Amount
Exhibit 10.1
RBC Wealth Management
Royal Bank of Canada Tower 49 12 East 49th Street 35th Floor New York, NY 10017
Tel.: +1 ###-###-#### Fax: +1 ###-###-#### www.rbcwm-usa.com |
May 9, 2014
TWIN CITIES POWER HOLDINGS, LLC
Attn: Timothy Krieger
Ste 210, 16233 Kenyon Ave
Lakeville, MN 55044
Re: Uncommitted Line of Credit
Dear Mr. Krieger:
You have been approved for a US$ 700,000.00 uncommitted line of credit (the "Facility") from Royal Bank of Canada (the "Bank"). The availability under the Facility may be increased or decreased by the Bank in its sole and absolute discretion. While the Bank may make extensions of credit in its sole and absolute discretion under the Facility, the Bank is not, nor shall it be, committed or otherwise obligated to make any extensions of credit under the Facility.
We are enclosing a copy of the Bank's Margin Maintenance Guidelines. These guidelines set forth the maximum loan value that the Bank may, but is not obligated to, attribute to certain classes of assets pledged to it by its clients.
Please note that any repayment of principal under the Facility may be subject to break funding costs. Please consult the relevant provisions of your loan documentation for an explanation and an illustration of how such break funding costs are calculated.
We thank you for your business. Please feel free to contact us should you have any questions.
Sincerely yours,
ROYAL BANK OF CANADA
/s/ Alexander Ingalls
Alexander Ingalls
Senior Credit Officer
Loan Confirmation | Royal Bank of Canada 12 East 49th Street 35th Floor New York, New York 10017 Telephone ###-###-#### www .rbcwminternational.com |
TWIN CITIES POWER HOLDINGS, LLC 16233 KENYON AVE LAKEVILLE, MN 55044 | Date: MAY 12, 2014 Contract: 3254565-001 |
|
Amount |
Value Date |
Contract Rollover Date |
Term |
|
700,000.00 USD |
MAY 12, 2014 |
JUN 11, 2014 |
30 DAYS |
Your interest rate will be 2.401100
Your payments will be as follows:
| Interest Amount: | Due On: |
| 1,400.64 | JUN 11, 2014 |
Please quote the contract number on all payments and correspondence. Interest and principal payments due at maturity should be made in accordance with the standard terms of our arrangement with you.
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Margin Maintenance Guidelines
The table below sets forth the loan to value advance percentages that Royal Bank of Canada (the "Bank") may, but is not obligated to, attribute in respect of certain classes of assets pledged to it by its clients. The Bank may, in its sole and absolute discretion and without notice, attribute percentages that are different from what is set forth below.
|
Asset Class1 | Loan to Value Advance Percentage |
|
Cash & RBC Time Deposits |
100% |
|
Certificates of Deposit (FDIC-insured) |
90% |
|
US/Canadian Treasury Bills |
98% |
| Commercial Paper (less than 1 year) rated: A-1/P-1 or better A-2/P-2 |
95% 85% |
| Sovereign & Supranational Notes & Bonds Rated AAA (including US Treasuries); <5 years Rated AAA (including US Treasuries); > 5 years Rated AA(+/-); < 5 years Rated AA(+/-); > 5 years Rated A(+/-);< 5 years Rated A(+/-); > 5 years Rated BBB (+/-); < 5 years Rated BBB (+/-); > 5 years Rated BB (+/-)2 ; < 5 years Rated BB (+/-)2 ; > 5 years Rated B (+/-)2 ; < 5 years Rated B (+/-)2 ; > 5 years |
95% 90% 90% 85% 85% 80% 75% 70% 70% 65% 45% 30% |
| US Agency Debt Direct Obligations & Mortgage Pass Thrus; < 5 years Direct Obligations & Mortgage Pass Thrus; > 5 years REMICs & CMOs Rated BBB - or better |
93% 85% 50% |
| State/Provincial/Municipal Notes & Bonds Rated AAA; < 5 years Rated AAA; > 5 years Rated AA(+/-); < 5 years Rated AA(+/-); > 5 years Rated A(+/-); < 5 years Rated A(+/-); > 5 years Rated BBB (+/-) < 5 years Rated BBB (+/-) > 5 years Rated BB (+/-)2 ,any term Unrated General Obligation (GOs) 2 |
90% 85% 85% 80% 80% 75% 70% 65% 40% 50% |
| Corporate Notes & Bonds Rated AAA; < 5 years Rated AAA; > 5 years Rated AA(+/-); < 5 years Rated AA(+/-); > 5 years Rated A(+/-); < 5 years Rated A(+/-); > 5 years Rated BBB (+/-); < 5 years Rated BBB (+/-); > 5 years Rated BB(+/-)2; any term |
85% 80% 80% 75% 75% 70% 70% 60% 40% |
| Mutual Funds3 (Daily redemption) Money Market Funds Investment Grade Bond Funds |
98% 80% |
| Balanced Funds Blue Chip Equity Funds Other Funds | 75% 70% 50% |
| Equities (freely tradable; Common or Preferred shares or Depository Receipts. The Bank prefers that equities on major U.S. or Canadian exchanges trade at $5.00 or more per share) - Purpose Credit (as defined in Federal Reserve Board Regulation U) - Non-Purpose Credit |
50% 70% |
| Principal Protected Structured Notes (based on Net Present Value - NPV of the principal protected amount) RBC Issued 3rd Party issued rated AAA, maxim.um remaining term to maturity not to exceed 7 years 3rd Party issued rated AA(+/-); maximum remaining term to maturity not to exceed 7 years 3rd Party issued rated A(+/-); maximum remaining term to maturity not to exceed 7 years |
95%
90%
85%
80% |
| Non-Principal Protected Structured Notes (including Reverse Convertibles and/or Equity-Linked Notes)4 RBC Issued; maximum term not exceeding 3 years 3rd Party issued rated A+ or better; maximum term not exceeding 1 year |
40%-70% 30%-60% |
1. The Bank prefers that collateral be denominated in a major currency. Where the collateral is denominated in a currency that is different from the currency of any loan, the Bank prefers that the loan value of the collateral exceed the outstanding principal balance of a loan by an amount sufficient to provide a cross-currency risk cushion of at least 5% of the currency mismatched amount. The Bank also prefers that collateral (other than cash, US Treasuries and certain other highly-rated securities) be diversified so that securities from any one issuer do not constitute more than 20% of the loan value of the collateral.
2. The Bank prefers that the sum of the loan value of (a) debt rated BB+ or lower and (b) unrated General Obligation Municipal bonds not exceed 20% of the loan value of the collateral.
3. The Bank prefers that all Mutual Funds be registered under the Investment Company Act of 1940. The loan value that secures "purpose credit" (as defined in Regulation U) shall be capped at 50% whenever required by Regulation U.
4. Loan to value advance percentages range provided as an indication. The actual lending value will depend on the structure of the Note eg: pay-off and underlying structure, as well as the overall composition of the pledged portfolio.
