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HomeMy WebLinkAboutA021 - Letter dated August 9, 1995 releasing Letter of Credit No. 01024 with copy C I T Y Ou F A M E S P.O. BOX 811 AMES IOWA 50010 Community-University-Opportunity CITY HALL, 515 Clark Avenue, Ames, IA 50010 (515-239-5105) CITY CLERK'S OFFICE August 9, 1995 Russell Soper 1118 Kennedy Street Ames, Iowa 50010 RE: Security for Public Improvements, Sopers Meadow Subdivision Dear Mr. Soper: City Engineer Jerry Byg has indicated to me that the enclosed Letter of Credit No. 01024, in the amount of $10,300.00 should be returned to you, expired as of May 25, 1995, should be returned to you as the subdivision improvements are completed. Please let me know if you have any further questions for me regarding this document, or you may contact Mr. Byg at 239-5163. Thank you. Sincerely, Sandra L. Ryan City Clerk Enclosure >:::«:»:»:>::»:;:;>:::>::> :>:<......,..:.. ...:.....:.......................:......:::. IRREVOCABLE BRENTO LETTER OF Member FDIC CREDIT BRENTON SAVINGS BANK CITY OF AMES OF AMES FSB AMES, IA 50010 NO.: 01024 424 MAIk STREET i7ele fi :Numtiei:: ` >................ AMES IA 50010 P:::::.: :::::::::::::::.:::::::::::::::::::::::::::::::;>.::.:::.:::..::::.:::::::::.:,:.::::::::.::.::::::::: Rende2-2714 515f 2 3 r) ) Lender identified above hereby establishes an Irrevocable Letter of Credit in favor of Beneficiary for a sum not exceeding the aggregate amountof TEN THOUSAND THREE HUNDRED AND N01100 Dollars ($ 10,300.00 ). These funds shall be made available by Beneficiary's drafts drawn on Lender at its address indicated above (or such other address that Lender may provide Beneficiary with written notice of in the future) and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER,YOU SHOULD CONTACT THE PARTY IN WHOSE FAVOR THIS LETTER OF CREDIT IS BEING ISSUED TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. 1. DRAFT TERMS AND CONDITIONS _ _ Lender shall honor the drafts submitted by Beneficiary under the following terms and conditions: As they pertain to the completion of streets and sidewalks on the property - -- being developed by Russell S. Soper. Upon Lender's honor of such drafts and payment to the Beneficiary, Lender, once the full amount of credit available under this Letter of Credit has been drawn,shall be fully discharged of its obligations under this Letter of Credit and shall not thereafter be obligated to make any further payments under this Letter of Credit in respect of such demand for payments to Beneficiary or any other person. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit after Lender honors any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by any party or under the name of any party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary. By presenting upon Lender or confirmer, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender and confirmer any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. 2. USE RESTRICTIONS All drafts must be marked"DRAWN UNDER IRREVOCABLE LETTER OF CREDIT NO. 01024 DATED MAY 25, 1993 . ". Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. © If checked, a copy of this Letter of Credit must accompany each draft and the amount of each draft shall be marked on the draft. Beneficiary shall maintain possession of Letter of Credit until the full amount of this Letter of Credit has been drawn. Once the full amount is drawn, Beneficiary,shall return the Letter of Credit to Lender. Partial draws ❑% are permitted ❑ are not permitted under this Letter of Credit. Lender's honor of a draw shall automatically reduce the amount of credit available under this Letter. 3. ASSIGNMENT OR TRANSFER ❑This Letter of Credit may be assigned or transferred by Beneficiary upon providing Lender with prior written notice of the assignment or transfer. ©The right to draw under this Letter of Credit shall be nontransferable,except for: A. A transfer by direct operation of law to the original beneficiary's administrator, executor, bankruptcy trustee, receiver, liquidator, successor,or other representatives at law; and B. The first immediate transfer by such legal representative to a third parry after express approval of a governmental body Qudicial, administrative,or executive). 4. TRANSFEREE'S REQUIRED DOCUMENTS When the presenter is a legal respresentative under subparagraph 3.A. or a third party under subparagraph 3.B., the documents required for a draw shall include: _ A. All documents required elsewhere in this Letter of Credit, except that such documents may be in the name of either the original beneficiary or the presenter permitted by paragraph 3; and B. A certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original beneficiary. 5. TIMING OF DISHONOR - - — To the extent not prohibited by law, Lender shall be entitled to honor or dishonor any draw submitted in connection with-this Letter of Credit within five (5) banking days. Although Lender shall be entitled to honor or dishonor a draw beyond the expiration date of this Letter of Credit, Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the expiration date hereof. LP-IA602©FormAtion Technologies,Inc. (4/13/91) (800)937-3798 6. MODIFICATION The modification or waiver of any of Lender's or Beneficiarys obligations or rights under this Letter of Credit must be contained in a writing signed by Lender. A waiver on one occasion shall not constitute a waiver on any other occasion. 7. COMPLIANCE BURDEN Under no circumstances shall Lender be held responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i)that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary; and (ii)that Lender is relying upon the lack of such amendment as constituting Reneficiarys initial and continued approval of such wording. 8. NON-SEVERABILITY _ If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non-:everability provision shall-override-all-other provisions-in-this-Letter-of Credit;-no matter-where-such provision appears-with in_the Letter's body. 9. CHOICE OF LAW/JURISDICTION This Letter of Credit shall be governed by the laws of the state indicated in Lender's address to the extent not governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits(1983) Revision and to the extent such laws are not inconsistent with the terms of this Letter of Credit. Lender and Beneficiary consent to the jurisdiction and venue of any court located in the state indicated in Lender's address in the event of any legal proceeding under this Letter of Credit. 10.EXPIRY Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to the Lender on or before MAY 25, 1995 r Dated: MAY 25, 1993 LENDER: BRENTON SAVINGS B OF BY: TIMOTHYIt' GERMAN TITLE: VICE PRESIDENT ENDORSEMENT OF DRAFTS DRAWN: _ Amount Amount Date, Negotiated By In Words In Figures LP-IA602©FormAtion Technologies,Inc. (4/13/91) (800)937-3799