Common use of The Line of Credit Clause in Contracts

The Line of Credit. Subject to and upon the terms, conditions, covenants and agreements contained herein (including the proviso below) and in the Revolving Note (as hereinafter defined), the Bank agrees to loan to the Borrower, at any time and from time to time prior to November 17, 2010 (the maturity of the Revolving Note), such amounts as the Borrower may request up to but not exceeding at any time the aggregate principal amount of $100,000,000 (as such amount may be increased from time to time pursuant to the proviso below, the “Total Commitment”); within such limits and during such period, the Borrower may borrow, repay and re-borrow hereunder (the “Line of Credit”); provided, however, that, from time to time upon the written request of the Borrower to the Bank and upon the written consent of the Bank to such request (which consent may or may not be granted by the Bank in its sole and absolute discretion), the Total Commitment may be increased to an amount not to exceed $200,000,000; provided, further, however, that, in connection with any written request of the Borrower to the Bank to increase the Total Commitment in accordance with the immediately preceding proviso, the Bank's requested consent thereto shall be deemed to have been automatically denied unless the Bank shall have delivered to the Borrower a written consent to such increase within fifteen (15) Business Days after such written request is delivered to the Bank. All loans under the Line of Credit shall be evidenced by a Revolving Line of Credit Note (as amended, modified or supplemented, increased, renewed, extended or replaced from time to time, the “Revolving Note”) in form and substance satisfactory to the Bank, executed by the Borrower and payable to the order of the Bank, and bearing interest upon the terms provided therein (but in no event to exceed the maximum non-usurious interest rate permitted by law). The principal of, and interest on, the Revolving Note shall be due and payable as provided in the Revolving Note. Notation by the Bank on its records shall constitute prima facie evidence of the amount and date of any payment or borrowing thereunder.

The Line of Credit. Subject to the terms and upon conditions of this Agreement, in reliance on the termsrepresentations, conditionswarranties, and covenants and agreements contained herein (including the proviso below) and in each Request for an Advance executed hereunder, Lender establishes for Borrower a Line of Credit in the Revolving Note maximum principal amount of Two Million and no/100 Dollars ($2,000,000.00) under which Lender may, but shall not be required to, make Advances to the Borrower to finance the origination of Mortgage Loans up to the least of (i) one-hundred percent (100%) of the unpaid principal balance of such Mortgage Loans, (ii) the net amount advanced by Borrower at the closing of the Mortgage Loans or (iii) the net value of the Mortgage Loans as hereinafter defined)detailed on the lock confirmation provided by the Investor. For each Mortgage Loan funded from an Advance, the Bank agrees to loan Borrower shall pay Lender a fee equal to the Borrower, amount set forth on the fee schedule attached hereto as Schedule I (“Fee Schedule”). The unpaid balance of the Line of Credit shall bear interest at any time and a fluctuating rate equal from time to time prior to November 17, 2010 (the maturity of the Revolving Note), such amounts as the Borrower may request up to but not exceeding at any time the aggregate principal amount of $100,000,000 (as such amount may be increased from time to time pursuant to the proviso belowBorrowing Rate, the “Total Commitment”); within such limits and during such period, the Borrower may borrow, repay and re-borrow hereunder (the “Line of Credit”); provided, however, that, from time to time upon the written request of the Borrower to the Bank and upon the written consent of the Bank to such request (which consent may or may not be granted by the Bank in its sole and absolute discretion), the Total Commitment may be increased to an amount not to exceed $200,000,000; provided, further, however, that, in connection with any written request of the Borrower to the Bank to increase the Total Commitment in accordance with the immediately preceding proviso, the Bank's requested consent thereto shall be deemed to have been automatically denied unless the Bank shall have delivered to the Borrower a written consent to such increase within fifteen (15) Business Days after such written request is delivered to the Bank. All loans under the Line of Credit shall be evidenced by a Revolving the Line of Credit Note Note. Lender’s obligation to make an Advance is conditioned upon (as amended, modified or supplemented, increased, renewed, extended or replaced from time to time, a) review and approval by Lender of the “Revolving Note”) in form Mortgage Loan Documents and substance satisfactory such other documents relating to the BankMortgage Loans as it deems appropriate, (b) Lender’s satisfaction that the Mortgage Loan Documents will be delivered to Lender, and (c) Lender’s satisfaction of Borrower’s ability to dispose of the Mortgage Loans through a sale on the secondary market to an Investor. In the event that Lender shall exercise its right to review the original Mortgage Loan Documents prior to making the Advance, Lender shall coordinate such review with Borrower such that the funding of the Mortgage Loans to the Mortgagor shall not be unreasonably delayed. The Borrower shall, if it wishes to request an Advance hereunder, give notice sufficient to Lender of such proposed Advance in a manner acceptable to Lender and prior to the funding of such proposed Advance, Borrower shall deliver to Lender a duly executed Request for an Advance together with all supporting documentation required by this Agreement. If Lender has consented to the Advance, Lender shall, subject to the satisfaction by the Borrower and payable of the conditions precedent specified in Section 3, make the proceeds of such Advance available to the order title company funding the Mortgage Loan on the Closing Date by transferring to the title company funding the Mortgage Loan immediately available funds in the amount of such Advance in accordance with the Bank, and bearing interest upon disbursement instructions set forth in the terms provided therein (but in no event Request for an Advance. Notwithstanding anything herein to exceed the maximum non-usurious interest rate permitted by law). The principal of, and interest oncontrary, the Revolving Note amount of an Advance shall not exceed Borrower’s net cash investment in the Mortgage excluding any points, commitment fees, expenses and Escrow Payments paid to or deposited with Borrower. Each Advance shall be due and payable as provided in repaid on or before thirty (30) days from the Revolving NoteClosing Date with respect to the Advance. Notation by the Bank Lender’s obligations under this Section 2 shall continue for a term ending on its records shall constitute prima facie evidence of the amount and date of any payment or borrowing thereunderMay 31, 2012.

The Line of Credit. Subject to all of the terms and upon conditions set forth in this Agreement, Bank hereby establishes the termsLine of Credit in Borrower’s favor pursuant to which Bank shall, conditionsin its sole discretion, covenants and agreements contained herein on Borrower’s request from time to time made after the date hereof until June 1, 2007 (including the proviso below“Expiration Date”) and for repayment by Bank, make Revolving Loans to Borrower in an aggregate amount up to the lesser of (i) the Borrowing Base, or (ii) the Credit Limit. The Line of Credit shall be evidenced by the Revolving Note Note. All Revolving Loans, including, without limitation, any and all principal, accrued interest,. late charges and other costs and expenses incurred in connection with the administration and collection of the Loan, shall be due and payable on the Expiration Date. Bank shall have no obligation to make any Loan available to Borrower after the occurrence of a Default or an Event of Default hereunder (as hereinafter definedunless the same has been waived or cured to the satisfaction of Bank). Borrower acknowledges that all Revolving Loans are secured by the Collateral and constitute Obligations, whether or not evidenced by promissory notes and, by reference to this Agreement, the Bank agrees face amount of any promissory note evidencing a Revolving Loan shall be deemed to loan have been automatically amended to conform with any changes to the Borrower, Credit Limit. Payments (and prepayments) of principal in full or in part may be made at any time and from time to time prior to November 17without premium or penalty, 2010 (the maturity of and shall be made on the Revolving Note), such amounts as the Borrower may request up to but not exceeding at any time the aggregate principal amount of $100,000,000 (as such amount may be increased Loans from time to time pursuant to the proviso below, the “Total Commitment”); within such limits and during such period, the Borrower may borrow, repay and re-borrow hereunder (the “Line of Credit”); provided, however, that, from time to time upon the written request of the Borrower to the Bank and upon the written consent of the Bank to such request (which consent may or may not be granted by the Bank in its sole and absolute discretion), the Total Commitment may be increased to an amount not to exceed $200,000,000; provided, further, however, that, in connection with any written request of the Borrower to the Bank to increase the Total Commitment in accordance with the immediately preceding proviso, provisions of this Agreement. Payments of interest calculated on the Bank's requested consent thereto shall be deemed to have been automatically denied unless the Bank shall have delivered to the Borrower a written consent to such increase within fifteen (15) Business Days after such written request is delivered to the Bank. All loans under the Line of Credit shall be evidenced by a Revolving Line of Credit Note (as amended, modified or supplemented, increased, renewed, extended or replaced from time to time, the “Revolving Note”) in form and substance satisfactory to the Bank, executed by the Borrower and payable to the order outstanding balance of the BankRevolving Loans, and bearing interest upon the terms provided therein (but in no event to exceed the maximum non-usurious interest rate permitted by law). The principal of, and interest on, the Revolving Note shall be due and payable as provided in at the rate set forth herein, commencing one month following the date of advance of the first Revolving NoteLoan to Borrower and on the like day of each month thereafter. Notation by the Borrower shall pay to Bank on its records shall constitute prima facie evidence an amount equal to three percent (3.0%) of the amount and date of any payment or borrowing thereundernot made within ten (10) days when due hereunder. All Revolving Loans shall bear interest, calculated on the basis of actual days elapsed and a 360-day year and payable monthly in arrears on the first business day of each month, at a fluctuating per annum rate of interest equal to the Prime Rate. The effective interest rate applicable to Borrower’s Loans shall change on the date of each change in the Prime Rate.

The Line of Credit. Subject to all of the terms and upon the terms, conditions, covenants and agreements contained herein (including the proviso below) and conditions set forth in the Revolving Note (as hereinafter defined)this Loan Agreement, the Bank agrees hereby establishes the Line of Credit in the Borrower’s favor pursuant to loan which Bank shall, at Borrower’s request from time to time made after the date hereof until July 31, 2006 (the “Expiration Date”), make Revolving Loans (including Letters of Credit and Banker’s Acceptances) to Borrower in an aggregate amount up to $250,000.00 (the “Credit Limit”). All Revolving Loans are due and payable on the Expiration Date and no Letter of Credit or other extension of credit may have an expiry after the Expiration Date. Borrower acknowledges that all Revolving Loans are secured by the Collateral and constitute Obligations, whether or not evidenced by promissory notes and, by reference to this Loan Agreement, the face amount of any promissory note evidencing a Revolving Loan shall be deemed to have been automatically amended to conform with any changes to the Borrower, Credit Limit. Payments (and prepayments) of principal in full or in part may be made at any time and from time to time prior to November 17without premium or penalty, 2010 (and shall be made on the maturity of the Revolving Note), such amounts as the Borrower may request up to but not exceeding at any time the aggregate principal amount of $100,000,000 (as such amount may be increased Loans from time to time pursuant to in accordance with the proviso below, the “Total Commitment”); within such limits and during such period, the Borrower may borrow, repay and re-borrow hereunder (the “Line provisions of Credit”); provided, however, that, from time to time upon the written request of the Borrower to the Bank and upon the written consent of the Bank to such request (which consent may or may not be granted this Loan Agreement. Unless extended by the Bank in its sole and absolute discretion)writing, the Total Commitment Borrower’s ability to request Revolving Loans hereunder shall expire on the Expiration Date. Until the Expiration Date or the termination of the Line of Credit pursuant to the provisions of this Loan Agreement, principal amounts of Revolving Loans repaid may be increased to an amount not to exceed $200,000,000; provided, further, however, that, in connection with any written request of the Borrower to the Bank to increase the Total Commitment reborrowed hereunder in accordance with the immediately preceding proviso, the Bank's requested consent thereto provisions of this Loan Agreement. All Revolving Loans shall be deemed Prime Rate Loans and shall bear interest, calculated on the basis of actual days elapsed and a 360-day year and payable monthly in arrears on the last Business Day of each month, at a fluctuating per annum rate of interest equal to have been automatically denied unless the Bank Prime Rate. The effective interest rate applicable to Borrower’s Loans shall change on the date of each change in the Prime Rate. Borrower shall have delivered the right to terminate the Borrower a written consent Line of Credit at any time on 2 days’ notice to such increase within fifteen (15) Business Days after such written request is delivered to the Bank. All loans Bank upon repayment in full of all amounts advanced under the Line of Credit shall be evidenced by a Revolving Line of Credit Note (as amended, modified or supplemented, increased, renewed, extended or replaced from time to time, the “Revolving Note”) in form and substance satisfactory to the Bank, executed by the Borrower and payable to the order of the Bank, and bearing interest upon the terms provided therein (but in no event to exceed the maximum non-usurious interest rate permitted by law). The principal of, and interest on, the Revolving Note shall be due and payable as provided in the Revolving Note. Notation by the Bank on its records shall constitute prima facie evidence of the amount and date of any payment or borrowing thereunderCredit.