Eligible Real Estate Clause Samples

Eligible Real Estate. Eligible Real Estate shall be that real estate of Borrower and improvements thereon that Agent has specifically identified and approved in writing and as to which, following an independent appraisal thereof in accordance with FIRREA, Agent has assigned an Appraised Forced Liquidation Value and to which none of the criteria below applies. Agent shall have the right to establish, modify or eliminate Reserves against Eligible Real Estate from time to time in its reasonable credit judgment. In addition, Agent reserves the right, at any time and from time to time after the Closing Date, to adjust any of the criteria set forth below, to establish new criteria and to adjust advance rates with respect to Eligible Real Estate in its reasonable credit judgment, subject to the approval of the Supermajority Revolving Lenders in the case of adjustments, new criteria or changes in advance rates that have the effect of making more credit available. Eligible Real Estate shall not include any real estate: (a) that is not owned by such Borrower free and clear of all Liens and rights of any other Person, except the Liens in favor of Agent, on behalf of itself and Lenders and Permitted Encumbrances of the type described in clauses (a), (d), (e), (g), (h), (j) or (l) of the definition of such term that are subordinate to the Lien in favor of Agent, on behalf of itself and Lenders; (b) as to which Agent has not received a loan policy of title insurance in favor of Agent and in form and amount, and issued by a title insurance company, satisfactory to Agent, in its sole discretion (it being understood that the title insurance policies delivered as to properties in Minnesota on or about the date hereof are not satisfactory to Agent), together with such endorsements thereto as Agent shall require, in its sole discretion (provided such endorsements are available in the jurisdiction where such Real Estate is located); (c) as to which Agent has not received an environmental report satisfactory to Agent, in its sole discretion; (d) that is not subject to a first priority Lien in favor of Agent on behalf of itself and Lenders subject only to Permitted Encumbrances of the type described in clauses (a), (d), (e), (g), (h), (j) or (l) of the definition of such term that are subordinate to the Lien in favor of Agent, on behalf of itself and Lenders; (e) that breaches any of the representations or warranties pertaining to Real Estate set forth in the Loan Documents; or (f) that is not covere...

Eligible Real Estate. With respect to Developed Lots, Fall Foundation Lots, Lots under Development, Model Homes, Real Estate Held for Development, Home Work-In-Process, Speculative Homes, or any other form or type of real estate of the Company or any Restricted Subsidiary which may be considered for the purposes of the Borrowing Base, the term "Eligible" used in connection with any such type of real estate shall mean that portion of real property (a) owned in fee simple title by the Company or a Restricted Subsidiary, and (b) which is not subject to any mortgage, lien, or encumbrance, except for Unleveraged Seller Financing, and except for reservations, exceptions, encroachments, easements, rights-of-way, restrictions, leases or other similar title exceptions which do not materially detract from the value of such real estate or interfere with its use or resale.

Eligible Real Estate. Real Estate owned by a Borrower and located in the United States that Agent, in its Permitted Discretion, determined is eligible for inclusion in the Tranche A Borrowing Base. Without limiting the foregoing, no Real Estate shall be Eligible Real Estate unless it is Real Estate (a) in respect of which an Acceptable Appraisal has been delivered to Agent and to the Lenders, in form and substance acceptable to the Lenders in their Permitted Discretion not less than 15 days prior to the effective date of the Mortgage; (c) in respect of which Agent is satisfied in its Permitted Discretion that all actions necessary or desirable have been taken in order to create a perfected first priority Lien (subject to Permitted Liens (other than (j) and (n) in the definition of Permitted Liens) on such Real Estate to secure the Obligations, including the filing and recording of Mortgages; (d) in respect of which an environmental assessment report has been completed and delivered to Agent in form and substance satisfactory to Agent and the Lenders in their Permitted Discretion and which does not indicate any material pending, threatened or existing Environmental Liability or noncompliance with any Environmental Law; (e) for which Borrowers have good and indefeasible title which is adequately protected by fully-paid valid title insurance with endorsements and in amounts acceptable to Agent in its Permitted Discretion, insuring that Agent, for the benefit of the Lenders and the other Secured Parties, shall have a perfected first priority Lien (subject to Permitted Liens (other than Liens under clauses (j) and (n) in the definition of Permitted Liens) as to which Availability Reserves have been established) on such Real Estate, evidence of which shall have been provided in form and substance satisfactory to Agent in its Permitted Discretion; (f) for which Agent has received at least 45 days prior to the effective date of the Mortgage, all information requested by any Lender for its due diligence pursuant to Flood Laws; (g) for which each Lender has received completed “Life-of-Loan” Federal Emergency Management Agency (“FEMA”) Standard Flood Hazard Determination with respect to each parcel of Real Estate subject to the applicable FEMA rules and regulations (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower Agent), (h) if such Real Estate is located in an area determined by FEMA to have special flood hazards, ...

Eligible Real Estate. Agent shall have the right to establish, modify, or eliminate Reserves against Eligible Real Estate from time to time in its reasonable credit judgment. In addition, Agent reserves the right, at any time and from time to time after the Closing Date, to adjust any of the applicable criteria, to establish new criteria and to adjust advance rates with respect to Eligible Real Estate in its reasonable credit judgment, subject to the approval of Required Lenders in the case of adjustments, new criteria or changes in advance rates which have the effect of making more credit available.

Eligible Real Estate. With respect to Developed Lots, Fall Foundation Lots, Lots Under Development, Model Homes, Real Estate Held for Development, Home Work-In-Process, Speculative Homes, or any other form or type of real estate of the Company or any Restricted Subsidiary which may be considered for the purposes of the Borrowing Base, the term "Eligible" used in connection with any such type of real estate means that portion of real property (a) owned in fee simple title by the Company or a Restricted Subsidiary, (b) which is not subject to any mortgage, lien, or encumbrance, except for reservations, exceptions, encroachments, easements, rights-of-way, restrictions, leases or other similar title exceptions which do not materially detract from the value of such real estate or interfere with its use or resale and (c) which has a zoning classification appropriate for a subdivision development of the type developed by the Company or a Restricted Subsidiary.

Eligible Real Estate. The Loan Parties, the Agents, and the Lenders hereby acknowledge and agree that, notwithstanding any provision of the Credit Agreement to the contrary, until such time as the Agent has obtained an updated appraisal with respect to the Eligible Real Estate, no Eligible Real Estate shall be included in the Borrowing Base.

Eligible Real Estate. The term "Eligible Real Estate" shall mean that portion of the Borrower's real property consisting of office and warehouse facilities, upon which the Bank shall have a first mortgage or deed of trust that the Bank determines in good faith from time to time, based upon, among other items, (a) market conditions, (b) the Bank's analysis of (i) current MAI appraisals satisfactory to the Bank reflecting sufficient value, (ii) current surveys complying with the Bank's survey standards reflecting the absence of encroachments, access limitations or other survey defects, and reflecting that such real property does not lie within a flood hazard area, (iii) 1970 Form ALTA title insurance complying with the Bank's title standards and reflecting the absence of any encumbrances, easements not acceptable to the Bank, or title defects, (iv) current environmental surveys reflecting the absence of environmental concerns, (v) surveys or other reports demonstrating that such property does not contain any areas that may constitute wetlands (as defined in 40 C.F.R. Section 122.2 and 33 C.F.R. Section 328.3) and that there has been no unpermitted filling of wetlands at such mortgaged property, (vi) such real property is zoned or will be rezoned for the development planned by the Borrower, and (vii) reports demonstrating appropriate assurances of availability of necessary utilities in adequate capacities, (viii) the Bank is named loss payee, mortgagee and additional insured and (c) the Bank's evaluation of other real estate requirements, is eligible for use in calculating the Borrowing Base. In the absence of updated evidence of the items set forth in clauses (b)(i) through (viii) above, the Borrower's Eligible Real Estate shall be valued at $2,500,000.00.

Eligible Real Estate. All of the real estate owned by the Borrower and reflected in the most recent Borrowing Base Certificate delivered by Borrower to Bank shall be “Eligible Real Estate” for purposes of this Agreement. Eligible Real Estate shall not include any Real Property of Borrower that: (a) is not owned or leased by Borrower free and clear of all liens and rights of any other person except the liens in favor of Bank and Permitted Liens; (b) is not encumbered by a mortgage or deed of trust, in each case in favor of Lender; (c) if the real property is leased by Borrower, the Lender has not approved the term of the lease and its form and the landlord has not given its written consent to the Lender’s leasehold mortgage; (d) Lender has not received a title insurance policy or title insurance commitment with all conditions of issuance satisfied, in form satisfactory to Lender. Mortgaged parcels with title insurance that excludes coverage for access or do not have an endorsement confirming that the mortgaged parcel is the same as an identified tax parcel shall not be Eligible Real Estate, unless Lender shall give a written waiver. (e) does not have a current appraisal satisfactory to Lender. (f) has delinquent real property taxes or assessments; or (g) is subject to a lis pendens, mechanic’s lien, a boundary dispute or is other similar controversy.

Eligible Real Estate. Based on the most recent Borrowing Base -------------------- Certificate delivered by Borrower to Agent and on other information available to Agent, Agent shall in its reasonable judgment determine which Real Estate of Borrower shall be "Eligible Real Estate" for purposes of this Agreement. In -------------------- determining whether any particular Real Estate constitutes Eligible Real Estate, Agent shall not include any such Real Estate to which any of the exclusionary criteria set forth below applies. Agent reserves the right, at any time and from time to time after the Effective Date, to adjust any such criteria, to establish new criteria and to adjust advance rates with respect to Eligible Real Estate in its reasonable judgment, subject to the approval of each Lender in the case of an increase in the percentage advance rates and (y) Supermajority Revolving Lenders in the case of any adjustments or new criteria which have the effect of making more credit available. Eligible Real Estate shall not include any Real Estate of the Borrower that: (a) is not identified on Schedule 1.18; ------------- (c) is either not encumbered by a Deed of Trust or is encumbered by a Deed of Trust where Borrower shall have failed or neglected to perform, keep or observe any provision of such Deed of Trust, as a result of which an Event of Default shall have occurred and be continuing; (d) ceases to be covered by insurance required by the Loan Documents; or (e) is encumbered by any Lien other than a Lien explicitly allowed under Section 6.7. -----------