What happens if we exceed the 30% of bank's capital?

Are you talking about your SLTV list exceeding 30% of capital?

If so...expect "increased scrutiny." It wasn't pleasant.

yes that is what i am talking about. i saw our report and it also includes loan to cost on it so that doesn't go into the loan to value correct?

When you do your loan to value calculation you should use the lower value of appraised value or purchase price. Does that help?

yes because that gets us below our limit. i was fixing to be in panic mode.

"yes because that gets us below our limit."

How does "that" get you below the limit? You don't get to use the lower ratio, you have to use the higher ratio calculated by either appraisal or purchase price??