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Bonds (RosePointe I Project), Series 1998B (the "Series 1998C Bonds") (together, the Series 1998A Bonds, the Series 1998B Bonds and the Series 1998C Bonds are referred to herein as the "Bonds"). The proceeds of the Bonds will finance a Mortgage Loan and a Subordinate Loan secured by the Project and the proceeds ofthe Mortgage Loan and the Subordinate Loan will be used, with other available funds of the Borrower, to refund and retire the Prior Bonds, thereby achieving interest rate savings. The Series 1998A Bonds and Series 1998B Bonds will be secured by a fully modified mortgage-backed security issued by the lender referenced in the Loan Agreement and guaranteed as to timely payment of principal and interest by the Government National Mortgage Association. The payment of the Series 1998C Bonds will be secured by, among other things, the issuance of a note by the members of the Borrower pursuant to the Subordinate Loan Agreement, a second mortgage on the Project and by a guaranty to be executed by Curtis Squire, Inc., a Minnesota corporation. It is intended that interest on the Series 1998A Bonds and Series 1998C Bonds be excluded from gross income of the holders thereof for federal income tax purposes, but that interest on the Series 1998B Bonds be includable in gross income for federal income tax purposes. A public hearing on the issuance of the Bonds was held on August 24, 1998 in accordance with the provisions of Section 147(f) of the Internal Revenue Code of 1986, as amended. 1.02. Documentation. Drafts of the following documents relating to the Bonds (the "Bond Documents") have been prepared and submitted to this Council and are hereby directed to be filed in the office of the City Manager: (a) a Loan Agreement (the "Loan Agreement"), to be dated as of September 1, 1998, proposed to be made and entered into between the City, the Borrower, Reilly Mortgage Group, Inc. , as lender, and US Bank Trust, National Association, St. Paul, Minnesota as trustee (the "Trustee"); (b) an Indenture of Trust (the "Indenture"), to be dated as of September 1, 1998, proposed to be made and entered into between the City and the Trustee; (c) a Subordinated Loan Agreement, to be dated as of September 1, 1998, proposed to be made and entered into between the City, the Borrower, Myron Kunin and Curtis Squire, Inc., the members of the Borrower, and the Trustee; (d) a Bond Purchase Agreement (the "Bond Purchase Agreement"), proposed to be made and entered into by Miller & Schroeder Financial, Inc. (the "Purchaser"), the City and the Borrower; -2-