Notice of Mortgage Foreclosure sale-2010

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This Note is subject to optional or mandatory redemption at a redemption price equal to the principal amount of the Note to be redeemed,plus accrued interest to the date of redemption, as follows: (a) This Note is subject to mandatory redemption in whole, at the option of the Holder, following an "Event of DefaulY' under the Loan Agreement, dated the date hereof(the "L,aan Agreement"), between the Issuer and Hill School of Minnesota, Inc. (the"Boaower"). (b) This Note is subject to optional redemption at the election of the Borrower,in whole not in part,on any date upon thirty(30)days' notice to the Holder. (c) This Note is subject to mandatory redemption in whole, at the option of the Borrower or the Holder, following a Determination of Taxability, on any date upon thirty(30)days' notice to the Issuer and the Borrowcr. This Note is issued under a resolution of the Issuer's governing body adopted on May 8, 2006(the"Resolution"). This Note is issued by the Issuer in the principal sum of 5480,000 for the purpose of making the Loan of the proc,eeds thereof to the Borrower undec the provisions of the Loan Agreement. Under the provisions of the Loan Agreement, the Borrower has agreed to use the prooeeds of the loan to pay the costs related to improvements to an educational facility located at 2180 North Shore Drive in the City of Orono, Minnesota and to refinance existing debt of the � Botrower (the "ProjecY'). Under the Loan Agreement, the Boirower has agrced to repay the Loan, together with interest thereon, in installments scheduled to be sufficient to pay the principal of and interest on this Note,when due. As security for the obligations of the Borrower under the Loan Agreement, the Borrower has agueed to oonvey a lien on the Pmject to be evidenced by the Mortgage (as defined in the Loan Agreement). The Issuer has also assigned and pledged to the Lender the Issuer's interest in the Loan Agreement The Issuer makes no repr�sentations as to the sufficiency of the amounts, if any, that may be realized from the collateral in order to pay the principal of or the interest on this Note in the case of a default by the Borrower under the Loan Agreement Reference is hereby made ta the Loan Agreement for a description of the agreements and covenants of the Borrower contained therein. This Note is issued pursuant to and in full compliance with the Constitution and State of � Minnesota, particulazly Minnesota Statutes, Sections 469.152 to 469.165, as amended, and ' pursuant to the Resolution. This Note is not a general obligation of the Issuer, and the taxing power or general assets or revenues of the Lssuer are not pledged to the payment of this Note or the interest thereon. This Note is a special limited obligation of the Issuer. Principal of and interest on this Note is payable solely out of the revenues derived from the Loan Agreement and enforcement of the Mortgage. The State of Minnesota, the County of Hennepin and the Issuer shall not in any event be liable for the payment of the principal of or interest on this Note or for. the perfonnance of any pledge, mortgage, obligation or agreement of any kind whatsoever that may be undertaken by the Issuer. Neither this Note nor any of the agreements or obligations of the Issuer shall be construed to constitute an indebtedness of the State of Minnesota,the County � of Hennepin or the Issuer within the meaning of any constitutional or statutory provisions