The combined A&D Loan advances shall not exceed the sum of the “as-is” appraised value of the Land and the lesser of: (i) forty-five percent (45%) of the cost to acquire the Spring Ridge Lots, (ii) fifty-five percent (55%) of the gross retail value of the Spring Ridge Lots, or (iii) sixty-five percent (65%) of the “as-developed” appraised value of the finished Spring Ridge Lots on a discounted cash flow basis. In no event shall Lender advance more than $1,865,250 in the aggregate, on a non-revolving basis, for Land Acquisition Costs, Closing/Loan Costs, Architectural/Engineering, Hard Development Costs and Interest on the A&D Loan. Advances of Hard Development Costs shall be on a percentage of completion basis for the Hard Development Costs of the Spring Ridge Lots. Lender shall automatically advance funds out of the $120,000 Interest Reserve to cover the interest expense on the A&D Loan on a monthly basis when interest is due under the Note as to the A&D Loan. The funds set aside in the Interest Reserve shall not be advanced for any other purpose than to cover the actual interest expense accruing on the A&D Loan.