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2008-08-05 LOC Affidavit DrawCITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA AFFIDAVIT OF LARRY KRUSE IN SUPPORT OF DRAW UNDER LETTER OF CREDIT NO.8815-0707-DI, DATED JULY 99 2007 OF CONTRACTORS CAPITAL CORPORATION State of Minnesota ) ss. County of Wright ) I, Larry Kruse, being the duly appointed City Administrator for the City of Albertville, Wright County, Minnesota, Beneficiary of Irrevocable Letter of Credit No. 8815-0707-DI dated July 9, 2007 of Contractors Capital Corporation, pursuant to the authority granted by the City Council of the City of Albertville, being first duly sworn, deposes and says that Hunters Development, LLC, is in default of the Developer's Agreement for Hunters Pass Estates dated August 15, 2005 in that Hunters Development, LLC has failed to renew the letter of credit prior to 45 days before its expiration pursuant to paragraph 51. of the Developer's Agreement. The City shall use said funds in the amount of $195,993.77 obtained from the Letter of Credit to preserve its security as the letter of credit is set to expire on August 12, 2008. The City may use these funds to complete portions of the obligations of Hunters Development, LLC pursuant to the terms of the Developer's Agreement. WITNESS my hand as City Administrator for the City of Albertville, Wright County, Minnesota this 5ffi day of August, 2008. Larry , City Administrator Subscribed and sworn to before me this 5t` day of August, 2008. Notary Public TINA LOUISE L7ANNES RA14 4 W 0 L PT I N e 4 d i t 9 1--4 V. A M, NOTARY PUCLIC•MINNESOTA `y C°err ri, Exp, inn. 1, 2X9 Date: August 5, 2008 USD $195,993.77 CUSTOMER DRAFT At sight, pay to the order of City of Albertville the amount of $195,993.77 U.S. Dollars Drawn under Letter of Credit Number 8815-0707-DI dated July 9, 2007 of Contractors Capital Corporation. TO: City of Albertville Larry Kruse, City Administrator 5959 Main Avenue NE P.O. Box Albertville, MN 55301 Authorized Signature, Drawer (endorse on reverse) RECEIPT OF LETTER OF CREDIT MATERIALS FROM TINA LANNES, FINANCE DIRECTOR FOR THE CITY OF ALBERTVILLE Received of Tina Lannes, Finance Director for the City of Albertville, the following original documents: 1. Irrevocable Letter of Credit No. 8815-0707-DI dated July 9, 2007 issued by Contractor Capital Corporation on account of Hunters Development, LLC; 2. Affidavit of Larry Kruse, City Administrator for the City of Albertville in support of draw on Letter of Credit No. 8815-0707-DI dated July 9, 2007; 3. Site Draft of the City of Albertville in the amount of $195,993.77; and 4. Letter from Larry Kruse requesting Contractor Capital Corporation to disburse $195,933.77 to the City of Albertville as a draw on Letter of Credit No. 8815-0707-DI dated July 9, 2007. August 5, 2008 By: _ Title: Contractor Capital Corporation RECEIPT OF LETTER OF CREDIT MATERIALS FROM TINA LANNES, FINANCE DIRECTOR FOR THE CITY OF ALBERTVILLE Received of Tina Lannes, Finance Director for the City of Albertville, the following original documents: I. Irrevocable Letter of Credit No. 8815-0707-DI dated July 9, 2007 issued by Contractor Capital Corporation on account of Hunters Development, LLC; 2. Affidavit of Larry Kruse, City Administrator for the City of Albertville in support of draw on Letter of Credit No. 8815-0707-DI dated July 9, 2007; 3. Site Draft of the City of Albertville in the amount of $195,993.77; and 4. Letter from Larry Kruse requesting Contractor Capital Corporation to disburse $195,933.77 to the City of Albertville as a draw on Letter of Credit No. 8815-0707-DI dated July 9, 2007. August 5, 2008 August 5, 2008 VIA HAND DELIVERY Contractors Capital Corporation 1428 5t' Avenue Anoka, MN 55303 Re: City of Albertville; Hunters Development. Dear Sirs: Accompanying this letter are the following original documents: 1. the original Letter of Credit No. 8815-0707-DI dated July 9, 2007 issued by Contractors Capital Corporation on account of Hunters Development, LLC; 2. Affidavit of Larry Kruse; 3. Site Draft of City of Albertville in the amount of $195,993.77; and 4. Receipt of Letter of Credit Materials from Larry Kruse, City Administrator for the City of Albertville. Please disburse $195,993.77 as a draw on the letter of credit to City of Albertville. Thank you. Sincerely, Larry se City of Albertville