Land Under Development Clause Samples

Land Under Development. With respect to each Project which is Land Under Development, the lesser of (i) the sum of (A) seventy-five percent (75%) of the Obligor’s actual cost incurred to purchase the Land component of the Project, plus (B) (1) seventy-five percent (75%) of the Budgeted Lot Cost for the Project (less the Obligor’s actual cost incurred to purchase the subject Land), multiplied by (2) the Completion Percentage for the Project, and (ii) the sum of (A) sixty-five percent (65%) of the Appraised Value of the Land component of the Project, plus (B) (1) sixty-five percent (65%) of the Appraised Value of the Project (less the Appraised Value of the subject Land), multiplied by (2) the Completion Percentage for the Project; provided, however, that during any period in which the aggregate Appraised Value of Raw Land and Land Under Development exceeds 125% of Tangible Net Worth, 75% shall be reduced to 70% and 65% shall be reduced to 60% in the foregoing formulas with respect to the portion of Land Under Development in the Borrowing Base in excess of the amount of Land Under Development that would cause the aggregate Appraised Value of Raw Land and Land Under Development to equal 125% of Tangible Net Worth;

Land Under Development. Land Under Development in each Approved Subdivision may be included in the Borrowing Base as Eligible Collateral for a period of not more than: (A) with respect to any Attached Lots or High Density Lots within an Approved Subdivision (Subject to Lender’s right to adjust such High Density Lot eligibility term, either by increasing or decreasing same, in connection with Lender’s approval of the applicable Subdivision as an Approved Subdivision), twenty-four (24) Calendar Months after the first applicable Lot Eligibility Date for such Attached Lots or High Density Lots, or (B) with respect to Detached Lots, thirty (30) Calendar Months after the first applicable Lot Eligibility Date for such Land Under Development, subject to the Maximum Allowed Advance limitations for the aggregate amount of the Commitment Amount applicable to the Land Under Development for such Approved Subdivision. The foregoing eligibility periods for Land Under Development may be extended for an additional six (6) Calendar Months upon written notice to the Lender no earlier than 90 days and no later than thirty (30) days prior to the expiration of such original time period and provided no Material Adverse Change, no Unmatured Event of Default nor any Event of Default has occurred and is continuing.

Land Under Development. A Project (or a phase of a Project) consisting of Entitled Land on which a Borrower has initiated development in the form of grading, road or utility installation and is actively continuing such development in the ordinary course thereof, or is actively pursuing a final map or equivalent approval, but as to which not more than fifty percent (50%) of the Total Applicable Development Costs have been expended, whether such Total Applicable Development Costs have been expended by such Borrower or a prior owner of the Land; provided, however, that such a Project (or phase of a Project) shall cease to be considered Land Under Development if such Borrower has failed to initiate such development within twelve (12) months of the acquisition date of same or after the expiration of thirty (30) months from the acquisition date of same (provided, further, that ineligibility of a Project as Land Under Development shall not prevent such Project from later qualifying as Land Under Development, Unsold Lots, Sold Homes Under Construction or Unsold Work in Progress). LEASES. Leases, licenses and agreements whether written or oral, relating to the use of occupation of space in or on the Real Estate.

Land Under Development. Section 3.2(b)(A) of the Loan Agreement is hereby amended to replace the reference to “twenty-four (24) Calendar Months” with “eighteen (18) Calendar Months”. Section 3.2(b)(B) of the Loan Agreement is hereby amended to replace the reference to “thirty (30) Calendar Months” with “twenty-four (24) Calendar Months”.

Land Under Development. Intentionally omitted.

Land Under Development. Net Tangible Assets Ratio. The cost basis (as calculated in accordance with GAAP) of Land Under Development shall not exceed 30% of Consolidated Net Tangible Assets.

Land Under Development. Lots constituting Land Under Development in each Approved Subdivision may be included in the Borrowing Base as Eligible Collateral for a period of not more than twenty-four (24) Calendar Months after the first applicable Lot Eligibility Date for such Lots, subject to the Maximum Allowed Advance limitations for the aggregate amount of the Commitment Amount applicable to the Land Under Development for such Approved Subdivision.