Lien upon or with respect to any of its assets or properties, whether now owned or hereafter acquired (other than the Permitted Encumbrances).
7.3 Debt. Create, incur, assume, or permit to exist any Debt, except for (a) secured Debt not to exceed Thirty Million Dollars ($30,000,000) (excluding hypothecated and re-hypothecated margin loans and any Debt in favor of clearing agencies, clearing firms, settlement banks and similar entities (acting in their capacities as such) involved in the clearance and settlement of transactions in, and custody of, financial assets), (b) Debt owed to Lender, (c) unsecured Debt in the ordinary course of Borrowers business, and (d) Subordinated Debt.
7.4 Equity Payments, Etc. Declare or pay any dividends or distributions, or purchase or otherwise acquire for value any of its Equity Interests, or make any distribution of assets to any of the holders of its Equity Interests as such, except that, so long as no Event of Default exists or would exist after giving effect to any dividend or distributions, Borrower may declare and deliver dividends and make distributions on account of the Equity Interests of the Borrower.
7.5 Fundamental Changes. Not (a) materially change its corporate structure, (b) materially alter the nature or character of its business, as presently conducted as a broker-dealer and futures commission merchant, (c) consolidate with, merge with, or acquire all or substantially all of the Equity Interests of any Person, or (d) liquidate, windup, or dissolve.
7.6 Loans, Investments, Contingent Liabilities. Other than Borrowers ordinary course of business activities including treasury, settlement, margin lending, or stock lending activity, make or permit to remain outstanding any loan or advance to, or guarantee, induce or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stock or dividends of, or own, purchase or acquire any stock, obligations or securities of or any other interest in, or make any capital contribution to, any other Person (hereinafter collectively referred to as Investments), in excess of 50% of Borrowers Excess Net Capital.