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<br />e R"S DAKOTA BANK <br /> <br />MEMBER FDIC <br /> <br />Main Office I 060 DAKOTA DRIVE. MENDOTA HE1Gt1TS. MN 55120A 113 . (651) 452-1 :no . FAX (651) 452-4651 <br />February 14, 2002 <br /> <br />Joe Lynch <br />City Administrator <br />City of Arden Hills <br />1245 West highway 96 <br />Arden Hills, MN 55112 <br /> <br /> <br />& 0 2002 <br /> <br />Re City of Arden Hills, Minnesota, $2,156,800 Health Care Facility Revenue <br />Refunding Note, Series 200lA (Presbyterian Homes Bloomington Care Center, <br />Inc. Project), $2,850,000 Housing Facility Revenue Note, Series 2001B <br />(Presbyterian Homes Bloomington Care Center, Inc. Project) <br /> <br />Dear Mr. Lynch: <br /> <br />e <br /> <br />It has come to our attention that the above-referenced Promissory Notes (the "Notes") <br />executed by the City of Arden Hills (the "City") in connection with the financing transaction <br />which closed December 13, 2001 (the "Financing"). did not provide for a late payment fee on <br />amounts due under the Notes. Dakota Bank's standard policy with respect to loans is to charge a <br />late payment fee of 5% of the amount of any payment not received by within 10 days of its <br />scheduled due date. Similar late payment fees have been a part of past loans Dakota Bank has <br />made to related entities of the Borrower, and the application of late payment fees was discussed <br />and verbally agreed upon prior to the completion of this Financing. <br /> <br />In connection with the Financing, bond counsel, Briggs and Morgan, prepared the Notes, <br />which, through inadvertent oversight by various parties involved in the Financing, did not <br />specify application of late payment fees. The Borrower and Dakota Bank ask that the City agree <br />to amend the Notes to more accurately reflect the understanding between the parties by inserting <br />the following language into Section 3 of each of the Notes, immediately following the last <br />sentence thereof: <br /> <br />Any payment required under this Note not received by Lender within ten (10) <br />days of its scheduled due date shall bear a late charge of five percent (5%) of the <br />amouDt of such payment. The late charge (also referred to herein as a "service <br />charge") shall apply individually to all payments past due and shall be used to <br />defray the costs of Lender incident to collecting such late payment. The late <br />charge shall be in addition to the principal and interest payable hereunder. <br />Nothing herein shall be deemed to excuse a late payment or be deemed a waiver <br />of any other rights Lender may have, including the right to declare the entire <br />unpaid principal and interest immediately due and payable. <br />. DOWNTOWN ST. PAUL OfFICE E:AljA,!'j OrnCE <br />] NORTH ROBERT STREET SIT. 2 15 2\ 09 CLIFf ROAD <br />ST. PAUL. MN 55101-2008 EAGAN, MN 55122-3001 <br />(651) 665-9300 (651) 454-4840 <br />FAX (651) 665-9308 FAX (551) 454"1354 <br /> <br />HIGHLAND Ort1CIC <br /> <br />2.310 WEST SEVENTH STREET <br />ST. PAUL, MN 55] 16-2824 <br />(651) 696-0255 <br />FAX (65]) 696-9263 <br /> <br />IJWf:R GROVE "r:I(;"T5 OFFICE <br />7055 CAHilL AvE. <br />INVEF\ GROVE HEIGIiT:5, MN 55076-250 I <br />(651) 455-2900 <br />FAX (651 ) 455-8955 <br /> <br />MmWAY Ofl'1~.t: <br /> <br />PtlIUf;I'IQf'f'ICf; <br />1425 MARYL,4.ND Av~. E. <br />ST. PAUL. MN 55106-2800 <br />(65]) 774.9531 <br />FAX (651) 774-9536 <br /> <br />] 581 U['.IVERSITY AVE. W. <br />ST. PAUL. MN 55l 04-3820 <br />(65]) 9] 7-0042 <br />FAX (651) 917.0052 <br />