The Golden Rain Foundation of Laguna Woods is obtaining a $10 million real estate loan from Bank of America. The loan will be used to fund capital improvements and is secured by a second deed of trust on an existing property and a cash collateral account. The loan has a 15-year term with a fixed interest rate of 4.27% and equal monthly principal and interest payments. Proceeds can only be used for approved capital projects and the loan has standard financial covenants. There are no prepayment penalties except potential gains or losses from interest rate changes. The loan documents were reviewed and approved by GRF management and legal counsel.

1. Recreation Master Plan
$10,000,000 Real Estate Loan
Lender:
Bank of America
Borrower:
Golden Rain Foundation of Laguna Woods
Guarantor:
Golden Rain Foundation of Laguna Woods,
as Trustee of the Golden Rain Foundation of Laguna
Woods Trust

2. Fees and Expenses
$3,575.
$40,000.
$12.
$43,587.
$9,387.
$24,250.
Appraisal Fee
Loan Fee
Flood Certificate
Bank Transaction Costs
Escrow Fees
Legal Fees and Expenses
$77,212.
TOTAL

3. Collateral
Property (2nd deed of trust)
24351 El Toro Road, Laguna Hills, California
(existing debt $3.1 million - 1st deed of trust)
Insufficient equity to secure 100% of loan
Cash Collateral Account
$2,961,782.22 withheld from loan amount and
added to existing B of A time deposits account to
meet minimum requirement of $4,447,312.97 to
secure 100% of the loan. This balance may be
reduced in the future as principal is paid or if GRF
gets a higher appraisal on the property.

4. Interest Rates
a) B of A LIBOR Rate swapped for fixed
rate through an ISDA Agreement
b) 2.67% ISDA Fixed Rate
c) 1.60% B of A Applicable Margin
(Principal Depository Rate)
4.27% Fixed Interest Rate
LIBOR Rate - British Banker’s Association Floating Rate
ISDA – International Swaps and Derivatives Assoc. Inc.

5. Repayment Terms
• September 1, 2013 interest and principal
payments. (2.67% from 8/5/13 and 1.60%
from 8/21/13)
• Repay principal in equal installments
($55,555.56)
• 15 year loan fully amortizing
• 9/1/2013 – 8/1/2028

6. INT @ 4.27%
PRINCIPAL
PAYMENT
PRINCIPAL BALANCE
MONTH
YEAR
PAYMENT
ACCUMULATED INT
10,000,000.00
9,944,444.445
SEPTEMBER
OCTOBER
2013
2013
$
$
22,962.38
35,385.65
55,555.555
55,555.555
$
78,517.93
$
90,941.20
$
$
9,888,888.890
NOVEMBER
2013
$
35,187.96
55,555.555
$
90,743.52
$
93,535.99
9,833,333.335
DECEMBER
2013
$
34,990.28
55,555.555
$
90,545.83
$
128,526.27
9,777,777.780
JANUARY
2014
$
34,792.59
55,555.555
$
90,348.15
$
163,318.86
9,722,222.225
FEBRUARY
2014
$
34,594.91
55,555.555
$
90,150.46
$
197,913.77
9,666,666.670
MARCH
2014
$
34,397.22
55,555.555
$
89,952.78
$
232,310.99
9,611,111.115
APRIL
2014
$
34,199.54
55,555.555
$
89,755.09
$
266,510.53
9,555,555.560
MAY
2014
$
34,001.85
55,555.555
$
89,557.41
$
300,512.38
9,500,000.005
JUNE
2014
$
33,804.17
55,555.555
$
89,359.72
$
334,316.55
9,444,444.450
JULY
2014
$
33,606.48
55,555.555
$
89,162.04
$
367,923.03
9,388,888.895
AUGUST
2014
$
33,408.80
55,555.555
$
88,964.35
$
401,331.83
9,333,333.340
SEPTEMBER
2014
$
33,211.11
55,555.555
$
88,766.67
$
434,542.94
9,277,777.785
OCTOBER
2014
$
33,013.43
55,555.555
$
88,568.98
$
467,556.37
9,222,222.230
NOVEMBER
2014
$
32,815.74
55,555.555
$
88,371.30
$
500,372.11
9,166,666.675
DECEMBER
2014
$
32,618.06
55,555.555
$
88,173.61
$
532,990.17
22,962.38
58,348.03

7. Covenants
To use the Loan proceeds only for
payment of costs and expenses
incurred in connection with capital
improvements to the Property
and/or other real property owned
by Borrower and/or Guarantor.
Financial Covenants are essentially
the same as the existing loan so
there is no impact on GRF.

8. Prepayment
• No penalty on the underlying Agreement
if the prepayment is made on a Libor
Rate Reset Date. (12 days per year)
• No penalty on ISDA Agreement but as
market interest rates go up or down
prepayment may result in a loss or gain
for GRF.

9. Signatures
Golden Rain Foundation of Laguna Woods,
a California non-profit mutual benefit corporation
Lynne C. Dvorak, President
Marvin Rosenhaft, VP GRF
Loan Documents were reviewed by:
– An independent 3rd party for B of A (as required by bank
regulations)
– GRF Corporate Attorney