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EXHIBIT 4.2

December 31, 2003

Brookfield Homes Corporation
12865 Pointe Del Mar, Suite 200
Del Mar, CA 92014

Dear Sirs:

The following terms will highlight the conditions under which Brookfield Homes
Corporation may from time to time deposit funds with Trilon International Inc.

|                    |  |                                                                                                                                                                                                                                                                                                             
|------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|DEPOSIT
ENTITY:     |  | Trilon International Inc. will open appropriate
accounts for Brookfield Homes Corporation to receive
funds.                                                                                                                                                                                                 
|                    |  |                                                                                                                                                                                                                                                                                                             
|CURRENCY:           |  | Deposits will be made in United States dollars.                                                                                                                                                                                                                                                             
|                    |  |                                                                                                                                                                                                                                                                                                             
|MATURITYDATE:       |  | This will be a demand deposit facility.                                                                                                                                                                                                                                                                     
|                    |  |                                                                                                                                                                                                                                                                                                             
|INTERESTRATES:      |  | Deposit amounts will earn interest as follows:                                                                                                                                                                                                                                                              
|                    |  | 3 Month Libor + 50 basis points                                                                                                                                                                                                                                                                             
|                    |  |                                                                                                                                                                                                                                                                                                             
|DEPOSITS:           |  | Notice of any deposit amounts should be made One
business day prior to deposit.                                                                                                                                                                                                                             
|                    |  |                                                                                                                                                                                                                                                                                                             
|WITHDRAWAL
OFFUNDS: |  | Brookfield Homes Corporation will notify Trilon
International Inc. of deposit withdraws in accordance
with the following notice timelines:4 USD10 million or greater: One business day prior to
withdrawal of funds.4 Less than USD10 million: Notice must be received by
10am EST on the day of withdrawal.

For your information enclosed is a copy of our most recent audited financial
statements.

Yours very truly,

| |  |                                    
| |  | -----------------------------------
| |  | Trilon International Inc.          
| |  |                                    
| |  |                                    
| |  | /s/ GEORGE GLEADALL
George Gleadall
| |  |                                    
| |  |                                    
| |  | /s/ ANDRE PROCOPE
Andre Procope    

Agreed and Accepted

Brookfield Homes Corporation

/s/ IAN G. COCKWELL
Ian G. Cockwell

/s/ PAUL G. KERRIGAN
Paul G. Kerrigan