Common use of Limitations on Development, Construction Clause in Contracts

Limitations on Development, Construction. Renovation and -------------------------------------------------------- Purchase of Hotel Properties. Neither the Parent nor the Borrower shall or ---------------------------- shall permit any of their respective Subsidiaries to engage in the development, construction or expansion of any Hotel Properties with respect to which the cost to complete the same shall at any time exceed $75,000,000 for all such development, construction and expansion in the aggregate or enter into any agreements to purchase Hotel Properties or other assets, unless the Parent, the Borrower or such Subsidiary (as applicable) at all times has available sources of capital equal to the total cost to complete such development or construction and to pay in full the cost of the purchase of such Hotel Properties or other assets (to the extent that the payment of such cost of purchase constitutes a recourse obligation of the Parent, the Borrower or its Subsidiary), which available sources of capital may include Advances to the extent that the Borrower may borrow the same for the purposes required or other Indebtedness permitted by the terms of this Agreement.

Limitations on Development, Construction. Renovation and -------------------------------------------------------- Purchase of Hotel Properties. Neither the Parent nor the Borrower shall or ---------------------------- shall permit any of their respective Subsidiaries to (a) engage in the development, construction or expansion of any Hotel Properties with respect to which except for Development Properties permitted by the cost to complete the same shall at any time exceed $75,000,000 for all such development, construction and expansion in the aggregate provisions of Section 6.07 or (b) enter into any agreements to purchase Hotel Properties or other assets, unless with respect to such purchase the Parent, the Borrower or such Subsidiary (as applicable) at all times has available sources of capital equal to the total cost to complete such development or construction and to pay in full the cost of the purchase of such Hotel Properties or other assets (to the extent that the payment of such cost of purchase constitutes a recourse obligation of the Parent, the Borrower or its Subsidiary), which available sources of capital may include Advances to the extent that the Borrower may borrow the same for the purposes required or other Indebtedness permitted by the terms of this Agreement.