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HomeMy WebLinkAboutA008 - Letter dated October 18, 2001 certifying receipt of Letter of Credit with copy - $524,000 - City Clerk's Office 515 Clark Avenue,P. O. Box 811 Ames,IA 50010 (wring People Phone: 515-23 9-5105 Quality Programs Fwpi .1 Smia Fax: 515-239-5142 October 18, 2001 TO WHOM IT MAY CONCERN: I, Diane R. Voss, hereby certify that I have this date received from Steve Goodhue, First American Bank, a Letter of Credit in the amount of$524,000. Said instrument has been placed on file in the Ames City Clerk's Office, 515 Clark Avenue, for the development of public improvements(Water Main: $60,294; Sanitary Sewer: $113,150; Storm Sewer: $201,416; Curb and Gutter: $32,283; ACC Paving: $83,046.60; Street Lights: $9,000; Inspections/Administration: $24,810.40) in Northridge Heights Subdivision, 2nd Addition, City of Ames, Iowa. By: - Diane Voss Title: City Clerk emt) City Clerk's Office Caring Pcople rL�ji tyPrograra Eraptional Scrvia li j 101TY OF G?Y ULLR1Yi���-� TO: City Clerk's Office s FROM: J®HN JOIVKK� , Public Works Department DATE: e9c4 b e.r' 161 Zd 01 SUBJECT: Required Security for Subdivision A bond* in the amount of$ 52 DO is required for the /"/Y.- • 2 No Subdivision. The bond will secure acceptable performance of the following public improvements: Improvement Amount $ Z9 -— Sa�` y $ t l3 /50 — Cj $ C�B.g G r rm< $ 32 Z 3 — r L0 . $ -- 1n5P fA - z4,41o , 40 /dry *Bond: Any form of security including a letter of credit, a cash deposit, surety bond, collateral, property or instrument of credit in an amount and form satisfactory to the City Council. ERM FIRST '`^ AMERICAN IRREVOCABLE MABANK LETTER OF 1207 Central Avenue-Box 798-Fort Dodge,IA 50501 CITY' OF AMES 515.573-2154-Fax 515-573.8582 "LENDER" CREDIT 515 CLARK"AVENUE NO.: 10035512 AMES, IOWA 50010 A17II?ICAT.[ N :TEyERHONF•;;N©<?s`::>::#:>:?;�;`:t;: <:>:>:<a:£)�:::::::..::.:. :::::::::::::::.:::::::::::::. :'..'...... ;.....•:: :::::::: ;i:; : `•:::< ::::::::x::%$:: i::::::ii:;::::::.:::::::;:..;..YY.��.:tt.+.�..:..:}:M....+. HUNZIKER CHRISTY SHIRK BUILDING INC This Letter of Credit shall expire upon the earlier of: Ref: Northridge Heights, Plat 2 1. the close of business on SEPTEMBER 6 2002 _and_all-drafts-and-accompanyinn-statemP�ts <.>;:.;:.;:.;:;:.;:.:;.;:.;:.;:.; : ::: must be resented to Lender on or before that time; or :>: mu p 105 S. 16TH STREET 2. the day that Lender honors a draw under which the full AMES.,....IA.......5 0 010 tter of r edit is drawn. FJCfCxiE�N amo unt of this Le C ::fEL :`<'s:::>::;! :::::?::::::::: t;'S:;: Y;:;: Lender indicated above ("Lender") hereby establishes at the request and for the account of Customer an Irrevocable Letter of Credit in favor of Beneficiary for a sum or sums not exceeding the aggregate amount of FIVE HUNDRED TWENTY-FOUR THOUSAND AND N0/100 Dollars ($ 524,000.00 ), These funds shall be made available to Beneficiary against Lender's receipt from Beneficiary of drafts drawn at sight on Lender at its address indicated above (or such other address that Lender may provide Beneficiary with written notice of in the future) during regular business hours 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 YOUR CUSTOMER IMMEDIATELY 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: EACH DRAFT MUST STATE THAT IT IS "DRAWN UNDER FIRST AMERICAN BANK OF AMES LETTER OF CREDIT #10028526 DATED JUNE 14TH, 2001 FOR THE ACCOUNT OF HUNZIKER LAND DEVELOPMENT COMPANY L.L.C. THE BANK AGREES WITH THE DRAWER, ENDORSERS, AND -BONA FIDE HOLDERS OF ALL DRAFTS UNDER AND IN COMPLIANCE WITH -THE-TERMS OF THIS IRREVOCABLE LETTER OF CREDIT THAT SUCH DRAFTS WILL BE . HONORED UPON PRESENTATION TO THE DRAWER. THE ORIGINAL LETTER.,OF CREDIT AS FIRST REQUIRED DOCUMENT WILL BE REPLACED BY YOUR SIGNED STATEMENT WHICH WILL READ, "THE ORIGINAL LETTER OF CREDIT HAS NOT BEEN ENDORSED BY ANY PARTY FOR PAYMENT OF ANY PRIOR DRAFT." THIS LETTER OF, CREDIT IS SUBJECT TO THE UNIFORMS, CUSTOMS & PRACTICE FOR DOCUMENTARY CREDIT (1983 REV.) INT. 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. If a non-conforming demand is made, Lender shall notify Beneficiary of its dishonor on or before the time mentioned in Section 5 below. 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 parry or under the name of any party purporting to act for Beneficiary, purporting to claim through Beneficiary,or posing as Beneficiary. By paying to Beneficiary an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness-of the amount demanded and Lender shall not be liable to Beneficiary or any other person for or in respect to any amount so paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, 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 or a confirming bank 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 FIRST AMERICAN BANK - IRREVOCABLE LETTER OF CREDIT NO. -10,035.512 - DATED SEPTEMBER 6, 2001 ", and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's Transferee(only if transferable) may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws ❑% are permitted ❑ are not permitted under this Letter of Credit. Lender's honor of a partial draw shall correspondingly reduce the amount of credit available under this Letter of Credit. Following a partial draw, Lender shall return this original Letter of.Credit to Beneficiary with the partial draw noted thereon; in the alternative, and in its sole discretion, Lender may issue a substitute Letter of Credit to Beneficiary in the amount shown above less any partial draw(s). 3. PERMITTED TRANSFEREES © This Letter of Credit may be transferred by Beneficiary upon providing Lender with prior written notice of the transfer. The Transferee shall be deemed the new Beneficiary of this Letter of Credit and the documents of the Transferee, including drafts required under this Letter of Credit, are to be processed by Lender (or any intermediary) without the original Beneficiary's intervention and without any further responsibility on Lender's part to the original Beneficiary. ❑ The right to draw under this Letter of Credit shall be nontransferable,except for: A. A transfer(in its entirety, but not in part) by direct operation of law to the original Beneficiary's administrator, executor, bankruptcy trustee, receiver, liquidator, successor,or other representatives at law; and__aJ_ B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body Qudicial,administrative,or executive). LP-IA602 ©FormAtion Technologies,Inc. (3/10/93) (800)937-3799 4. TRANSFEREE'S REQUIRED DOCUMENTS When the presenter is a permitted Transferee under paragraph 3 above,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. When the presenter is a permitted Transferee under paragraph &A or a third party under 3.6, 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 Under no circumstances shall Lender be precluded from relying upon any reason for dishonor given in a communication which Beneficiary or the presenter receives within three (3) Banking Days after Lender has received the last document forming part of Beneficiary's presentment(the"Three-Day Period"). Lender shall be entitled to rely upon any such reason without regard to either(i)the timing of any presentment made before the. Expiry Date, or (ii) the timing inside the Three-Day Period of any preliminary communication(s)from Lender concerning the dishonor decision itself or any reason for dishonor. For any such reason so given during the Three-Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the U.C.P. may impose. The Expiry Date shall not be extended to accommodate a presentment made with less than - three (3) Banking Days to go before the Expiry Date; and 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. Nor shall Lender ever be required to communicate a dishonor decision or its reasons within a time less than the Three-Day Period. "Banking Day" shall mean any day on which commercial banks located in the state of Lender's address are either not authorized or are not required to close. 6. 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 Beneficiary's initial and continued approval of such wording. 7. 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-severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within the Letter's body. 8. CHOICE OF LAW/JURISDICTION The Uniform Customs and Practice for Documentary Credits as most recently published by the International Chamber of Commerce (hereinafter called the"UCP") shall in all respects be deemed a part hereof as fully as if incorporated herein and shall apply to this Letter _ of Credit. This Agreement shall be governed by and construed in accordance with the laws of the State of IOWA , United States of America, except to the extent such laws are inconsistent with the UCP. Lender and Beneficiary consent to the jurisdiction and venue of any court located in the State of IOWA in the event of any legal proceeding under this Letter of Credit. 9. EXPIRY Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with-the teams-of this-Letter of-Credit will be duly honored if presented to the Lender on or before the Expiration Date. Dated: SEPTEMBER 6, 2001 LEN RST AMERICAN BANK BY: ~ STEVE-JI300DRUE TITLE: EXECUTIVE VICE PRESIDENT ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures LP-IA602 ©ForrnAtlon Technologies,Inc. (3/10/93) (800)937-3799