Definitions of Value

1. Cost of Reproduction New (CRN) - is the amount that is required to reproduce property in like kind and materials in accordance with current market prices for materials, labour and manufactured equipment, contractor's overhead, profit and fees, but without provision for overtime or bonuses for labour and premiums for materials.

Note: 'Cost of Reproduction New' is an appraisal term is synonymous with the insurance term ' Replacement Cost'.

2. Cost of Reproduction New Less Exclusions (CRN(X)) - is the amount required to reproduce property in like kind and quality as defined above less insurance exclusions as identified within the insurance policy.

3. Cost of Reproduction New Less Depreciation (CRNLD) - is the cost of reproduction new, as defined, less an allowance for accrued depreciation
as evidenced by observed condition in comparison with new units of like kind, with consideration of physical deterioration and functional and economic factors deemed relevant for insurance purposes.

Note: 'Cost of Reproduction New Less Depreciation', another appraisal term, may or may not be synonymous with the insurance term 'Actual Cash Value', depending on the definition of same within the insurance policy.

4. Cost of Reproduction New Less Depreciation and Exclusions (CRNLD(X)) - is the amount required to reproduce the property in like kind and quality as defined above, less depreciation, less insurance exclusions, as defined within the insurance policy.

5. Cost of Replacement New - is the current cost of a similar new property having the nearest equivalent utility as the property being appraised.

6. Fair Market Value (FMV) - is the amount expressed in terms of money, as of a certain date, that may reasonably be expected for property in exchange between a willing buyer and a willing seller with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts.

7. Market Value - Continued Use (MV-CU) - is the amount expressed in terms of money, as of a certain date, that may be reasonably expected to exchange between a willing buyer and a willing seller, neither under compulsion to buy or sell and both fully aware of all relevant facts, with equity to both, and with buyer and seller contemplating the retention of the assets at their present location for continuation of the current operations as part of the existing enterprise, assuming earnings support the value reported.

8. Fair Market Value (Installed) - is the estimated amount of an installed property expressed in terms of money that may be reasonably expected in exchange between a willing buyer and a willing seller with equity to both, neither under compulsion to buy or sell and both fully aware of the relevant facts.

9. Fair Market Value (Removal) - is the estimated amount expressed in terms of money that may reasonably be expected for an item of property between a willing buyer and a willing seller with equity to both, neither under compulsion to buy or sell and both fully aware of all relevant facts, considering removal of the property to another location.

10. Liquidation Value in Place (LVP) - is the estimated gross amount expressed in terms of money which is projected to be obtainable from a failed facility assuming that the entire facility would be sold intact within a limited time to complete the sale.

11. Orderly Liquidation Value (OLV) - is the estimated gross amount expressed in terms of money which could typically realized from a sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an is - where is basis.

12. Forced Liquidation Value - is the estimated gross amount expressed in terms of money which could be typically realized from a property advertised and conducted public sale with the seller being compelled to sell with a sense of immediacy on an as is - where is basis.

13. Salvage Value - is the amount expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere.

14. Scrap Value - is defined as the amount expressed in terms of money that may be expected for the property if it were sold for its material content, not for a productive use.