<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 14 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>I think it\u2019s reasonable to borrow only the amount necessary to pay off Custom float if using the 17K we\u2019ve already put down will not affect our operations. The fees, in my opinion, should be paid out of operating expenses to reduce interest. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Needless to say, we should execute this instrument as late as possible to meet the conditions of payment with Custom Float thereby reducing our interest a bit.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Dan<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> board-bounces@portsmouthyc.org [mailto:board-bounces@portsmouthyc.org] <b>On Behalf Of </b>Greg Gebow<br><b>Sent:</b> Monday, November 22, 2010 12:46 PM<br><b>To:</b> PYC BOD<br><b>Subject:</b> [Board] Mortgage Modification<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>Greetings,<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>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><span style='font-family:"Calibri","sans-serif"'>Prepayment penalty : </span></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.<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>The original mortgage did not have title insurance because the Bank did not require it. Title insurance is now required by the Bank.<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>Total cost of the transaction:<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> a. Flood Certificate: $22.00<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> b. Attorney\u2019s Fees $648.75 (includes title & title insurance)<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> c. Documentation: $500.00<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> Total: $1,170.75<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>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!!)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>Your comments, please,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>Regards,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'>Greg<o:p></o:p></span></p><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:black'> <o:p></o:p></span></p></div></div></div></div></body></html>