**Exhibit10.17**

 
|  | CAPITAL MARKETS  EQUITY RESEARCH  INVESTMENT BANKING  CORRESPONDENT SERVICES  STRATEGIC ALLIANCES |
|--|---------------------------------------------------------------------------------------------------|

 

June 1, 2005

 

 

Darrel Posegate

Executive VicePresident/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 BankNational Association has approved a Three Million Dollar ($3,000,000.00)increase HF Financial Corporation’s existing Revolving Line of Credit withFirst Tennessee Bank.  The new RevolvingLine of Credit will total Six Million Dollars ($6,000,000.00).  HFC****may useadvances under this line of credit for: i) capital infusion to its subsidiaries to support growth and/or bank orbranch acquisitions, ii) acquisition of bank holding companies, and iii) otherliquidity needs.  At or near maturity,FTB will review the line of credit for the possibility of another one-yearextension.

 

The interest on the outstanding balance will bepayable quarterly at a variable rate per annum on the outstanding balance.  The variable rate of interest shall be 1⁄4%discount to First Tennessee’s Base Rate, which is currently 6.00%.  Thus, your borrowing rate today would equal5.75%.  **The maturitydate of this commitment is May 29, 2006**.

 

This indebtedness shall be governed by the originalcovenants and conditions set forth in the commitment letter dated June 3,2003.

 

Additionally, this letterconfirms the renewal and increase of Home Federal Bank’s Fed Fundsaccommodation.  First Tennessee Bank hasincreased this accommodation to Fifteen Million Dollars ($15,000,000.00).  **This increase will go intoeffect on June 30, 2005 and will cover the period from June 30, 2005to June 30, 2006 and is subject to the following:**

 

•                  In accordance with First TennesseePolicy, this is not a confirmed line and is subject to cancellation at anytime.  Reasons for cancellation include,but are not limited to changes in the financial condition, in the seniormanagement or the liquidity position of Home Federal Bank or the funding mix ofFirst Tennessee Bank.

 

FTN FINANCIAL GROUP

845 Crossover Lane, Suite 150

Memphis, Tennessee 38117

901.435.8080 / 800.456.5460

www.ftnfinancial.com

 

FTN Financial Group is a division of First Tennessee Bank NationalAssociation. FTN Financial Group, through First Tennessee Bank or itsaffiliates, offers investment products and services.

 

 

1

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•                  Requestsfor borrowing over the pre-approved limit will be considered on a case-to-casebasis.  Fed Funds purchases need not berenewed on a daily basis. Continuous borrowings in excess of fourteen (14) daysmust be secured in full by U. S. Government or Agency Securities.

 

•                  Requeststo borrow Fed Funds can be made by calling the Financial Institutions Divisionat 1-800-934-8937 Extension 7981.  Thecutoff time for borrowing Fed Funds is 3:00 P.M. (CST).

 

Darrel, it is a pleasureof First Tennessee Bank to provide these commitments/accommodations to yourinstitution and look forward to servicing the financial needs of the company inthe future.  Please do not hesitate tocall if you have any questions or concerns.

 

Sincerely,

 

 
| /s/ David House |   |
|-----------------|--------|

David House

Vice President

Correspondent Services

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