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WHEREAS, Eugene P. Donahue, an individual residing in
<br /> 111' the State of Minnesota (the "Borrower") , proposes to acquire
<br /> certain land within the corporate limits of the Issuer ,
<br /> construct thereon an addition to and the renovation of an
<br /> existing facility, acquire and install therein certain
<br /> equipment and make certain other improvements , including,
<br /> but not limited to , landscaping and the construction of a
<br /> parking facility (the "Project") , all to be owned by the
<br /> Borrower and leased to the United States Postal Service, a
<br /> United States ' government-owned corporation (the "Tenant") ,
<br /> for use as a United States Postal Service facility, and the
<br /> Issuer desires to finance said Project upon the terms and
<br /> conditions as required by the Act and as in the Agreement
<br /> (as hereinafter defined) set forth ; and
<br /> WHEREAS, the Issuer proposes to undertake said facili-
<br /> ties as a project authorized under the Act and to finance
<br /> the cost thereof by the issuance of revenue bonds of the
<br /> Issuer under the Indenture (as hereinafter defined) ; and
<br /> WHEREAS, the Issuer proposes to enter into an Indenture
<br /> of Trust , dated as of December 1, 1982 (the "Indenture") ,
<br /> with First National Bank of Minneapolis , in Minneapolis,
<br /> Minnesota (the "Trustee") , to provide , among other things ,
<br /> for the issuance of the City of Elk River , Minnesota, Indus-
<br /> trial Development Revenue Bonds (Elk River Post Office
<br /> Project) , Series 1982, in the aggregate principal amount of
<br /> $400 , 000 (the "Bonds") , by the Issuer , and the Issuer and
<br /> the Borrower have proposed to enter into a Loan Agreement,
<br /> dated as of December 1, 1982 (the "Agreement") , so as to,
<br /> among other things, loan the proceeds of the Bonds to the
<br /> Borrower to be used to acquire , construct and install the
<br /> Project , and the Borrower and the Trustee have proposed to
<br /> enter into a Mortgage and Security Agreement and Fixture
<br /> Financing Statement, dated as of December 1, 1982 (the
<br /> "Mortgage") , so as to secure the performance of the Bor-
<br /> rower 's obligations under the Agreement, and the Borrower
<br /> and the Trustee have proposed to enter into an Assignment of
<br /> Rents and Leases, dated as of December 1, 1982 (the "Assign-
<br /> ment") , whereby the Borrower assigns , grants and transfers
<br /> to the Trustee all of the Borrower 's right, title and inter-
<br /> est in and to any present and future rents, leases, sub-
<br /> leases or agreements covering all or any part of the Mort-
<br /> gaged Property (as defined in the Mortgage) as further secu-
<br /> rity for the payment of the principal of, premium, if any,
<br /> and interest on the Bonds and the performance of the Bor-
<br /> rower 's obligations under the Agreement; and
<br /> WHEREAS, the Bonds issued under the Indenture will be
<br /> secured by a pledge and assignment of the loan repayments to
<br /> be paid to the Issuer by the Borrower as required by the
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