(BANK LETTERHEAD)

DATE*

Minnesota Housing Finance Agency
400 Wabasha Street North, Suite 400
St. Paul, MN 55102

Letter of Credit No.  			

Ladies and Gentlemen:

We hereby establish this as our unconditional irrevocable letter of credit in your favor for the account of [Insert Borrower name] in the amount of [Insert amount in words] Dollars ($[Insert numeric amount]) available to you at any time after the date hereof by your draft or drafts drawn at sight on the undersigned bank. All drafts drawn under this letter of credit must be endorsed hereon and must bear the clause, "Drawn under [Insert Bank name] of [Insert Bank address, city], Minnesota, Letter of Credit No. [Insert number], Date:  *			, 20	.

All drafts shall be accompanied by your officially signed statement that the draft is drawn in payment under amounts due you in accordance with MHFA requirements and regulations and that certain agreement entitled Operating Deficit Reserve and Escrow Account Agreement dated the *		 day of 			, 20	, with respect to the [Insert name of development] project to be [Insert the word constructed or rehabilitated] at [Insert property address] in [Insert city where property is located], Minnesota and identified as MHFA Development No. [Insert MHFA development number].

Drafts must be negotiated not later than **						.

We hereby agree with the drawers, endorsers and bona fide holders of drafts drawn under and in compliance with terms of this letter of credit that drafts will be duly honored upon presentation to us.

					
Signature of Authorized Bank Officer

*	Date of closing will be inserted when original signed Letter of Credit is issued for closing.
**	Date that is one year from closing date will be inserted when original signed Letter of Credit is issued for closing.