Common use of Investments, Loans, Advances and Acquisitions Clause in Contracts

Investments, Loans, Advances and Acquisitions. Neither the Parent nor any Borrower will purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness (subject to Section 6.09 below) or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: (a) Permitted Investments; and (b) Investments (directly or indirectly) in Real Properties constituting single family rental properties, provided that: (i) Investments in unimproved land shall not exceed 5% of Total Asset Value; (ii) Investments in ground-up construction and development and re-development projects (valued on cost incurred to date in accordance with GAAP) shall not exceed 10% of Total Asset Value; (iii) Investments in joint ventures shall not exceed 15% of Total Asset Value; and (iv) Investments in mortgage note receivables shall not to exceed 5% of Total Asset Value. Provided further that the aggregate Investment described in Section 6.03(b) (i), (ii), (iii) and (iv) above shall not exceed 20% of Total Asset Value. To the extent that any of the terms of subsection (b) are not satisfied, no Default will result but Total Asset Value shall be reduced by any overage amount.

Investments, Loans, Advances and Acquisitions. Neither The Parent and the Parent nor any Borrower will not purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness (subject to Section 6.09 7.9 below) or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: (a) Permitted Investments; and (b) Investments (directly or indirectly) in Real Properties constituting single family rental propertiesProperties, provided that: (i) Investments in unimproved land shall not exceed 5% of Total Asset Value; (ii) Investments in ground-up construction and development and re-development projects (valued on cost incurred to date in accordance with GAAP) Development Assets shall not exceed 10% of Total Asset Value; (iii) Investments in joint ventures in which Parent, Borrower, or any of its Subsidiaries fails to hold a 90% ownership interest shall not exceed 155% of Total Asset Value; and (iv) Investments in mortgage note receivables Real Properties other than multifamily properties shall not to exceed 510% of Total Asset Value. Provided further that the aggregate Investment described in Section 6.03(b7.3(b) (i), (ii), (iii) and (iv) above shall not exceed 20% of Total Asset Value. To the extent that any of the terms of subsection (b) are not satisfied, no Default will result but Total Asset Value shall be reduced by any overage amount.

Investments, Loans, Advances and Acquisitions. Neither the Parent nor any The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness (subject to Section 6.09 below) or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: (a) Permitted Investments; (b) Real Property operated as student housing communities; (c) investments in Unconsolidated Affiliates so long as the aggregate amount of such investments described in this clause (c) does not exceed twenty percent (20%) of the Total Asset Value after giving effect to such investments; (d) undeveloped land, so long as the aggregate Historical Value of such land does not exceed ten percent (10%) of Total Asset Value, after giving effect to such investments; (e) investments not related to the ownership, development, operation and management of student housing communities, so long as the value of same, determined in accordance with this Agreement, do not exceed ten percent (10%) of Total Asset Value, after giving effect to such investments; (f) Assets Under Development, so long as the aggregate Historical Value thereof does not exceed twenty percent (20%) of the Total Asset Value after giving effect to such investments; and (bg) Investments (directly or indirectly) mergers, consolidations and other transactions permitted under Section 6.03, so long as same do not cause the Borrower to be in Real Properties constituting single family rental propertiesviolation of any provision of this Section 6.04. In addition to the foregoing, provided that: (i) Investments in unimproved land shall not exceed 5% of Total Asset Value; (ii) Investments in ground-up construction and development and re-development projects (valued on cost incurred to date in accordance with GAAP) shall not exceed 10% of Total Asset Value; (iii) Investments in joint ventures shall not exceed 15% of Total Asset Value; and (iv) Investments in mortgage note receivables shall not to exceed 5% of Total Asset Value. Provided further that the aggregate Investment value of the investments described in Section 6.03(b) clauses (ic), (iid), (iiie) and (iv) f), above shall not exceed 20% thirty percent (30%) of Total Asset ValueValue after giving effect to such investments. To the extent that any of the terms of subsection (b) are not satisfiedThe investments described above may be purchased or acquired, no Default directly or indirectly, through partnerships, joint ventures, or otherwise. The calculations in this Section will result but Total Asset Value shall be reduced by any overage amountmade without duplication if an investment is within more than one category described in this Section.

Investments, Loans, Advances and Acquisitions. Neither the Parent nor any Borrower will purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness (subject to Section 6.09 below) or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: (a) Permitted Investments; and (b) Investments (directly or indirectly) in Real Properties constituting single family and 2-4 unit multifamily rental properties, provided that: (i) Investments in unimproved land shall not exceed 5% of Total Asset Value; (ii) Investments in ground-up construction and development and re-development projects (valued on cost incurred to date in accordance with GAAP) shall not exceed 10% of Total Asset Value; (iii) Investments in joint ventures shall not exceed 15% of Total Asset Value; and (iv) Investments in mortgage note receivables shall not to exceed 5% of Total Asset Value. Provided further that the aggregate Investment described in Section 6.03(b) (i), (ii), (iii) and (iv) above shall not exceed 20% of Total Asset Value. To the extent that any of the terms of subsection (b) are not satisfied, no Default will result but Total Asset Value shall be reduced by any overage amount.

Investments, Loans, Advances and Acquisitions. Neither The Parent and the Parent nor any Borrower will not purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness (subject to Section 6.09 7.9 below) or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: (a) Permitted Investments; and (b) Investments (directly or indirectly) in Real Properties constituting single family rental propertiesProperties, provided that: (i) Investments in unimproved land shall not exceed 5% of Total Asset Value; (ii) Investments in ground-up construction and development and re-development projects (valued on cost incurred to date in accordance with GAAP) Development Assets shall not exceed 10% of Total Asset Value;; 116430174v7 61 (iii) Investments in joint ventures in which Parent, Borrower, or any of its Subsidiaries fails to hold a 90% ownership interest shall not exceed 155% of Total Asset Value; and (iv) Investments in mortgage note receivables Real Properties other than multifamily properties shall not to exceed 510% of Total Asset Value. Provided further that the aggregate Investment described in Section 6.03(b7.3(b) (i), (ii), (iii) and (iv) above shall not exceed 20% of Total Asset Value. To the extent that any of the terms of subsection (b) are not satisfied, no Default will result but Total Asset Value shall be reduced by any overage amount.