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PUBLIC IMPROVEMENT SURETY AGREEMENT <br />Elk Ridge Estates <br />THIS AGREEMENT is entered into on February 1st, 2021, by Registered Abstractors, <br />Inc., a Minnesota corporation ("Escrow Agent"), City of Elk River ("City"), Contractors <br />Capital Company, LLC, a Minnesota limited liability company ("Developer"), and <br />Northeast Bank, a Minnesota corporation ("Bank"). <br />RECITALS <br />WHEREAS, City and Developer have entered into a Development Agreement dated <br />February 1, 2021 ("Development Agreement") pursuant to which Developer has agreed to <br />deposit certain funds as identified in Paragraph 2 below in escrow in lieu of a letter of <br />credit; and <br />WHEREAS, Developer agrees to privately construct improvements serving Elk <br />Ridge Estates, legally described on Attachment A; and <br />WHEREAS, the Final Plat for Elk Ridge Estates is attached hereto as <br />Attachment B; and <br />WHEREAS, City and Developer desire that Escrow Agent disburse the advances <br />and Escrow Agent is willing to do so on the terms and conditions hereinafter set forth, <br />without providing any title or mechanic lien clearance services; and <br />WHEREAS, capitalized terms used, and not otherwise defined herein, shall have <br />the meanings set forth in the Development Agreement; and <br />NOW THEREF ORE, in consideration of the foregoing recitals and other good <br />and valuable consideration, it is agreed between the parties as follows: <br />1. Developer will deposit escrowed funds in the amount of $926,678.00 with <br />Escrow Agent. The deposit of these funds ("Loan Funds") represents the loan fund <br />which the Developer/Borrower has secured from Bank. The Loan Funds shall be <br />deposited in an Escrow Account at the Bank ('Escrow Account") and held in the name <br />of the Escrow Agent. Escrow Agent acknowledges that the Escrow Account shall he <br />utilized only for draws for improvements undertaken and completed pursuant to the <br />Surety Agreement, Development Agreement, and Loan Agreement between Borrower <br />and Developer. In no event shall Escrow Agent be allowed to comingle any Loan Funds <br />or withdraw any Loan Funds from said Escrow Account for any use other than <br />reimbursement for the costs of improvements defined in the Development Agreement. <br />2. Escrow Agent is authorized and directed to disburse the funds deposited <br />1 <br />