Common use of Approvals and Permits; Assets and Property Clause in Contracts

Approvals and Permits; Assets and Property. Borrower has obtained and there are in full force and effect all Approvals and Permits presently necessary for the conduct of the business of Borrower, and Borrower owns, leases, licenses or otherwise has rights to all assets necessary for conduct of the business and operations of Borrower, except as otherwise permitted pursuant to this Agreement, except for any failure to obtain and maintain in full force and effect any Approval or Permit or any failure to own, lease or license such assets that would not, individually or in the aggregate, (i) be materially adverse to the business, properties, assets, operations or condition (financial or otherwise) of Borrower or (ii) materially and adversely affect any Units, Lots or other property that is at any time included as Eligible Collateral. The assets of Borrower are not subject to any Liens and Encumbrances, other than (A) the Liens and Encumbrances created pursuant to this Agreement; (B) the Permitted Exceptions with respect to property encumbered by a Deed of Trust; and (C) with respect to other assets of Borrower that are not encumbered by a Deed of Trust, Liens and Encumbrances that have been taken into account in the preparation of financial statements and reports of Borrower delivered to the Lender. To the extent Borrower makes or intends to make sales of Units prior to the issuance of any applicable public reports, Borrower has, and will at all times maintain, all special exemption orders and other approvals and permits that are necessary or appropriate.

Approvals and Permits; Assets and Property. Borrower has obtained and there are in full force and effect all Approvals and Permits presently necessary for the conduct of the business of Borrower, and Borrower owns, leases, or licenses or otherwise has rights to all assets necessary for conduct of the business and operations of Borrower, except as otherwise permitted pursuant to this Agreement, except for any failure to obtain and maintain in full force and effect any Approval or Permit or any failure to own, lease or license such assets that would not, individually or in the aggregate, (i) be materially adverse to the business, properties, assets, operations or condition (financial or otherwise) of Borrower Borrower, taken as a whole, or (ii) materially and adversely affect any Units, Lots or other property that is at any time included as Eligible Collateral. The assets of Borrower are not subject to any Liens and Encumbrances, other than (A) the Liens and Encumbrances created pursuant to this AgreementAgreement and the other Loan Documents; (B) the Permitted Exceptions with respect to property encumbered by a Deed of Trust; and (C) with respect to other assets of Borrower that are not encumbered by a Deed of Trust, Liens and Encumbrances that have been taken into account in the preparation of financial statements and reports of Borrower delivered to the Lender. To the extent Borrower makes or intends to make sales of Units prior to the issuance of any applicable public reports, Borrower has, and will at all times maintain, all special exemption orders and other approvals and permits that are necessary or appropriateBorrower.

Approvals and Permits; Assets and Property. Borrower has obtained and there are in full force and effect all Approvals and Permits presently necessary for the conduct of the business of Borrower, and Borrower owns, leases, or licenses or otherwise has rights to all assets necessary for conduct of the business and operations of BorrowerBorrower (including, without limitation, any Option/Purchase Agreement), except as otherwise permitted pursuant to this Agreement, except for any failure to obtain and maintain in full force and effect any Approval or Permit or any failure to own, lease or license such assets that would not, individually or in the aggregate, (i) be materially adverse to the business, properties, assets, operations or condition (financial or otherwise) of Borrower or (ii) materially and adversely affect any A&D Projects, Units, Lots or other property that is at any time included as Eligible Collateral. The assets of Borrower are not subject to any Liens and Encumbrances, other than (A) the Liens and Encumbrances created pursuant to this Agreement; (B) the Permitted Exceptions with respect to property encumbered by a Deed of Trust; and (C) with respect to other assets of Borrower that are not encumbered by a Deed of Trust, Liens and Encumbrances that have been taken into 69 account in the preparation of financial statements and reports of Borrower delivered to the LenderAgent. To the extent Borrower makes or intends to make sales of Units prior to the issuance of any applicable public reports, Borrower has, and will at all times maintain, all special exemption orders and other approvals and permits that are necessary or appropriate.

Approvals and Permits; Assets and Property. Borrower has obtained and there are in full force and effect all Approvals and Permits presently necessary for the conduct of the business of Borrowerits business, and Borrower owns, leases, or licenses or otherwise has rights to all assets necessary for conduct of the business their respective businesses and operations of Borroweroperations, except as otherwise permitted pursuant to this Agreement, except for any failure to obtain and maintain in full force and effect any Approval or Permit or any failure to own, lease or license such assets that would not, individually or in the aggregate, (i) be materially adverse to the businesstheir respective businesses, properties, assets, operations or condition (financial or otherwise) of Borrower ), or (ii) materially and adversely affect any Units, Approved Subdivision (or the Lots contained therein) or other property that is at any time included as Eligible Collateral. The assets of Borrower are Collateral is not subject to any Liens and Encumbrances, other than (A) the Liens and Encumbrances created pursuant to this AgreementAgreement and the other Loan Documents; and (B) the Permitted Exceptions with respect to property encumbered by a Deed of Trust; and (C) with respect to other Exceptions. The assets of Borrower that (other than Collateral) are not encumbered by a Deed of Trust, subject to any Liens and Encumbrances that have been taken into account in other than Liens and Encumbrances disclosed on the preparation of financial statements and reports of Borrower delivered (to the Lender. To the extent Borrower makes or intends required to make sales of Units prior to the issuance of any applicable public reports, Borrower has, and will at all times maintain, all special exemption orders and other approvals and permits that are necessary or appropriatebe disclosed on such financial statements in accordance with GAAP).

Approvals and Permits; Assets and Property. Borrower has obtained all Approvals and Permits necessary to permit the construction of the A&D Lot Improvements and the construction and sale of Units in the Subdivision, provided that Borrower may not have obtained all of the Approvals and Permits necessary for the construction of A&D Lot Improvements or the construction or sale of Units to the extent such Approvals and Permits are not yet necessary and Borrower has not requested Advances to pay the cost of improvements for which Approvals and Permits have not been obtained. In addition, Borrower has obtained and there are in full force and effect all Approvals and Permits presently necessary for the conduct of the business of Borrower, and Borrower owns, leases, or licenses or otherwise has rights to all assets necessary for conduct of the business and operations of Borrower, except as otherwise permitted pursuant to this Agreement, except for any failure to obtain and maintain in full force and effect any Approval or Permit or any failure to own, lease or license such assets that would not, individually or in the aggregate, (i) be materially adverse to the business, properties, assets, operations or condition (financial or otherwise) of Borrower Borrower, or (ii) materially and adversely affect any Units, Lots or other property that is at any time included as Eligible Collateral. The assets of Borrower are not subject to any Liens and Encumbrances, other than (A) the Liens and Encumbrances created pursuant to this AgreementAgreement and the other Loan Documents; (B) the Permitted Exceptions with respect to property encumbered by a Deed of Trust; (C) other Permitted Exceptions; and (CD) with respect to other assets of Borrower that are not encumbered by a Deed of Trust, Liens and Encumbrances that have been taken into account in the preparation of financial statements and reports of Borrower delivered to the Lender. To the extent Borrower makes or intends to make sales of Units prior to the issuance of any applicable public reports, Borrower has, and will at all times maintain, all special exemption orders and other approvals and permits that are necessary or appropriateBank.