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EXHIBIT
7-A |
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Comparison of
Proposals to Provide Letter of Credit |
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Credit Line |
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Principal |
Interest |
Commitment |
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Financial Institution |
Amount |
Interest Rate |
Term |
Payment |
Payments |
Fees |
Expenses |
Collateral |
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Bank of America |
Up to $2,500,000 |
Wall St. Prime Rate + .25% or |
1 year |
Due at Maturity |
Monthly |
0.50% |
Est. $1000 |
Full Faith & |
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1 month LIBOR Rate + 3.0% |
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to $2,000 [1] |
Credit of MPWMD |
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Fremont Bank |
$2,000,000 |
Wall St. Prime Rate + .50% |
1 year |
Due at Maturity |
Monthly |
0.50% |
$1,000 [2] |
UCC-1 Blanket |
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with a floor rate of 5% |
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Filing on all Assets |
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[1] Bank to be reimbursed for out of pocket
cost of outside counsel review of any legal opinions or special
documentation. |
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[2] Fees for documentation and processing |
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Note: All commitments will be subject to the
District maintaining its primary operating accounts with the bank, and
meeting various |
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conditions and warranties. Additionally Fremont bank requires average
minimum balance of $500,000 in depository balances. |
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