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Most lawyers agree that signing loans, relocation loans and loans to exercise stock options or buy stock are usually no-nos.
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In students' loan contracts with the Education Department, borrowers are instructed to contact the department's contracted loan servicers to exercise this right.
Harken publicly disclosed the $180,000 in loans to Mr. Bush, to exercise stock options, in its financial statements at the time, but did not publicly disclose the change in the terms of Mr. Bush's 1986 loan.
The report, to be formally released Tuesday, is vital to the $20 billion project because it allows a series of multibillion-dollar loans to be exercised.
About 15percentt of large companies give their executives loans to buy stock or to exercise options, up from about 10percentt in 1996, according to Mercer.
If it defaults on its loans, lenders would be able to exercise their rights under the agreements, including bringing financing maturity dates forward.
Loan recipients sign a commitment letter promising to "exercise my best efforts" to repay the debt "within a reasonable time after I am financially able to do so".
C1 No More Loans to Executives Most companies have stopped allowing executives to exercise stock options without putting up their own money.
Mexico striker Javier Hernandez will return to Manchester United after Real Madrid decided not to exercise an option to buy him after a loan spell.
A separate report by Lehman Brothers also said that the owners "appear ready to exercise their 'default option' " and walk away from the loan and the complex.
Moreover, if the loan went into default, Inbursa could become a direct lender, allowing it to exercise its rights directly against Cablevision.
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