Common use of Inventory and Land Purchase Limits Clause in Contracts

Inventory and Land Purchase Limits. 7.2.13.1. The Loan Parties shall not permit: (i) The Dollar value of Unimproved Land to exceed twenty percent (20%) of the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; (ii) The Dollar value of Finished Lots and Land under Development plus Unimproved Land to exceed the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; or (iii) The number of Unsold Dwelling Units existing as of the end of any fiscal quarter to exceed 25% of the number of Dwelling Units conveyed to third party purchasers within the previous twelve (12) months. 7.2.13.2. If the Fixed Charge Coverage Ratio is less than 1.0-to-1.0 and the Cash Flow Coverage Ratio is less than 1.1-to-1.0 for two (2) consecutive fiscal quarters (referred to herein as the "prior two quarters"), then, during the fiscal quarter following the prior two quarters, the Loan Parties shall not purchase land (whether Unimproved Land or otherwise) in amounts which exceed in such quarter the lesser of: (x) the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 (Reporting Requirements) for sales by the Loan Parties to third party purchasers in arm's length transactions during the immediately preceding fiscal quarter; and (y) fifty percent (50%) of the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 (Reporting Requirements) for the average quarterly sales by the Loan Parties to third party purchasers in arm's length transactions during the preceding four (4) fiscal quarters. 7.2.14.

Inventory and Land Purchase Limits. 7.2.13.1. 7.2.13.1 The Loan Parties shall not permit: (i) The Dollar value of Unimproved Land to exceed twenty percent (20%) of the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; (ii) The Dollar value of Finished Lots and Land under Development plus Unimproved Land to exceed the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; or (iii) The number of Unsold Dwelling Units existing as of the end of any fiscal quarter to exceed 25% of the number of Dwelling Units conveyed by any Person who is a Loan Party on the date of determination or any Person that was acquired and merged or consolidated with and into a Person who is a Loan Party on the date of determination to third party purchasers within the previous twelve (12) months. 7.2.13.2. 7.2.13.2 If the Fixed Charge Coverage Ratio is less than 1.0-to-1.0 and the Cash Flow Coverage Ratio is less than 1.1-to-1.0 for two (2) consecutive fiscal quarters (referred to herein as the "prior two quarters"), then, during the fiscal quarter following the prior two quarters, the Loan Parties shall not purchase land (whether Unimproved Land or otherwise) in amounts which exceed in such quarter the lesser of: (x) the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 (Reporting Requirements) for sales by the Loan Parties to third party purchasers in arm's length transactions during the immediately preceding fiscal quarter; and (y) fifty percent (50%) of the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 ([Reporting Requirements) ] for the average quarterly sales by the Loan Parties to third party purchasers in arm's length transactions during the preceding four (4) fiscal quarters. 7.2.14.

Inventory and Land Purchase Limits. 7.2.13.1. 7.2.13.1 The Loan Parties shall not permit: (i) The Dollar value of Unimproved Land to exceed twenty percent (20%) of the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; (ii) The Dollar value of Finished Lots and Land under Development plus Unimproved Land to exceed the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; or (iii) The number of Unsold Dwelling Units existing as of the end of any fiscal quarter to exceed 25% of the number of Dwelling Units conveyed by any Person who is a Loan Party on the date of determination or any Person that was acquired and merged or consolidated with and into a Person who is a Loan Party on the date of determination to third party purchasers within the previous twelve (12) months. 7.2.13.2. 7.2.13.2 If the Fixed Charge Coverage Ratio is less than 1.0-to-1.0 and the Cash Flow Coverage Ratio is less than 1.1-to-1.0 for two (2) consecutive fiscal quarters (referred to herein as the "prior two quarters"), then, during the fiscal quarter following the prior two quarters, the Loan Parties shall not purchase land (whether Unimproved Land or otherwise) in amounts which exceed in such quarter the lesser of: (x) the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 ([Reporting Requirements) ] for sales by the Loan Parties to third party purchasers in arm's length transactions during the immediately preceding fiscal quarter; and (y) fifty percent (50%) of the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 (Reporting Requirements) for the average quarterly sales by the Loan Parties to third party purchasers in arm's length transactions during the preceding four (4) fiscal quarters. 7.2.14.

Inventory and Land Purchase Limits. 7.2.13.1. 7.2.13.1 The Loan Parties shall not permit: (i) The Dollar value of Unimproved Land to exceed twenty percent (20%) of the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; (ii) The Dollar value of Finished Lots and Land under Development plus Unimproved Land to exceed the sum of Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt, as calculated as of the end of each fiscal quarter; or (iii) The number of Unsold Dwelling Units existing as of the end of any fiscal quarter to exceed 25% of the number of Dwelling Units conveyed to third party purchasers within the previous twelve (12) months. 7.2.13.2. 7.2.13.2 If the Fixed Charge Coverage Ratio is less than 1.0-to-1.0 and the Cash Flow Coverage Ratio is less than 1.1-to-1.0 for two (2) consecutive fiscal quarters (referred to herein as the "prior two quarters"), then, during the fiscal quarter following the prior two quarters, the Loan Parties shall not purchase land (whether Unimproved Land or otherwise) in amounts which exceed in such quarter the lesser of: (x) the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 ([Reporting Requirements) ] for sales by the Loan Parties to third party purchasers in arm's length transactions during the immediately preceding fiscal quarter; and (y) fifty percent (50%) of the total land portion of "cost of sales" as reflected in the financial statements delivered pursuant to Section 7.3 (Reporting Requirements) for the average quarterly sales by the Loan Parties to third party purchasers in arm's length transactions during the preceding four (4) fiscal quarters. 7.2.14.