In other words, if the project had reached the stage where it had entered a bank lending the picture, the collateral would have been given.
- It should be noted that in real time the claim was not raised by the group committee. At the meeting of its members on May 29, 2014, Greeny City's request to some of the members of the group to complete the payment for the land component was discussed. Hence, it was clear that this was not completed, and the contractual date for depositing the funds had not yet arrived. It does not appear that the issue bothered any of the members of the class or the defendants. The reason for this was that the deposit was supposed to guarantee the construction costs and the date of receipt of Form 4. In circumstances in which the project did not actually reach construction, the defendants did not have to ensure that the funds were deposited in accordance with the undertaking.
- These are sufficient to reject this claim of the plaintiffs.
Advance payment of the completion of the land component of 10 housing units
- And now we come to discuss a case in which a number of group members paid payments to Greeny City even though the time had not come to pay them, at the request of the group's organizer, Ms. Or. The question is whether, once the defendants became aware of this, and they did not prevent the payment, should they be held responsible for the damage caused to those class members?
As noted, a relatively small number of the group members have reached an agreement whereby they will complete the transfer of payments in respect of the land component, only after a lending bank enters the project or from the date of signing the agreement with the executing contractor, whichever is earlier. This summary was anchored in the agreements they signed. And then Ms. Or turned to them and asked them to advance the payments so that they could "close faster" with the lending bank.
These requests were made in letters she sent in April 2015. The letter noted that the Bank of Israel had imposed restrictions that required an increase in the group's capital. It is also written (in paragraph 5) that "since the publication of the Bank of Israel's guidelines, and since you were supposed to complete, at the very least, the required and full equity as detailed in the sale agreement you signed, we have so far refrained from contacting you on the matter and have allowed you, on the basis and with financing on our behalf (of the missing financing), not to be required to do so." However, now, and in light of the demands, it was noted that the time had come to fill in the gaps (see, for example, Appendix 7 to Mr. Bentz's affidavit).