Inventory Limits Clause Samples

Inventory Limits. Section 7.2.14 is deleted and replaced with “[Reserved]” as of the Effective Date.

Inventory Limits. At any time when the Investment Grade Period is not in effect, the Loan Parties shall not permit: (i) The Dollar value of Unentitled Land to exceed twenty percent (20%) of the sum of (A) Consolidated Tangible Net Worth plus (B) the lesser of (i) 50% of the principal amount of the Subordinated Debt, or (ii) $500,000,000, as calculated as of the end of each fiscal quarter; (ii) The Dollar value of Finished Lots and Land under Development plus Unentitled Land to exceed 1.25 times the sum of (A) Consolidated Tangible Net Worth plus (B) the lesser of (i) 50% of the principal amount of the Subordinated Debt, or (ii) $500,000,000, 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.

Inventory Limits. (a) The Loan Parties shall not permit: (i) The Dollar value of Unentitled Land to exceed the lesser of twenty percent (20%) of Consolidated Tangible Net Worth or $200,000,000, as calculated as of the end of each fiscal quarter; or (ii) The Dollar value of Finished Lots and Land under Development plus Unentitled Land to exceed 1.25 times the sum of (A) Consolidated Tangible Net Worth plus (B) $200,000,000, as calculated as of the end of each fiscal quarter. (b) If as of the last day of any fiscal quarter, the number of Unsold Dwelling Units exceeds 50% of the aggregate number of Sold Dwelling Units and Unsold Dwelling Units, the Loan Parties shall not begin construction of any new Unsold Dwelling Units commencing on the date the Compliance Certificate is due with respect to such fiscal quarter in accordance with Section 7.3.3.1 until the number of Unsold Dwelling Units is less than 50% of the aggregate number of Sold Dwelling Units and Unsold Dwelling Units as reasonably determined by Borrower in a accordance with a revised calculation provided in writing by Borrower to Agent.

Inventory Limits. At no time may the Standing Inventory for any Module exceed the number set forth for such Module in EXHIBIT H attached hereto. Construction of an additional Unit may commence only when that Unit or another Unit in the Standing Inventory of the same Module has been sold. A Unit will be considered sold only when Borrower has sold such Unit to a bona-fide third party purchaser: (1) who has been prequalified for a loan by an institutional lender acceptable to the Bank and such sale is evidenced by a signed, binding sales contract which the purchaser has no right to rescind (which will mean that, notwithstanding the provisions of 5.2(f) below, a Final Order of Registration or Final Public Report, as applicable, will be required); or (2) if such purchaser is a cash purchaser, who has provided evidence satisfactory to the Bank that said purchaser has cash sufficient to close the purchase and, in either case, the purchaser has made a deposit to escrow of not less than $2,000.00 for a multi-family Unit and not less than $3,000.00 for a single- family Unit. In determining whether the sales requirement is met, sales to officers, directors or employees of Borrower or to affiliates of Borrower or such officers, directors or employees shall not be included, unless otherwise agreed by the Bank.