Guidance Line. The agreement of the Lender to operate the construction facility as a Borrowing Base shall not alter or amend the character of the line of credit as a guidance line. The parties acknowledge that Lender may in its sole discretion agree to accept for financing any particular Lot and/or Home by approving a New Start Request for such Lot and Home. Notwithstanding Borrower’s full compliance with all terms, conditions and covenants contained in the Loan Documents, Lender may at any time and from time to time decline to approve specific New Start Requests and thereby decline to add specific Lots and/or Homes to the Borrowing Base. In the event Lender declines to approve the financing of any specific Lot and/or Home, the rights and remedies of Lender pursuant to the terms of the Loan Documents shall not be diminished or otherwise affected.
Guidance Line. The following is deemed inserted in the Initial Loan Agreement as Section 3.A:
Guidance Line. 31 5.4 Bank's Discretion . . . . . . . . . . . . . . . . . . . . . 31 5.5
Guidance Line. Notwithstanding anything contained in this Agreement, the Note or any other Security Instrument to the contrary, the Bank, in its sole discretion, shall have the right, prior to the initial advance under the Revolving Line of Credit with respect to any Lot or Improvements, to disapprove of the inclusion by the Borrower of such Lot or Improvements in the Borrowing Base. Upon such disapproval, such Lot or Improvement shall be ineligible for inclusion in the Borrowing Base and shall not be used in the calculation of the Borrowing Base Value. In deciding whether to disapprove of the inclusion of any Lot or Improvements in the Borrowing Base, the Bank may consider, among other matters, (i) the condition, financial or otherwise, existing or potential, of the Borrower, (ii) the existing or potential condition of the single family house construction business generally, (iii) the type of floor plan or specifications to which the Improvements are to be built and (iv) the residential subdivision in which the Lot is to be located. The rights of the Bank under this Section 5.3 are in addition to any other rights the Bank may have under this Agreement or any other Security Instrument to not make advances under the Revolving Line of Credit, including, without limitation, any right that may exist as a result of the Borrower's failure to comply with the provisions of Section 5.2 hereof.
Guidance Line. Notwithstanding anything herein to the contrary, Lender may, in its sole and absolute discretion, for any reason or for no reason, exclude any Lot, House or A&D Project from the Collateral or the Borrowing Base.
