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<DIV>Greetings,</DIV>
<DIV> </DIV>
<DIV>I spoke with Tim Dargan at Federal Savings Bank this morning. He clarified
some of the question I raised regarding the loan offer. On page 1: loan increase
is to be what the BOD decides is appropriate not necessarily what the offer
shows. On page 2 : <STRONG>Prepayment penalty : </STRONG>This would apply only
on an early payoff. For example a re-finance with another bank. Pay-downs of
principle or the entire loan by the Club from our internal resources would not
trigger the penalty.</DIV>
<DIV> </DIV>
<DIV>The original mortgage did not have title insurance because the Bank did not
require it. Title insurance is now required by the Bank.</DIV>
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<DIV>Total cost of the transaction:</DIV>
<DIV> a. Flood Certificate:
$22.00</DIV>
<DIV> b. Attorney\u2019s
Fees $648.75 (includes title &
title insurance)</DIV>
<DIV> c. Documentation:
$500.00</DIV>
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align=left>
Total: $1,170.75</DIV>
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<DIV align=left>Since The Club already has paid a deposit to Custom Floats of
$17,000 + I suggest we only borrow that amount necessary to satisfy the
remainder of the contractual amount. This would be approx. $35,000 +or-.
John you can remind us of the exact dollar figures, thanks. Also we should
decide whether to pay the closing cost out of current funds or add these to loan
amount. (which, of course incurs more interest!!)</DIV>
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<DIV align=left>Your comments, please,</DIV>
<DIV align=left> </DIV>
<DIV align=left>Regards,</DIV>
<DIV align=left> </DIV>
<DIV align=left>Greg</DIV>
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