Common use of The Loans and Commitment Clause in Contracts

The Loans and Commitment. (a) Subject to the terms and conditions and relying on the representations and warranties contained in this Agreement, so long as the terms and provisions of this Agreement are complied with by the Borrower, the Lender agrees to advance Loans to the Borrower in principal amounts up to but not exceeding at any one time Three Million and No/100 Dollars ($3,000,000.00) (the "Commitment Amount"). To evidence the Loans made by the Lender pursuant to this Section 2.01, the Borrower will execute and deliver the Note payable to the order of the Lender in the face amount of $3,000,000.00, dated as of the date hereof and payable on the earlier of (i) the Maturity Date or (ii) the Completion Date of the last Interim Construction Loan or the last Lot Purchase Loan originated prior to the Maturity Date. Accrued interest shall be due and payable as provided in the Note. (b) At such time as a Loan shall have been paid in full, and if the Borrower is not in Default and prior to the Maturity Date, the amount of funds advanced hereunder shall once again be available to the Borrower for additional Loans to be made in accordance with the terms and provisions hereof. The amount of funds available under the Commitment at any time prior to the Maturity Date, provided that the Borrower is not in Default, shall be determined by subtracting the Maximum Loan Amounts of Loans which are in place from $3,000,000.00. The resulting figure shall be available for additional Interim Construction loans under the Commitment. (c) At no time shall Lots or Units be located other than in the Eligible CMSAs. Furthermore, in no event may more than $900,000.00 of the Commitment be allocated for the construction of Speculative Starts and Model Homes throughout Eligible CMSAs, and no more than $250,000.00 of the Commitment be allocated for Lot Purchase Loans throughout Eligible CMSAs. (d) Subject to the foregoing, the Borrower may, at any time until the Maturity Date, submit to the Lender a Borrowing Request requesting the Lender to advance one or more Lot Purchase Loans for the acquisition of one or more Lots or to advance one or more Interim Construction Loans for the acquisition and construction of any one or more Units. The initial Borrowing Request for each Lot Purchase Loan (i) shall identify the subdivision and the Lot or Lots to be acquired and (ii) shall be accompanied by copies of fully executed purchase and sale agreements executed by the Borrower and the seller of the Lot or Lots. The initial Borrowing Request for each Interim Construction Loan (i) shall identify the Subdivision and the Lot or Lots to be acquired out of the proceeds of such Interim Construction Loan, (ii) shall specify whether such Lot or Lots and the Residence or Residences to be located thereon are Presales, Model Homes or Speculative Starts, and (iii) shall be accompanied by copies of fully executed sales contracts for those Units designated as Presales. The initial Borrowing Request for each Interim Construction Loan shall also be accompanied with a Budget and Plans. The subsequent Borrowing Requests for each Interim Construction Loan must give sufficient detail as to the identity of the Units for which the Advance is being requested and must be accompanied by an executed Bills Paid Affidavit. (e) All Loans closed under this Agreement shall be subject to approval by the Lender in accordance with the Lender's usual underwriting guidelines and procedures, consistently applied, and shall conform in all respects to the rules and regulations governing the Lender as a federally chartered and insured savings bank. Such underwriting guidelines shall include, but not be limited to, a monthly review of the Borrower's inventory report pursuant to Section 5.30 hereof. (f) Notwithstanding the Lender's approval of the Borrower's Borrowing Request, the Borrower must satisfy all of the conditions precedent to any Loan and all terms and conditions set forth in this Agreement before the Lender shall be obligated to make any Loan or any Advance thereunder.

The Loans and Commitment. (a) Subject to the terms and conditions and relying on the representations and warranties contained in this Agreement, so long as from the terms and provisions date of this Agreement are complied with by through the BorrowerDrawdown Termination Date, the Lender agrees to advance Loans make revolving credit loans to Revolving Credit Borrower from time to time on any Business Day in such amounts as Borrower may request up to the maximum amount hereinafter stated, and Borrower may make prepayments (as permitted or required in Sections 2.07 and 2.08 hereof), and Revolving Credit Borrower reborrowings, in respect thereof; provided, however, that the aggregate principal amounts up amount of all such revolving credit loans (also referred to but not exceeding herein as "Advances") at any one time Three Million and No/100 Dollars ($3,000,000.00) (outstanding shall not exceed the "Commitment Amount")Borrowing Base. To evidence the Loans revolving credit loans made by the Lender pursuant to this Section 2.01Section, the Borrower will issue, execute and deliver the Revolving Credit Note payable to the order of the Lender in the face amount of $3,000,000.00, dated as of the date hereof and payable of this Agreement, PAYABLE ON DEMAND, but if no demand is made, on the earlier of (i) the Maturity Drawdown Termination Date or (ii) the Completion Date of the last Interim Construction Loan or the last Lot Purchase Loan originated prior to the Maturity Date. Accrued interest shall be due and payable as provided in the Note. (b) At such time as a Loan shall have been paid in full, and if the Borrower is not in Default and prior to the Maturity Date, the amount of funds advanced hereunder shall once again be available to the Borrower for additional Loans to be made in accordance with the terms and provisions hereof. The amount of funds available under the Commitment at any time prior to the Maturity Date, provided that the Borrower is not in Default, shall be determined secured by subtracting the Maximum Loan Amounts of Loans which are in place from $3,000,000.00. The resulting figure shall be available for additional Interim Construction loans under the Commitment. (c) At no time shall Lots or Units be located other than in the Eligible CMSAs. Furthermore, in no event may more than $900,000.00 of the Commitment be allocated for the construction of Speculative Starts and Model Homes throughout Eligible CMSAs, and no more than $250,000.00 of the Commitment be allocated for Lot Purchase Loans throughout Eligible CMSAs. (d) Subject to the foregoing, the Borrower may, at any time until the Maturity Date, submit to the Lender a Borrowing Request requesting the Lender to advance one or more Lot Purchase Loans for the acquisition of one or more Lots or to advance one or more Interim Construction Loans for the acquisition and construction of any one or more Units. The initial Borrowing Request for each Lot Purchase Loan (i) shall identify the subdivision and the Lot or Lots to be acquired and (ii) shall be accompanied by copies of fully executed purchase and sale agreements executed by the Borrower and the seller of the Lot or Lots. The initial Borrowing Request for each Interim Construction Loan (i) shall identify the Subdivision and the Lot or Lots to be acquired out of the proceeds of such Interim Construction Loan, (ii) shall specify whether such Lot or Lots and the Residence or Residences to be located thereon are Presales, Model Homes or Speculative Starts, and (iii) shall be accompanied by copies of fully executed sales contracts for those Units designated as Presales. The initial Borrowing Request for each Interim Construction Loan shall also be accompanied with a Budget and Plans. The subsequent Borrowing Requests for each Interim Construction Loan must give sufficient detail as to the identity of the Units for which the Advance is being requested and must be accompanied by an executed Bills Paid Affidavit. (e) All Loans closed under this Agreement shall be subject to approval by the Lender in accordance with the Lender's usual underwriting guidelines and procedures, consistently applied, and shall conform in all respects to the rules and regulations governing the Lender as a federally chartered and insured savings bank. Such underwriting guidelines shall include, but not be limited to, a monthly review of the Borrower's inventory report pursuant to Section 5.30 hereof. (f) Notwithstanding the Lender's approval of the Borrower's Borrowing Request, the Borrower must satisfy all of the conditions precedent Collateral. Thereafter, at the sole discretion of Lender, the term of the Revolving Credit Note and the Drawdown Termination Date may be extended for a term of one (1) year. At the expiration of such term, in the event Borrower has not given Lender sixty (60) days' prior written notice of its intent to any Loan terminate the revolving credit loans pursuant to the Revolving Credit Note, then, at the sole discretion of Lender, the revolving credit loans shall be renewed, and all the Drawdown Termination Date extended, for a period of one (1) year; and at the end of such one (1) year extension, the revolving credit loans may be again extended, from year to year, in the same fashion. Each such extension shall be upon the same terms and conditions as set forth herein and in this Agreement before the Lender shall be obligated Revolving Credit Note and the Security Instruments relating to make any Loan or any Advance thereunder.the same, and upon such

The Loans and Commitment. (a) Subject to the terms and conditions and relying on the representations and warranties contained in this Agreement, so long as the terms and provisions of this Agreement are complied with by the Borrower, the Lender agrees to advance Loans make the following loan to the Borrower Borrowers: Revolving Credit Loans. From the date of this Agreement through the Drawdown Termination Date, the Lender may make revolving credit loans to the Borrowers from time to time on any Business Day in principal such amounts as the Borrowers may request up to but not exceeding the maximum amount thereinafter stated, and the Borrowers may make borrowings, prepayments and re-borrowings (as permitted or required in Sections 2.07 and 2.08 hereof) in respect thereof; provided, however, that the aggregate principal amount of all such revolving credit loans at any one time Three Million outstanding shall not exceed the Borrowing Base, and No/100 Dollars the principal amount of any single advance shall not exceed the Inventory Percentage multiplied by the cost of the Eligible Inventory that is being purchased ($3,000,000.00whether directly, as contemplated by Section 2.03 (a) (the "Commitment Amount"iii), or indirectly by deposit into a Letter of Credit Payment Account, as contemplated by Section 2.03 (a) (iv)). To evidence the Loans revolving credit loans made by the Lender pursuant to this Section 2.01Section, the Borrower Borrowers will issue, execute and deliver the Revolving Credit Note payable to the order of the Lender in the face amount of $3,000,000.00, dated as of the date hereof of this Agreement and payable on the earlier of (i) the Maturity Date or (ii) the Completion Date of the last Interim Construction Revolving Loan or the last Lot Purchase Loan originated prior to the Maturity Date. Accrued interest Interest on the Revolving Credit Note shall accrue at the rate provided in Section 2.02 hereof and shall be due and payable as provided in monthly on the Notefirst day of each month during its term. (b) At such time as a Loan shall have been paid in full, and if the Borrower is not in Default and prior to the Maturity Date, the amount of funds advanced hereunder shall once again be available to the Borrower for additional Loans to be made in accordance with the terms and provisions hereof. The amount of funds available under the Commitment at any time prior to the Maturity Date, provided that the Borrower is not in Default, shall be determined by subtracting the Maximum Loan Amounts of Loans which are in place from $3,000,000.00. The resulting figure shall be available for additional Interim Construction loans under the Commitment. (c) At no time shall Lots or Units be located other than in the Eligible CMSAs. Furthermore, in no event may more than $900,000.00 of the Commitment be allocated for the construction of Speculative Starts and Model Homes throughout Eligible CMSAs, and no more than $250,000.00 of the Commitment be allocated for Lot Purchase Loans throughout Eligible CMSAs. (d) Subject to the foregoing, the Borrower may, at any time until the Maturity Date, submit to the Lender a Borrowing Request requesting the Lender to advance one or more Lot Purchase Loans for the acquisition of one or more Lots or to advance one or more Interim Construction Loans for the acquisition and construction of any one or more Units. The initial Borrowing Request for each Lot Purchase Loan (i) shall identify the subdivision and the Lot or Lots to be acquired and (ii) shall be accompanied by copies of fully executed purchase and sale agreements executed by the Borrower and the seller of the Lot or Lots. The initial Borrowing Request for each Interim Construction Loan (i) shall identify the Subdivision and the Lot or Lots to be acquired out of the proceeds of such Interim Construction Loan, (ii) shall specify whether such Lot or Lots and the Residence or Residences to be located thereon are Presales, Model Homes or Speculative Starts, and (iii) shall be accompanied by copies of fully executed sales contracts for those Units designated as Presales. The initial Borrowing Request for each Interim Construction Loan shall also be accompanied with a Budget and Plans. The subsequent Borrowing Requests for each Interim Construction Loan must give sufficient detail as to the identity of the Units for which the Advance is being requested and must be accompanied by an executed Bills Paid Affidavit. (e) All Loans closed under this Agreement shall be subject to approval by the Lender in accordance with the Lender's usual underwriting guidelines and procedures, consistently applied, and shall conform in all respects to the rules and regulations governing the Lender as a federally chartered and insured savings bank. Such underwriting guidelines shall include, but not be limited to, a monthly review of the Borrower's inventory report pursuant to Section 5.30 hereof. (f) Notwithstanding the Lender's approval of the Borrower's Borrowing Request, the Borrower must satisfy all of the conditions precedent to any Loan and all terms and conditions set forth in this Agreement before the Lender shall be obligated to make any Loan or any Advance thereunder.

The Loans and Commitment. (a) Subject to the terms and conditions and relying on the representations and warranties contained in this Agreement, so long Agreement and except as the terms and provisions of this Agreement are complied with by the Borrowerhereinafter provided, the Lender agrees to advance make to Borrower Interim Construction Loans to in an aggregate principal amount (the Borrower in principal amounts "Commitment Amount") up to but not exceeding at any one time Three Million and No/100 Dollars the lesser of (i) $3,000,000.0012,000,000.00 or (ii) (the "Commitment Amount")aggregate sum of the Maximum Loan Amount of all Interim Construction Loans. To evidence the Loans made by the Lender pursuant to this Section 2.01, the Borrower will issue, execute and deliver the Note payable to the order of the Lender in the face principal amount of $3,000,000.00the Note, dated as of the date hereof and payable on the earlier of (i) the Maturity Date or (ii) the Completion Date of the last Interim Construction Loan or the last Lot Purchase Loan originated prior to the Maturity Drawdown Termination Date. Accrued interest shall be is due and payable as provided in on the NoteNote monthly, the first such payment being due and payable August 1, 1990, and the remaining payments being due and payable on the first (1st) day of each and every succeeding month thereafter and at the maturity thereof. (b) At such time as a an Interim Construction Loan shall have been paid in fullfull and Lender's commitment, duties and if the Borrower is not in Default and prior to the Maturity Dateobligations thereunder have terminated, the amount of funds advanced hereunder thereunder shall once again be available to the Borrower for pursuant to additional Interim Construction Loans to be made in accordance with the terms and provisions hereof; that is, the amount available to Borrower under the Commitment shall increase and decrease in accordance with Advances and principal repayments by Borrower. The amount of funds available under the Commitment at any time prior to the Maturity Date, provided that the Borrower is not in Default, shall be determined by subtracting the Maximum Loan Amounts Amount of all then existing Interim Construction Loans which are in place (regardless of whether all principal has been advanced thereunder) from $3,000,000.0012,000,000.00. The resulting figure shall be available for additional Interim Construction loans Loans under the Commitment. (c) At Notwithstanding anything contained herein to the contrary at no time during the term of this Agreement shall the sum of the aggregate Maximum Loan Amount of all Interim Construction Loans under the Commitment relating to Units located in the Austin CMSA exceed $2,000,000.00; and notwithstanding anything contained herein to the contrary, at no time shall Lots or the sum of the aggregate Maximum Loan Amount of all Interim Construction Loans under the Commitment relating to Units be located other than in the Eligible CMSAs. FurthermoreHouston CMSA exceed $10,000,000.00; and notwithstanding anything contained herein to the contrary, in at no event may more than $900,000.00 time shall the sum of the Commitment be allocated for the construction aggregate Maximum Loan Amount of Speculative Starts and Model Homes throughout Eligible CMSAs, and no more than $250,000.00 of all Interim Construction Loans under the Commitment be allocated for Lot Purchase Loans throughout Eligible CMSAsexceed the Commitment Amount. (d) Subject to the foregoingforegoing and except as otherwise herein provided, the Borrower may, at any time until the Maturity Datetermination of the Commitment as set forth in Section 2.09 hereof, submit to the Lender a Borrowing Request requesting the Lender to advance one or more Lot Purchase Loans for the acquisition of one or more Lots or to advance make under this Agreement one or more Interim Construction Loans for the acquisition and construction of any one or more Units. The initial Such Borrowing Request for each Lot Purchase Loan (i) shall identify state the subdivision and the Lot or Lots to be acquired and (ii) shall be accompanied by copies of fully executed purchase and sale agreements executed by the Borrower and the seller amount of the Lot or Lots. The initial Borrowing Request for each Interim Construction Loan (i) shall requested and identify the Subdivision and the Lot or Lots to be acquired out of the proceeds of such Interim Construction Loan, (ii) shall specify Loan and whether such Lot or Lots and the Residence or Residences to be located thereon are Presales, Model Homes Presales or Speculative Starts, and (iii) shall be accompanied by copies of fully executed sales contracts for those Units designated as Presales. The initial Such Borrowing Request for each Interim Construction Loan shall also be accompanied with a Budget and Plans. The subsequent Borrowing Requests for each Interim Construction Loan must give sufficient detail as to the identity of the Units for which the Advance is being requested and must be accompanied by an executed Bills Paid Affidavit. (e) All Interim Construction Loans closed under this Agreement shall be subject to approval by the Lender in accordance with the Lender's usual underwriting guidelines and procedures, consistently applied, and shall conform in all respects to the rules and regulations governing the Lender as a federally chartered and insured savings bank. Such underwriting guidelines shall include, but not be limited to, a monthly quarterly review of the Borrower's total inventory report pursuant to Section 5.30 hereofof unsold houses and financial statements. (f) Notwithstanding the Lender's approval of the Borrower's Borrowing Request, the Borrower must satisfy all of the conditions precedent to any Interim Construction Loan and all terms and conditions set forth in this Agreement before the Lender shall be obligated to make any Loan Interim Construction Loan, or any Advance thereunder.