SENYLRC MINUTES OF THE BOARD OF TRUSTEES
July 14, 2004

J. Shaloiko reported on activities regarding the purchase of the building at 21 South Elting Corners Road: 1) the building inspection has been completed and the report received with no major problems identified other than normal improvements needed to be made to a 12 year old building, 2) the next step is the development of the contract of sale between SENYLRC’s attorney, Sean Denvir of Ryan, Roach & Ryan and the seller’s attorney; 3) the need to select the bank as SENYLRC’s lending institution., 4) the estimated fiscal impact in 04/05 associated with the acquisition of the building (down payment, closing costs, moving costs, renovation and move-in costs, and annual utility costs). It was the consensus of the attending board members to accept the building “as is” and not pursue from the seller cost recovery of any of the improvements and servicing required before move-in as they were determined to be relatively minor and low-cost in nature.

J. Shaloiko presented to the board the proposed terms and conditions from two lending institutions: Bank of New York and Rondout Savings Bank. After negotiating with both banks, J. Shaloiko reported that the terms and conditions were practically identical. However, he also pointed out that Rondout Bank was more of a community-focused bank that was important to consider as well as that bank has a prior good working relationship with Ryan, Roach and Ryan, the surveyor and the Title Insurance Company which could work to our benefit to help expedite closing issues. Finally Rondout Bank is a participating lender in the NYSERDA (New York State Energy Research and Development authority) program that provides reduced lending rates for energy-improvement loans. SENYLRC does have a deposit relationship with the Bank of NY, but Rondout is not requiring such a relationship.