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a 6-bed facility located at 2134 Marshall Avenue in Saint Paul, Minnesota, including related vehicles and furnishings (the “Saint Paul Project”), (ii) the acquisition and renovation of a 6-bed facility located at 2209 West 91-1/2 Street in Bloomington, Minnesota, including related vehicles and furnishings (the “Bloomington Project”), and (iii) the improvement and equipping of a 4-bed facility located at 2949 Woodbridge Street in Roseville, Minnesota, including related vehicles and furnishings (the “Roseville Project,” and together with the Bloomington Project and the Saint Paul Project, the “Project”), which facilities are owned and operated by the Borrower. (3)As required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), the City held a public hearing on the issuance of one or more revenue notes to finance the Project. (4)On the basis of information available to the City it appeared and the City found in the Note Resolution that the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2(d) of Section 469.153 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing was a substantial inducement to the Borrower to undertake the Project; and that the effect of the Project, if undertaken, would be to provide necessary health care facilities so that adequate health care services are available to residents of the state at reasonable cost, to provide the range of services and employment opportunities required by the population, and to help prevent the movement of talented and educated persons out of the state and to areas within the state where their services may not be as effectively used. (5)The City issued the Health Care Facilities Revenue Note, Series 2006 (Wingspan Project) dated July 31, 2006 (the “Note”) pursuant to the Act and sold the Note to Anchor Bank Heritage, N.A., now known as Anchor Bank, N.A., a national banking association (the “Lender”). (6)Pursuant to a Loan Agreement (the “Loan Agreement”) dated July 31, 2006 between the City and the Borrower, the Borrower agreed to repay the Note in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the expenditure of proceeds of the Note, the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City, the Borrower, and the Lender deem necessary or desirable for the financing of the Project. (7)Pursuant to a Pledge Agreement (the “Pledge Agreement”) dated July 31, 2006 between the City and the Lender, the City pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). (8)In order to secure its obligations under the Loan Agreement, the Borrower mortgaged and granted a security interest in certain of its real and personal property pursuant to a Mortgage, Security Agreement and Fixture Financing Statement dated July 31, 2006 in favor of the Lender. 2 4914096v1