BMH Loan. A loan in the original principal amount of up to Four Million One Hundred Sixty-Four Thousand and 00/100 Dollars ($4,164,000.00) (“BMH Loan”) at the Closing, the net proceeds of which may be disbursed to BMH in one or more Disbursements on the date of Closing or upon the date that all terms and conditions to be satisfied hereunder by BMH, including obtaining the Lender’s approval of the final development budget for the Hamlets Land as further set forth in Section 2.08, are fully satisfied in the Lender’s opinion, in accordance with and subject to the conditions, requirements and limitations set forth in this Agreement. Upon repayment of any amount of principal or interest on the BMH Loan by BMH, BMH may reborrow hereunder, subject to the limitations on the maximum allowable amount outstanding provided in Section 2.05 and subject to any other conditions, requirements and limitations set forth in this Agreement.
BMH Loan. The net proceeds of the BMH Loan shall be used for purchase and development of lots included in Phases 1 and 2 of the Hamlets Land. Upon Lender’s approval of budgeted costs, release times and release costs for Phases 3, 4 and 5 of the Hamlets Land, the net proceeds of the BMH Loan may be used for development of such Phases. Such approval shall be at Lender’s sole and exclusive option, and such approval or denial shall be communicated to BMH prior to the beginning of development. In connection with the development of Phases 3, 4 and 5, Lender may make one or more Disbursements under the BMH Loan to reimburse BMH for payments made by BMH to third parties in furtherance of such development, or alternatively, Lender may make Disbursements directly to such third parties. Such reimbursable items shall be limited only to those listed in the final development budget as approved by Lender and reimbursement shall be provided only up to the amounts listed for such items on the final development budget as approved by Lender, unless Lender agrees otherwise. Upon approval of the final development budget, any changes must be approved by Lender, but Lender shall have no obligation to approve any such changes. In connection with Lender’s decision to approve the final development budget, BMH agrees to provide all necessary documentation required by Lender to fully understand the proposed budget. BMH acknowledges and agrees that it will require all vendors whose total costs exceed ten percent (10%) of the final development budget as approved by Lender for a respective Phase to provide terms of at least ninety (90) days on all invoices. No net proceeds of the BMH Loan shall be used to pay taxes, maintenance fees, interest (except to the extent interest may be paid out of the balance of the Interest Escrow) or similar expenses for development. No net proceeds of the BMH Loan shall be used to pay management fees for the development of Phases 1 and 2. Management fees for development of Phases 3, 4 and 5 shall not be calculated until all costs are paid for development and then will be calculated and paid as follows: total budgeted costs for development, including management fee and contingency (excluding interest), minus all costs spent except for the management fee. The management fee shall not exceed the management fee provided for in the final development budget as approved by Lender.
