Harbor Custom Development : Accelaration/Increase of Financial Obligation - Form 8-K
November 27, 2023 at 05:24 pm EST
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Item 2.04. Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On November 20, 2023, Harbor Custom Development, Inc., a Washington corporation (the "Company"), failed to make the payment of $707,790.41 of principal required to be made on that date pursuant to the Company's Loan Agreement with BankUnited, N.A. (the "Lender"), dated March 7, 2022 (the "Loan") and the Amendment to the Loan Agreement, dated February 22, 2023 (the "Amendment"). Under the Amendment, the Company covenanted that it would pay the amount of $634,666 on the 20th of each month, in addition to remitting to the Lender 25% of the net proceeds from all asset sales, public offerings, private equity recaptures, and any capital raises. Under the Loan, a failure to make a payment of principal is defined as an Event of Default. For such an Event of Default, the Lender may accelerate all amounts due under the Loan.
To date, the Lender has not provided the Company with the required written notice of Lender's intention to accelerate payment of all amounts due under the Loan. The Company will update this disclosure if and when written notice of Lender's intention to accelerate payments of all amounts due under the Loan is received.
Harbor Custom Development Inc. published this content on 27 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2023 22:23:31 UTC.
Harbor Custom Development, Inc. is a real estate development company. The Company is engaged in the land development cycle, including land acquisition, entitlements, development, construction of project infrastructure, single and multi-family vertical construction, marketing, and sales of various residential projects in Washington, California, Texas, and Florida. The Company operates through five segments: Homes, Developed lots, Entitled land, Multi-family, and Fee Build. It also provides services as fee-build revenues to construct the required infrastructure so that houses can be developed on the lots. Its multi-family construction offers comparable finishes to a new construction home, featuring quartz countertops, stainless steel kitchen appliances, an in-unit washer and dryer, and premium flooring. It owns or controls approximately 15 communities in Washington, Texas, California, and Florida, containing approximately 517 units or lots in various stages of development.
HARBOR CUSTOM DEVELOPMENT, INC. 
