Common use of Redemption Policy Clause in Contracts

Redemption Policy. Members may submit a request for withdrawal as a Member of the Company or request a partial redemption of their Units at the Repurchase Price (“Withdrawal Request”). The Repurchase Price per Unit is the current NAV (as determined under Section 4.2) divided by the total number of outstanding Units. The requesting Member may receive the full amount requested provided that the following conditions have been met: (a) the Member has been a Member of the Company for a period of at least twelve (12) months; and (b) the Member provides the Company with a Withdrawal Request at least ninety (90) days prior to the end of a the calendar quarter for the Withdrawal Request; (c) all current Company expenses have been paid, including all distributions of the Preferred Return pursuant to Section 10.1 and the Asset Management Fee pursuant to Section 4.1 for such calendar quarter; and (d) adequate reserves have been established for anticipated Company operating costs and other expenses and advances to protect and preserve the Company’s investments in Mortgage Loans; (e) adequate provision has been made for the payment of future monthly cash distributions of the Preferred Return, and (f) a determination by the Managing Member, in its sole discretion, that the Company has sufficient Distribution Cash and is the appropriate financial condition to honor such Withdrawal Request. Notwithstanding the foregoing, the Managing Member may, in its sole discretion, waive such withdrawal requirements if a Member is experiencing undue hardship. Withdrawal requests will be paid, subject to the provisions below, within 20 days after the end of the calendar quarter, at the price per Unit set at the end of the quarter. The Company is not required to liquidate any Properties if at any time the Company does not have sufficient Distributable Cash to satisfy any Withdrawal Requests. In such circumstance, the Company will, at the Managing Member’s sole discretion, distribute that portion of the Distributable Cash available to requesting Members pro rata based upon the relative amounts being withdrawn as set forth in the Withdrawal Requests. Notwithstanding the foregoing, the Managing Member reserves the right to utilize Distributable Cash to liquidate the capital accounts of deceased Members or ERISA plan investors in whole or in part, before satisfying outstanding Withdrawal Requests from any other Members. The Managing Member also reserves the right, at any time, to liquidate the capital accounts of ERISA plan investors to the extent the Managing Member determines, in its sole discretion, that any such liquidation is necessary in order to remain exempt from the Department of Labor’s “plan asset” regulations.

Redemption Policy. No Member may withdraw within the first twelve (12) months a Member's admission to the Company. Thereafter, the Company will use its best efforts to honor requests for a return of capital subject to, among other things, the Company’s then available cash flow, financial condition, and approval by the Manager. Notwithstanding the foregoing, the Manager may, in its sole discretion, waive such withdrawal requirements if a Member is experiencing undue hardship. Members may submit a request for withdrawal as a Member of the Company Company, or request a partial redemption of their Units at the Repurchase Price (“Withdrawal Request”). The Repurchase Price per Unit is the current NAV (as determined under Section 4.2) divided by the total number of outstanding Units. The requesting Member interests, and may receive the full amount requested a 100% return of capital provided that the following conditions have been met: (a) the Member has been a Member of the Company for a period of at least twelve (12) months; and (b) the Member provides the Company with a Withdrawal Request at least ninety (90) days prior to the end of a the calendar quarter for the Withdrawal Request; (c) all current Company expenses have been paid, including all distributions of the Preferred Return pursuant to Section 10.1 and the Asset Management Fee pursuant to Section 4.1 for such calendar quarter; and (d) adequate reserves have been established for anticipated Company operating costs and other expenses and advances to protect and preserve the Company’s investments in Mortgage Loans; (e) adequate provision has been made for the payment of future monthly cash distributions of the Preferred Return, and (f) a determination by the Managing Member, in its sole discretion, that the Company has sufficient Distribution Cash and is the appropriate financial condition to honor such Withdrawal Request. Notwithstanding the foregoing, the Managing Member may, in its sole discretion, waive such withdrawal requirements if a Member is experiencing undue hardship. Withdrawal requests will be paid, subject to the provisions below, within 20 days after the end of the calendar quarter, at the price per Unit set at the end of the quarter. While the Company will not establish a reserve from which to fund withdrawals of Members’ capital accounts, the Company’s business model does anticipate large cash flows sufficient to be able to honor expected withdrawal requests. The Company is will not required establish a reserve from which to liquidate fund withdrawals of Members’ capital accounts and such withdrawals are subject to the availability of cash in any Properties if calendar quarter to make withdrawal distributions (“Cash Available for Withdrawals”) only after: (i) all current Company expenses have been paid (including compensation to the Manager, Manager and its affiliates as described in this Offering Circular); (ii) adequate reserves have been established for anticipated Company operating costs and other expenses and advances to protect and preserve the Company’s investments in Mortgage Loans; and (iii) adequate provision has been made for the payment of all monthly cash distributions owing to Members. If at any time the Company does not have sufficient Distributable Cash Available for Withdrawals to satisfy distribute the quarterly amounts due to all Members that have outstanding withdrawal requests, the Company is not required to liquidate any Withdrawal RequestsProperties for the purpose of liquidating the capital account of withdrawing Members. In such circumstancecircumstances, the Company will, at the Managing Member’s sole discretion, is merely required to distribute that portion of the Distributable Cash available Available for Withdrawals remaining in such quarter to requesting all withdrawing Members pro rata based upon the relative amounts being withdrawn as set forth in the Withdrawal RequestsRequest. Notwithstanding the foregoing, the Managing Member Manager reserves the right to utilize Distributable all Cash Available for Withdrawals to liquidate the capital accounts of deceased Members or ERISA plan investors in whole or in part, before satisfying outstanding Withdrawal Requests withdrawal requests from any other Members. The Managing Member Manager also reserves the right, at any time, to liquidate the capital accounts of ERISA plan investors to the extent the Managing Member Manager determines, in its sole discretion, that any such liquidation is necessary in order to remain exempt from the Department of Labor’s “plan asset” regulations.