Common use of Home Construction Information Clause in Contracts

Home Construction Information. Borrower shall not be entitled to include any Finished Lots in a Borrowing Base Certificate as Presold and/or Spec Homes unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Homes may be entered into the Borrowing Base upon confirmation of trenching by Lender; (b) At Borrower’s sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiser, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the Project shall be updated or evaluated once annually at Lender’s reasonable discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals for said Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change has occurred with respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said Project; (c) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said Homes, including without limitation the requisite consumer disclosure reports and approvals required in connection with the sale of said Homes, and (iii) architectural control committee homeowners’ association and other approvals if required under the CC&Rs; (d) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (e) For all Presold Homes, Lender shall have received evidence reasonably satisfactory to Lender of satisfaction of the Presold Home Requirements for said Homes. (f) For all Spec Homes, Borrower shall not be entitled to include in the Borrowing Base at any one time more Spec Homes than are permitted under the Spec Home Limitation.

Home Construction Information. Borrower shall not be entitled to include any Finished Lots portion of the Land in a Borrowing Base Certificate as Presold Presold, Spec and/or Spec Model Homes unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Borrower shall have submitted to Lender, and Lender shall have approved, Plans and Specifications for each type of Home for each Project, which Plans and Specifications shall be (i) prepared by Architect and/or Engineer acceptable to Lender, and (ii) otherwise satisfactory to Lender; (b) Homes may be entered into the Borrowing Base upon confirmation of trenching by Lender; (bc) At Borrower’s sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiseran appraiser acceptable to Lender, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the a Project shall be updated or evaluated once annually at Lender’s reasonable discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals for said Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change material adverse change has occurred with ‘respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said Project; (cd) Borrower shall have submitted to Lender all other information requested by Lender to formulate a Home Construction Budget for each type of Home (which may include without limitation construction contracts and other verifications of costs), and Lender shall have formulated such Home Construction Budget; (e) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said Homes, including without limitation the requisite consumer disclosure reports and approvals required in connection with the sale of said Homes, and (iii) architectural control committee homeowners’ association and other approvals if required under the CC&Rs; (df) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (eg) For all Presold Homes, Lender shall have received evidence in the form of Borrower’s most recent project reports (in such form as reasonably satisfactory to Lender of satisfaction requested by Lender) of the Presold Home Requirements following: (i) A duly executed Purchase Contract, escrow instructions or deposit receipt without contingencies (other than the sale of an existing residency contingency); (ii) A prequalification letter or mortgage commitment from an institutional mortgage lender or such other information or verification as Lender may require concerning the ability of the prospective buyer to obtain financing or otherwise acquire the Home; and (iii) A xxxx xxxxxxx money deposit or down payment of at least Five Thousand Dollars ($5,000.00) (which deposit requirement shall be increased to twenty percent (20%) of the purchase price for said HomesHome if the prospective buyer failed to satisfy the requirement in subsection (ii) above, unless said buyer demonstrates availability of funds for an all-cash purchase offer, in which case the deposit shall not be required to be increased to twenty percent (20%) of the purchase price). (fh) For all Spec Homes, Borrower shall not be entitled to include in the Borrowing Base at any one time more Spec Homes than are permitted under in violation of the Spec Home Concentration Limitation. (i) For all Presold Homes, Borrower shall not be entitled to include in the Borrowing Base at any one time in violation of the Home Concentration Limitation. (j) For all Model Homes, the Lots to be used for the construction of any Model Homes, the Model Homes and any parking areas used for model complex parking shall remain as Collateral for the Loan and shall not be eligible for release from the applicable Deed of Trust until all production Homes of each Model Home’s respective plan type have been sold for each applicable Project; provided, however, that Lender in its sole discretion may permit Borrower to sell a Model Home, as long as (1) said Model Home is leased back to Borrower under terms and conditions acceptable to Lender, and (2) said lease of the Model Home is assigned or otherwise encumbered as collateral for the applicable Loan, and (3) said lease and said assignment or encumbrance shall be in full force and effect until all production Units of said Model Home’s respective plan type have been sold for the applicable Project.

Home Construction Information. Borrower shall not be entitled to include any Finished Lots portion of the Land in a Borrowing Base Certificate as Presold Presold, Spec and/or Spec Model Homes unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Borrower shall have submitted to Lender, and Lender shall have approved, Plans and Specifications for each type of Home for each Project, which Plans and Specifications shall be (i) prepared by Architect and/or Engineer acceptable to Lender, and (ii) otherwise satisfactory to Lender; (b) Homes may be entered into the Borrowing Base upon confirmation of trenching by Lender; (bc) At Borrower’s sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiseran appraiser acceptable to Lender, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the a Project shall be updated or evaluated once annually at Lender’s reasonable discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals for said Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change material adverse change has occurred with respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said Project; (cd) Borrower shall have submitted to Lender all other information requested by Lender to formulate a Home Construction Budget for each type of Home (which may include without limitation construction contracts and other verifications of costs), and Lender shall have formulated such Home Construction Budget; (e) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said Homes, including without limitation the requisite consumer disclosure reports and approvals required in connection with the sale of said Homes, and (iii) architectural control committee homeowners’ association and other approvals if required under the CC&Rs; (df) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (eg) For all Presold Homes, Lender shall have received evidence in the form of Borrower’s most recent project reports from XX Xxxxxxx (or such other form as reasonably satisfactory to Lender of satisfaction requested by Lender) of the Presold Home Requirements following: (i) A duly executed Purchase Contract, escrow instructions or deposit receipt without contingencies (other than the sale of an existing residency contingency); (ii) A prequalification letter or mortgage commitment from an institutional mortgage lender or such other information or verification as Lender may require concerning the ability of the prospective buyer to obtain financing or otherwise acquire the Home; and (iii) A xxxx xxxxxxx money deposit or down payment of at least Five Thousand Dollars ($5,000.00) (which deposit requirement shall be increased to twenty percent (20%) of the purchase price for said HomesHome if the prospective buyer failed to satisfy the requirement in subsection (ii) above). (fh) For all Spec Homes (including any Model Homes), Borrower shall not be entitled to include in the Borrowing Base at any one time more Spec Homes than are permitted under in violation of the Spec Home Concentration Limitation., which shall mean: (i) For all Projects financed hereunder, the aggregate Loan Allocations for all Spec Homes for all Projects (whether Advances have been made and/or have been committed but have not yet advanced) shall not exceed the sum of Twelve Million Dollars ($12,000,000.00); and/or

Home Construction Information. Borrower shall not be entitled to include any Finished Lots portion of the Land in a Borrowing Base Certificate as Presold Presold, Spec and/or Spec Model Homes unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Borrower shall have submitted to Lender, and Lender shall have approved, Plans and Specifications for each type of Home for each Project, which Plans and Specifications shall be (i) prepared by Architect and/or Engineer acceptable to Lender, and (ii) otherwise satisfactory to Lender; (b) Homes may be entered into the Borrowing Base upon confirmation of trenching by Lender; (bc) At Borrower’s 's sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiseran appraiser acceptable to Lender, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the a Project shall be updated or evaluated once annually at Lender’s reasonable 's discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals for said Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s 's request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change material adverse change has occurred with respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said Project; (cd) Borrower shall have submitted to Lender all other information requested by Lender to formulate a Home Construction Budget for each type of Home (which may include without limitation construction contracts and other verifications of costs), and Lender shall have formulated such Home Construction Budget; (e) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said Homes, including without limitation the requisite consumer disclosure reports and approvals required in connection with the sale of said Homes, and (iii) architectural control committee homeowners’ ' association and other approvals if required under the CC&Rs; (df) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (eg) For all Presold Homes, Lender shall have received evidence in the form of Borrower's most recent project reports from JD Xxxxxxx (xx such other form as reasonably satisfactory to Lender of satisfaction requested by Lender) of the Presold Home Requirements following: (i) A duly executed Purchase Contract, escrow instructions or deposit receipt without contingencies (other than the sale of an existing residency contingency); (ii) A prequalification letter or mortgage commitment from an institutional mortgage lender or such other information or verification as Lender may require concerning the ability of the prospective buyer to obtain financing or otherwise acquire the Home; and (iii) A cash xxxxxxx xxxey deposit or down payment of at least Five Thousand Dollars ($5,000.00) (which deposit requirement shall be increased to twenty percent (20%) of the purchase price for said HomesHome if the prospective buyer failed to satisfy the requirement in subsection (ii) above). (fh) For all Spec Homes (including any Model Homes), Borrower shall not be entitled to include in the Borrowing Base at any one time in violation of the Spec Home Concentration Limitation, which shall mean: (i) For all Projects financed hereunder, the aggregate Loan Allocations for all Spec Homes for all Projects (whether Advances have been made and/or have been committed but have not yet advanced) shall not exceed the sum of Twelve Million Dollars ($12,000,000.00); and/or (ii) For each and every Project financed hereunder, for more Spec Homes than are permitted the lesser of (A) four (4) months' appraised absorption for the Project, or (B) four (4) months' actual absorption for the subject Project, as determined by Lender from time to time based upon the actual prior six-month Home sales average for said Project. (i) For all Model Homes, the Lots to be used for the construction of any Model Homes, the Model Homes and any parking areas used for model complex parking shall remain as Collateral for the Loan and shall not be eligible for release from the applicable Deed of Trust until all production Homes of each Model Home's respective plan type have been sold for each applicable Project; provided, however, that Lender in its sole discretion may permit Borrower to sell a Model Home, as long as (1) said Model Home is leased back to Borrower under terms and conditions acceptable to Lender, and (2) said lease of the Spec Model Home Limitationis assigned or otherwise encumbered as collateral for the applicable Loan, and (3) said lease and said assignment or encumbrance shall be in full force and effect until all production 50 57 Units of said Model Home's respective plan type have been sold for the applicable Project.

Home Construction Information. Borrower shall not be entitled to include any Finished Lots in a Borrowing Base Certificate as Presold and/or Spec Homes unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Homes may be entered into the Borrowing Base upon confirmation of trenching by Lender; (b) At Borrower’s sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiser, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the Project shall be updated or evaluated once annually at Lender’s reasonable discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals for said Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change has occurred with respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said Project; (c) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said Homes, including without limitation the requisite consumer disclosure reports and approvals required in connection with the sale of said Homes, and (iii) architectural control committee homeowners’ association and other approvals if required under the CC&Rs; (d) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (e) For all Presold Homes, Lender shall have received evidence reasonably satisfactory to Lender of satisfaction of the Presold Home Requirements for said Homes. (f) For all Spec Homes, Borrower shall not be entitled to include in the Borrowing Base at any one time more Spec Homes than are permitted under the Spec Home Limitation.

Home Construction Information. Borrower shall not be entitled to include any Finished Lots portion of the Land in a Borrowing Base Certificate as Presold Presold, Spec and/or Model Homes (or as High End Presold, High End Spec Homes and/or High End Model Homes) unless and until each of the following conditions precedent have been satisfied (or waived or modified by Lender in its reasonable discretion): (a) Homes Borrower shall have submitted to Lender, and Lender shall have approved, Plans and Specifications for each type of Home for each Project, which Plans and Specifications shall be (i) prepared by Architect and/or Engineer acceptable to Lender, and (ii) otherwise satisfactory to Lender; (b) Borrower shall have certified to Lender that such portion of the Land may be entered into the Borrowing Base upon confirmation of trenching by Lenderas a Home; (bc) At Borrower’s sole cost and expense, Lender shall have obtained Base Appraisals with respect to each type of Home, which Base Appraisals shall be (i) prepared by Qualified Appraiseran appraiser acceptable to Lender, and (ii) otherwise reasonably satisfactory to Lender. Each Base Appraisal for each Home in the a Project shall be updated or evaluated once annually at Lender’s reasonable discretion (or more frequently if required by regulatory guidelines), at the sole cost and expense of Borrower, and all FNMA appraisals or other appraisals Appraisals for said the Homes accepted by Lender that do not have a specific expiration date shall be updated once annually at Lender’s request; provided, however, that Lender may reasonably require that any such appraisal be updated more frequently than annually if (i) Lender reasonably believes that a Material Adverse Change material adverse change has occurred with respect to the Project or any portion thereof, or (ii) Borrower requests in writing that Lender order an Appraisal appraisal of the Project, or (iii) Lender is required to reappraise the Project in connection with regulatory requirements. Based on such revised appraisals and/or evaluations and any other information provided to Lender, Lender shall be entitled to revise the Home Construction Budget and Maximum Allowed Advances applicable to any Home in said such Project; (cd) Borrower shall have submitted to Lender all other information requested by Lender to formulate a Home Construction Budget for each type of Home (which may include without limitation construction contracts and other verifications of costs), and Lender shall have formulated such Home Construction Budget; (e) If requested by Lender, Borrower shall have submitted or made available to Lender evidence of (i) building permits for the construction of the Homes, (ii) all necessary permits, licenses and approvals for the construction of said the Homes, including without limitation the requisite consumer disclosure reports reports, public offering statements, exemptions and approvals required in connection with the sale of said the Homes, and (iii) architectural control committee homeowners’ association and other approvals if required under the any applicable CC&Rs; (df) Prior to entering into any Purchase Contracts for the sale of any Homes, Borrower shall have delivered to Lender the requisite consumer disclosure reports reports, public offering statements, exemptions and approvals prior to the sale of any Homes, in form and substance satisfactory to Lender; (eg) For all Presold Homes and all High End Presold Homes, Lender shall have received evidence in the form of Borrower’s most recent project reports (or such other form as reasonably satisfactory to Lender of satisfaction requested by Lender) of the Presold Home Requirements following: (i) A duly executed Purchase Contract, escrow instructions or deposit receipt without contingencies (other than the sale of an existing residency contingency), which shall be made available for said HomesLender’s review; (ii) A prequalification letter or mortgage commitment from an institutional mortgage lender or such other information or verification as Lender may require concerning the ability of the prospective buyer to obtain financing or otherwise acquire the Home, which shall be made available for Lender’s review; and (iii) A xxxx xxxxxxx money deposit or down payment of at least Five Thousand Dollars ($5,000.00), evidence of which shall be made available for Lender’s review. (fh) For all Spec Homes (including any Model Homes), Borrower shall not be entitled to include in the Borrowing Base at any one time any Spec Homes in violation of the Spec Home Concentration Limitation, which shall mean for each and every Project financed hereunder, more Spec Homes than are permitted under the lesser of (i) five (5) months’ appraised absorption for the Project, (ii) five (5) months’ actual absorption for the Project, as determined by Lender from time to time based upon the actual prior six-month Spec Home Limitation.sales average for the Project, or (iii) twenty-five (25)