Revolving Line of Credit and Fed Funds Accommodation Agreement between First Tennessee Bank and HF Financial Corp.
This agreement confirms that First Tennessee Bank has renewed a $3,000,000 revolving line of credit for HF Financial Corp., which can be used for capital infusions, acquisitions, and liquidity needs, with a maturity date of May 30, 2005. The interest rate is variable, set at 0.25% below the bank's base rate. The agreement also renews a $10,000,000 Fed Funds accommodation for Home Federal Bank, available from June 30, 2004, to June 30, 2005, subject to cancellation and certain conditions. Both arrangements are governed by prior covenants and policies.
Exhibit 10.19
July 12, 2004
Darrel Posegate
Executive Vice President/Chief Financial Officer
HF Financial Corp.
P.O. Box 5000
Sioux Falls, SD 57117 5000
Dear Darrel:
I am pleased to announce that First Tennessee Bank National Association has re-approved a Revolving Line of Credit in an amount of Three Million Dollars ($3,000,000.00) to HF Financial Corp. HFC may use advances under this line of credit for: i) capital infusion to its subsidiaries to support growth and/or bank or branch acquisitions, ii) acquisition of bank holding companies, and iii) other liquidity needs. At or near maturity, FTB will review the line of credit for the possibility of another one-year extension.
The interest on the outstanding balance will be payable quarterly at a variable rate per annum on the outstanding balance. The variable rate of interest shall be ¼% discount to First Tennessees Base Rate, which is currently 4.25%. Thus, your borrowing rate today would equal 4.00%. The maturity date of this commitment is May 30, 2005.
This indebtedness shall be governed by the original covenants and conditions set forth in the commitment letter dated June 3, 2003.
Additionally, this letter confirms the renewal of Home Federal Banks Fed Funds accommodation of Ten Million Dollars ($10,000,000.00). This accommodation covers the period from June 30, 2004 to June 30, 2005 and is subject to the following:
In accordance with First Tennessee Policy, this is not a confirmed line and is subject to cancellation at any time. Reasons for cancellation include, but are not limited to changes in the financial condition, in the senior management or the liquidity position of Home Federal Bank or the funding mix of First Tennessee Bank.
Requests for borrowing over the pre-approved limit will be considered on a case-to-case basis. Fed Funds purchases need not be renewed on a daily basis. Continuous borrowings in excess of fourteen (14) days must be secured in full by U. S. Government or Agency Securities.
Requests to borrow Fed Funds can be made by calling the Financial Institutions Division at ###-###-####. The cutoff time for borrowing Fed Funds is 3:00 P.M. (CST).
Darrel, it is a pleasure of First Tennessee Bank to provide these commitments/accommodations to your institution and look forward to servicing the financial needs of the company in the future. Please do not hesitate to call if you have any questions or concerns.
Sincerely, | |
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/s/ David House |
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David House | |
Vice President | |
Correspondent Services |