Common use of Limitation on Loan Advances Clause in Contracts

Limitation on Loan Advances. 11.1 Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, the principal amount of the Loan that may be used by the Borrower to make Non-Qualified REIT Investments shall not exceed 4.5% of the Value of the Lender's Total Assets. 11.2 The Lender shall not be required to make any advance of the Loan proceeds unless, simultaneously with the Lender making an advance of the Loan proceeds, the Borrower pays cash in an amount equal to at least two percent (2%) of Acquisition Cost of such Investment Position. The Borrower shall, upon request by the Lender, demonstrate to the Lender that the Borrower has the requisite cash available for and irrevocably committed to such purpose, and that such cash was in fact so applied by the Borrower. 11.3 The Borrower expects from time to time to incur due diligence expenses and other expenses in connection with its evaluation of potential Investment Positions that the Borrower ultimately decides not to acquire (such costs are referred to in this Agreement as "Pre-Funding Acquisition Costs"). The Borrower shall be entitled to request advances of Loan proceeds to pay such Pre-Funding Acquisition Costs provided that they do not exceed, as to any Investment Position, $50,000 or 75% of the anticipated Carrying Cost of the Investment Position, whichever is less.

Limitation on Loan Advances. 11.1 Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, the principal amount of the Loan that may be used by the Borrower to make Non-Qualified REIT Investments shall not exceed 4.5% of the Value of the Lender's Total Assets. 11.2 The Lender shall not be required to make any advance of the Loan proceeds unless, simultaneously with the Lender making an advance of the Loan proceeds, the Borrower pays cash in an amount equal to at least two percent (2%) of Acquisition Cost of such Investment Position. The Borrower shall, upon request by the Lender, demonstrate to the Lender that the Borrower has the requisite cash available for and irrevocably committed to such purpose, and that such cash was in fact so applied by the Borrower. 11.3 The Borrower expects from time to time to incur due diligence expenses and other expenses in connection with its evaluation of potential Investment Positions that the Borrower ultimately decides not to acquire (such costs are referred to in this Agreement as "Pre-Pre- Funding Acquisition Costs"). The Borrower shall be entitled to request advances of Loan proceeds to pay such Pre-Funding Acquisition Costs provided that they do not exceed, as to any Investment Position, $50,000 or 75% of the anticipated Carrying Cost of the Investment Position, whichever is less.