To: Tamarack Municipal Association Membership

Re: Legal Update Regarding Foreclosure and Sheriff's Sales

From: Stephen J. Lord, Association Counsel

            Scheduled sheriff's sales for Village Plaza and Lake Wing were recently postponed. There appears to be an agreement between MHTN (Lake Wing lien holder), Banner Sabey (Village Plaza lien holder), and Credit Suisse mortgage (lien holder on everything except Lake Wing, Village Plaza, BAG Parcels, Trillium Town Homes) to postpone the sales on Village Plaza, Lake Wing, and probably the Credit Suisse collateral, until some time in early September.

            TMA has heard the same rumors many of you may have heard, which is that some definitive disposition, in the form of a sale to a new developer, will also occur on that date.

            At present, TMA is not aware of any definitive disposition. In fact, it is unlikely, although possible, that a definitive disposition would occur as a consequence of the sheriff sales. The most likely outcome, again from TMA's perspective, is that each one of the lien holder/mortgagee parties will end up making a credit bid that will result in that creditor's ownership of its senior lien property.

            TMA is likely to be in a fairly high position with respect to early knowledge of any definitive sale, as any transition will require a new owner to become familiar with TMA's numerous activities in the Resort.