1. HOA Loans For Construction Projects Surfside III Presentation November 19, 2005 Presented by Judy Remley

2. Association Bank Services “ First Bank Association Loan ” zFirst Bank and Surfside III have had a strong working bank relationship since 11-99. First Bank specializes in Homeowner Association loans.

3. Association Bank Services “ First Bank Association Loan ” zRepair now (pay over time) zLoan finances monthly S/A payers zLoan to the Association zNo Liens on homeowner property zNo prepayment penalty

4. Association Bank Services “ First Bank Association Loans ” zLoan based on cash flow of HOA zProcedures in CC&R’s will stipulate if vote is needed by homeowners to obtain a loan zLoan no substitute for Special Assessment zLoan automatically begins as NRLOC

5. Association Bank Services NRLOC (Non-revolving line of credit) zUp to 12-months zMoney drawn as needed. Monthly payments = interest only on drawn amounts. Draw request will be verified before advancing funds. TL (Term Loan) zFully amortized zMonthly payments = princ. and int.

6. Association Bank Services Rate & Terms zAmount: $17,600,000 zTerms: 15 years (180-months) zRate: 8.00% Fixed zLoan Fee:.75 Point ($132,000) zDoc Fee: None zMaximum LTPV (project) = 50% zMinimum Owner occupancy = 50% zThe above terms and rates are for comparison information only. There has been no commitment by the bank or association on a loan. The bank reserves the right to revise proposed pricing and loan structure based on review of the association’s application.

7. “Association Bank Services “First Bank Association Loans” Special Assessment on $17,600,000 z$56,958 per Homeowner z$544 monthly @ 8.00% 15years

8. Association Bank Services “OTHER HOMEOWNER LOAN OPTIONS” zFirst Bank Equity Line of Credit xPrime + 0% Adjustable(Prime is currently 7.00%) x10 year interest only ($57.53 monthly per $10,000) x15 year amortized Principal + interest x Promotional rate of 5.25% for the first six months for applications received on or before November 30, 2005 xPossible tax benefits x$50 yearly fee waived first year x$300 early closure fee within first 3 years except if property is sold

9. Association Bank Services “OTHER HOMEOWNER LOAN OPTIONS” zFirst Bank Closed-end Home Equity Loan x8.00% fixed loans 85-180 months x$95.57 monthly per $10,000 for 180 months xLTV 80% xFees waived on loans $250,000 and below zRefinance First Bank Mortgage x6.25% fixed 30 year $61.57 per $10,000 x6.00% fixed 15 year $85.00 per $10,000 xFirst Bank Mortgage, Terry Munz 805-563-6457