Document:

Exhibit 4.1
                            COMMITMENT AND ACCEPTANCE

         This Commitment and Acceptance (this "Commitment and Acceptance") dated
as of August 22, 2000, is entered into among the parties listed on the signature
pages hereof.  Capitalized  terms used herein and not otherwise  defined  herein
shall have the meanings  attributed to them in the Credit  Agreement (as defined
below).

                             PRELIMINARY STATEMENTS

         Reference is made to that certain Amended and Restated Credit Agreement
dated as of October 8, 1999,  by and among M.D.C.  Holdings,  Inc., as Borrower,
Bank One, NA, as  Administrative  Agent,  and the Banks that are parties thereto
(as the  same  may  from  time to time be  amended,  modified,  supplemented  or
restated,  in whole or in part  and  without  limitation  as to  amount,  terms,
conditions or covenants, the "Credit Agreement").

         Pursuant  to  Section  2.5(d) of the  Credit  Agreement,  Borrower  has
requested  an increase  in the  Aggregate  Commitment  from  $350,000,000.00  to
$375,000,000.00.  Such  increase  in  the  Aggregate  Commitment  is  to  become
effective on August 22, 2000 (the  "Increase  Date").  In  connection  with such
requested increase in the Aggregate Commitment, Borrower,  Administrative Agent,
and California Bank & Trust, a California  banking  corporation  (the "Accepting
Bank") hereby agree as follows:

         1.  ACCEPTING  BANK'S  COMMITMENT.  Effective as of the Increase  Date,
Accepting  Bank shall become a party to the Credit  Agreement  as a Bank,  shall
have all of the rights and obligations of a Bank  thereunder,  shall agree to be
bound by the terms and provisions  thereof and shall thereupon have a Commitment
under and for purposes of the Credit  Agreement in an amount equal to the amount
set forth opposite its name on the signature page hereof..

         2. REPRESENTATIONS AND AGREEMENTS OF ACCEPTING BANK. Accepting Bank (i)
confirms  that it has  received a copy of the Credit  Agreement,  together  with
copies of the financial  statements  requested by Accepting  Bank and such other
documents and  information  as it has deemed  appropriate to make its own credit
analysis and decision to enter into this Commitment and Acceptance,  (ii) agrees
that it will,  independently and without reliance upon  Administrative  Agent or
any  Bank  and  based  on  such  documents  and  information  as it  shall  deem
appropriate at the time,  continue to make its own credit decisions in taking or
not taking  action  under the Loan  Documents,  (iii)  appoints  and  authorizes
Administrative  Agent to take such action as Administrative  Agent on its behalf
and to  exercise  such  powers  under the Loan  Documents  as are  delegated  to
Administrative  Agent by the terms  thereof,  together  with such  powers as are
reasonably  incidental  thereto,  (iv) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents
are  required  to be  performed  by it as a Bank,  (v) agrees  that its  payment
instructions  and  notice  instructions  are as set forth in the  attachment  to
Schedule 1, and (vi)  confirms that none of the funds,  monies,  assets or other
consideration  being used to make the commitment  and  acceptance  hereunder are
"plan assets" as defined under ERISA and that its rights, benefits and interests
in and under the Loan Documents will not be "plan assets" under ERISA.

<PAGE>

         3.  REPRESENTATION OF BORROWER. Borrower hereby represents and warrants
that as of the date hereof and as of the  Increase  Date,  no event or condition
shall  have  occurred  and then be  continuing  which  constitutes  a Default or
Unmatured Default.

         4.  GOVERNING LAW.  This Commitment and Acceptance shall be governed by
the internal law, and not the law of conflicts, of the State of Illinois.

         5.  NOTICES.  For the purpose of notices to be given under the Credit
Agreement, the address of Accepting Bank (until notice of a change is delivered)
shall be the address set forth in Schedule 1.

                                         2
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have executed this  Commitment
and  Acceptance  by their duly  authorized  officers  as of the date first above
written.

                                            BORROWER:

                                            M.D.C. HOLDINGS, INC.

                                            By: /s/ John J. Heaney
                                               --------------------------------
                                            Name:   John J. Heaney
                                                 ------------------------------
                                            Title: Senior Vice President and
                                                    Treasurer
                                                  -----------------------------

                                            ADMINISTRATIVE AGENT:

                                            BANK ONE, NA,
                                                as ADMINISTRATIVE AGENT

                                            By: /s/ Lynn M. Ciuchta
                                               --------------------------------
                                            Name:   Lynn M. Ciuchta
                                                 ------------------------------
                                            Title:  Vice President
                                                  -----------------------------

                                            ACCEPTING BANK:

$25,000,000.00                              CALIFORNIA BANK & TRUST, a
                                            California banking corporation

                                            By: /s/ Jennifer Pescatore
                                               --------------------------------
                                            Name:   Jennifer Pescatore
                                                 ------------------------------
                                            Title:  Vice President
                                                  -----------------------------

                                        3

<PAGE>

                                   SCHEDULE 1
                          to Commitment and Acceptance

1.       Attach Accepting Bank's Administrative Information Sheet, which must
         include its payment instructions and notice address.

                                        4Exhibit 4.2

                                 PROMISSORY NOTE

$25,000,000.00                                                   August 22, 2000
                                                               Chicago, Illinois

                  FOR  VALUE  RECEIVED,   M.D.C.  HOLDINGS,   INC.,  a  Delaware
corporation  ("Maker"),  hereby  promises  and  agrees  to pay to the  order  of
CALIFORNIA  BANK &  TRUST,  a  California  banking  corporation  ("Payee"),  the
principal sum of TWENTY-FIVE MILLION DOLLARS ($25,000,000.00) in lawful money of
the  United  States of  America,  or, if less than such  principal  amount,  the
aggregate  unpaid  principal  amount of all Advances  made to Maker by the Payee
pursuant to the Credit Agreement hereinafter  referenced.  Such payment shall be
made on the Facility Termination Date, as defined in the Credit Agreement.

                  Maker  shall pay  interest  from the date hereof on the unpaid
principal  amount of this Note from time to time  outstanding  during the period
from the date hereof until such  principal  amount is paid in full at the rates,
determined  in the  manner,  and on the dates or  occurrences  specified  in the
Credit Agreement (as hereinafter defined).

                  This  promissory  note is one of the Notes  referred to in the
Amended and Restated Credit  Agreement dated as of October 8, 1999, among Maker,
Bank One, NA, as  Administrative  Agent,  and the Banks that are parties thereto
(as the same may be amended,  modified,  replaced, or renewed from time to time,
the "Credit  Agreement") and is entitled to the benefits of the Credit Agreement
and the Loan Documents.  Capitalized terms used in this Note without  definition
shall  have  the same  meanings  as are  ascribed  to such  terms in the  Credit
Agreement.

                  Both  principal  and  interest  are payable to  Administrative
Agent for the account of Payee  pursuant  to the terms of the Credit  Agreement.
All Advances made by Payee pursuant to the Credit  Agreement and all payments of
the principal  amount of such Advances,  shall be endorsed by the holder of this
Note on the schedule attached hereto. Failure to record such Advances or payment
shall not  diminish  any  rights  of Payee or  relieve  Makers of any  liability
hereunder or under the Credit Agreement.  This Note is subject to prepayment and
its maturity is subject to acceleration, in each case upon the terms provided in
the Credit Agreement.

                  This Note may not be modified or discharged  orally, by course
of dealing  or  otherwise,  but only by a writing  duly  executed  by the holder
hereof.

                  In the event that any action, suit or proceeding is brought by
the holder hereof to collect this Note,  Maker agrees to pay and shall be liable
for  all  costs  and  expenses  of  collection,  including  without  limitation,
reasonable attorneys' fees and disbursements.

                  Maker and all sureties, guarantors and/or endorsers hereof (or
of any  obligation  hereunder) and  accommodation  parties hereon (all of which,
including  Maker,  are each  hereinafter  called a "Surety") each: (a) waive any
homestead or exemption laws and right  thereunder  affecting the full collection
of this Note; (b) waive any and all  formalities in connection with this Note to
the  maximum  extent  allowed by law,  including  (but not  limited  to) demand,
diligence, presentment for payment, protest and demand, and notice of extension,
dishonor,  protest,  demand and  nonpayment  of this Note;  and (c) consent that
Holder may extend the time of payment or  otherwise  modify the terms of payment
of any part or the whole of the

<PAGE>

debt  evidenced by this Note, at the request of any other person liable  hereon,
and such  consent  shall not alter nor  diminish  the  liability  of any  person
hereon.

                  In addition,  each Surety waives and agrees not to assert: (a)
any right to require the holder hereof to proceed  against any other Surety,  to
proceed against or exhaust any security for the Note, to pursue any other remedy
available to the holder hereof,  or to pursue any remedy in any particular order
or manner; (b) the benefit of any statute of limitations affecting its liability
hereunder or the enforcement  hereof; (c) the benefits of any legal or equitable
doctrine or principle of marshalling;  (d) notice of the existence,  creation or
incurring of new or additional  indebtedness  of Maker to the holder hereof;  or
(e) any defense arising by reason of any disability or other defense of Maker or
by reason of the  cessation  from any cause  whatsoever  (other than  payment in
full) of the liability of Maker for payment of this Note.  Until payment in full
of this  Note and the  holder  hereof  has no  obligation  to make  any  further
advances of the proceeds  hereof,  no Surety shall have any right of subrogation
and each hereby  waives any right to enforce any remedy which the holder  hereof
now has, or may hereafter  have,  against Maker or any other Surety,  and waives
any benefit of, and any right to  participate  in, any security now or hereafter
held by the holder hereof.

                  Maker  agrees that to the extent any Surety  makes any payment
to the holder hereof in connection with the indebtedness evidenced by this Note,
and all or any part of such payment is subsequently invalidated,  declared to be
fraudulent or preferential, set aside or required to be repaid by Holder or paid
over to a trustee,  receiver or any other entity,  whether under any  bankruptcy
act or otherwise (any such payment is hereinafter referred to as a "Preferential
Payment"),  then the  indebtedness  of Maker  under this Note shall  continue or
shall be  reinstated,  as the case may be, and, to the extent of such payment or
repayment by the holder hereof, the indebtedness  evidenced by this Note or part
thereof intended to be satisfied by such  Preferential  Payment shall be revived
and continued in full force and effect as if said  Preferential  Payment had not
been made.

                  This Note has been  delivered in the City of Chicago and State
of Illinois,  and shall be enforced  under and governed by the laws of the State
of Illinois  applicable to contracts  made and to be performed  entirely  within
said state, without references to any choice or conflicts of law principles.

                                          M.D.C. HOLDINGS, INC., a Delaware
                                          corporation

                                          By: /s/ John J. Heaney
                                              ---------------------------------
                                          Name:   John J. Heaney
                                          Title:  Senior Vice President

                                      2

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