Read the loan covenants into a compliance checklist

1 · Learn the move · Fact-check list

A land loan's covenants are not a building loan's. There is no rent to test, so the lender watches the land and the person holding it: liquidity, taxes paid on time, no cutting timber or changing a lease without consent, no rezoning application without consent, an appraisal the lender can order that can force a paydown, reports due on a schedule. Miss one and you can be in default on a loan you have never paid late. The checklist is built by quoting, not summarising: each covenant with its section, the test date as written, and one line saying what would breach it drawn only from the quote. Anything the excerpt refers to but does not contain - a defined term, a cure period, a schedule - reads [NEEDS: ...]. Then the part holders skip: run your own plans for the tract against the covenants, so the lease renewal and the rezoning application get cleared before they happen. Whether anything is permitted or breached is counsel's call, never the checklist's.

Build my covenant checklist from the loan agreement sections below. For each covenant: quote it with its section, the test date or deadline as written, and WHAT WOULD BREACH IT in one line drawn only from the quote. Defined terms, cure periods and schedules not in the excerpt read [NEEDS: ...]. Then list which covenants each of my plans touches, marked FOR COUNSEL. Do not interpret and do not say whether I am compliant. [sections] [my plans]