Common use of Guidance Line Clause in Contracts

Guidance Line. Notwithstanding anything contained in this Agreement, the Note or any other Security Instrument to the contrary, the Bank, in its sole discretion, shall have the right, prior to the initial advance under the Revolving Line of Credit with respect to any Lot or Improvements, to disapprove of the inclusion by the Borrower of such Lot or Improvements in the Borrowing Base. Upon such disapproval, such Lot or Improvement shall be ineligible for inclusion in the Borrowing Base and shall not be used in the calculation of the Borrowing Base Value. In deciding whether to disapprove of the inclusion of any Lot or Improvements in the Borrowing Base, the Bank may consider, among other matters, (i) the condition, financial or otherwise, existing or potential, of the Borrower, (ii) the existing or potential condition of the single family house construction business generally, (iii) the type of floor plan or specifications to which the Improvements are to be built and (iv) the residential subdivision in which the Lot is to be located. The rights of the Bank under this Section 5.3 are in addition to any other rights the Bank may have under this Agreement or any other Security Instrument to not make advances under the Revolving Line of Credit, including, without limitation, any right that may exist as a result of the Borrower's failure to comply with the provisions of Section 5.2 hereof.

Guidance Line. Notwithstanding anything contained in this Agreement, the Note or any other Security Instrument to the contrary, the Bank, in its sole discretion, shall have the right, prior to the initial advance under the Revolving Line of Credit with respect to any Lot or Improvements, to disapprove of the inclusion by the Borrower Company of such Lot or Improvements in the Borrowing Base. Upon such disapproval, such Lot or Improvement shall be ineligible for inclusion in the Borrowing Base and shall not be used in the calculation of the Borrowing Base Value. In deciding whether to disapprove of the inclusion of any Lot or Improvements in the Borrowing Base, the Bank may consider, among other matters, (i) the condition, financial or otherwise, existing or potential, of the BorrowerCompany, (ii) the existing or potential condition of the single family house construction business generally, (iii) the type of floor plan or specifications to which the Improvements are to be built and (iv) the residential subdivision in which the Lot is to be located. The rights of the Bank under this Section 5.3 are in addition to any other rights the Bank may have under this Agreement or any other Security Instrument to not make advances under the Revolving Line of Credit, including, without limitation, any right that may exist as a result of the BorrowerCompany's failure to comply with the provisions of Section 5.2 hereof.