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HomeMy WebLinkAboutA022 - Letter dated June 15, 2005 releasing Letter of Credit No. 11056063 - $14,000 - CityClerk's Office 515 Clark Avenue,P.O.Box 811 Ames,IA 50010 Coring Peopk - �iyP,�gr,,,,� Phone: 515-239-5105 Eueprlond serve Fax: 515-239-5142 June 15, 2005 Hunziker Land Development Company 105 S. 16'h Street Ames,Iowa 50010 Attention Chuck Winkleblack RE:Northridge Heights Subdivision, Sixth Addition Dear Chuck: At their meeting of June 14, 2005,the Ames City Council released the financial security on file for the above-named Subdivision. Enclosed is the Irrevocable Letter of Credit No. 11056063 in the amount of$14,000. If you have any questions,please contact me. Thank you! Sincerely, Diane Voss City Clerk /dry Enclosure 0 9� � 671 i .......'r..I..E...IN...�I.EI±.[.F..I.fi.....x..I..y.y'.Y....FIR T :.+.: ............ . a.•.'' _t. OF CITY AMES ° AMERICAN IRREVOCABLE BANK ' FOR NORTHRIDGE HEIGHTS 6TH` ADDITION.! :'. LEEk � FIRST AMERICAN BANK CREa �' 1530 SOUTH DUFF AMES,IA 50010 :.::.::•.;•::?•:.;}.::.::•::::;...::......:::••::.:•:•:.:::.:..:............::::::::::::::::::::::::::::.:::. . 5 "LENDER" 15 223-2033 LE NDER N.po54a63 i a, J .. •A: t'rt 1 P:• ;t;e.. ::R4 .Hgp1iN6':3>? : :'IR ...�14%TIW :14s:z•#tis:?:t:i':<Fiti:: {# ii}}: i::i::ii: i::iiiiri;•?iiij}ir$ir}ii::ii :::i::?::i::i::j::}.:ir::i::ii::$::?:: }}iiii:•j$}::::}; i J,�/''•:III .�'.4iIIRAt>+:^:w:w::;,.}}•.:::•:•rc v.. - :•.��?7. S:i<: i':jji}ijijijjji`•ijii}iii'ijiiij:iii}ii:?{:i:2{:ii$ij$i i•:•i'r}:?i:t{?r:TNY1r I"� � - HUNZIKER LAND DEVELOPMENT 't ' COMPANY, L.L.C. This Letter of Credit shall expire upon the esdier of,1' `f z, 1. the close of business on.: August 12-;-:2005 and all drafts and.accompanying statements'bt documents t o s o e on Y b fo a thatti must b resented t Lender o. .e. r..;.., ..... :: - 105 S. 16TH STREET 2. the'day that Lender honors a draw.under which the full AMES, IA 50010 amount of this Letter of redit has been drown :. a .r ::::::.::::::::::::::.::::.:::::::::#ertt #at.rev,...................:.:::.:::: C ................. . Lender hereby establishes at the request and for the account of Customer, an Irrevocable1etter of Credit in''favor of;BenefiGiary fora sum of Fourteen Thousand and no/100 Dollars ($ '.14,00.0,t00 These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lentler at`LeFttler .; address indicated above (or such other address that Lender may provide Beneficiary in .writing) during regular business hours 2tritl 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 T4 MEETtANY OF tTS -. REQUIREMENTS, EITHER SINGLY OR TOGETHER,YOU SHOULD CONTACT THE.CUSTOMER.IMMEDIATELY 70 SEA IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS.LETT ER,OF CREDIT`FOR RAILURE TO 1 COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. } 1. DRAFT TERMS AND CONDITIONS Lender shall honor drafts submitted by Beneficiary under the following terms.and conditions i EACH DRAFT MUST STATE THAT IT IS "DRAWN UNDER FIRST AMERICAN BANK OF`AMES hETTER'OF ', . CREDIT NO. 11056063 DATED 08/12/2004 FOR THE ACCOUNT' OF HUNZIKER 'LAND',DEVELOPMENT COMPANY, L.L.C." THE BANK AGREES WITH THE DRAWER, ENDORSERS, .AND'.BONA',VZO OF ALL DRAFTS UNDER AND IN COMPLIANCE WITH THE TERMS' OF*THIS'.IRREVOGABI>i+ L$TTER 08, i CREDIT THAT SUCH DRAFTS WILL BE HONORED UPON PRESENTATION TO' 't+BE'DRAiTER 'x$ ' ORIGINAL LETTER OF CREDIT AS FIRST REQUIRED DOCUMENTS WILL. BE REPLACiED-,gi. YQIIR l t SIGNED STAETMENT WHICH WILL READ, "THE ORIGINAL LETTER OF CREDIT•HAS NOT BEPN ENDORSED BY ANY PARTY FOR PAYMENT OF ANY PRIOR DRAFT." S ' .Upon Lender's honor of such drafts, Lender shall be fully discharged of its obligations_under this tetter}of,,Crgd�t and shall Ciot-13e obligated to make any further payments under this Letter of Credit once the full amount of credit-available under this Leiter affCredit has been drawn. If a non-conforming demand is made, Lender shall notify Beneficiary of.its dishonor on:-or"before the#ime specified°in Paragraph 5 below. Beneficiary shall have no recourse against Lender for any amount paid under this Letterof Credit oncd1ender`has tiono�ed iaray draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise an order iaut yyhictl �s s(gnpxft issued, or presented by a party or under the name of a party purporting to act.`for Beneficiary;'purporting:to ctaam�througheneciat ,sir posing as Beneficiary without Beneficiary's authorization. By paying an.amount demanded.ln accordance:with#his Letter�f Credit, antler L t makes no representation as to the correctness of the amount demanded and Lender shaltnot be liable toS Benei�iciary,or any otte r perso for any amount paid or disbursed for any reason,whatsoever, including, without limitation;,any ncnapplication or m sappliiwafion b Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming.bank;Beneficiary.certifies that Beneficiary leas�1ot, and will not present upon the other,.unless and until Beneficiary meets with dishonor. Beneficiary promises to reiurn to Len k;a6y:fwnd`i received by Beneficiary in excess of the Letter of Credits maximum drawing amount. ~ ` 2. USE RESTRICTIONS i r All drafts must be marked"DRAWN UNDER FIRST AMERICAN BANK IRREVOCABLE LETTER OF CREDIT NO11056063 ; iDgT ti; December 06, 2004' ,°and the amount of each draft shall be marked_on the draft Only Beneficrar�r bX;l3n�f�ciary's Transferee (if this Letter of Credit is transferable) may complete a draft.and accompanjnng statement or'docu[tiepts to r i {cE {this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any ttra Mrewn 1aerof finder; - x Partial draws are-permitted ® are not permitted under this Letter of Credit. Lender's-honor of a partial draw ahall correspondingly reduce the amount of credit available under this Letter of'Credd."Following a partial draw; Lendershall�ieturn thi original Letter of Credit to Beneficiary with the partial draw noted hereon;in the alternative'; and in rts soie',drscretian,lender tnay issue a substitute Letter of Credit to Beneficiary in the amount shown above,less any partial 3. PERMITTED TRANSFEREES ❑ If checked,this Letter of Credit may be transferred by Beneficiary upon prior written notice to Lendflf ansfe'r4`3Thee Trelt�sf�ree shall be deemed the new Beneficiary of this Letter of Credit and the documenrts of the Trans#ere 1icy�`rlfaf �rgtrie er, YN ! k0 i� X i jjc,F•�:.G.y this Letter of Credit,will be processed by Lender(or any intermediary)without the original BenQflrl{ �"���t�tlo1�:8 ����► at;��'", ; further obligation of Lender to the original Beneficiary. f�U ,,� ��b�'S�� ® If checked,the right to draw under this Letter of Credit shall be nontransferable,except for + ; ,qi ` l i Ulu A. A transfer in its entire but not in art b direct operation of lawao the on anal Benefice I( entirety, part) Y P . 9 trustee, receiver, liquidator,successor,or other representative at law and dirt'jrL) B. The first immediate transfer(in its entirety, but not in part) by such legal representative to a third,party aft$�,, governmental body(judicial,administrative,or executive). }r i�)7rs ,MAST602©FonnABon Technologies,Inc. (9/3/98) (800)937.3789 g e f J -,. !!,� ! it� �'Sp , r1e•5•�,z} J.(,� �ri� 3 - ..Sf.x ....:7., t^l,r,�':1 t�,#f?ss?-=P1�,C:h_x,:Lt..f` aben 4•�!.±.I•A.:��t..ia•. - 4 'TRANSFEREE'$RE4UIRED DOCUMENT$ Whenthe presenter is a permitted Transfe[ee.under paragraph 3 above,the documents required for a draw shall include: ,< �t A i ;All siocyments regwred elsewhere in this Letter'of Credit,except that such documents may be in the name of and executed by either the original Beneficiary or the presenter permitted by paragraph 3;and 1. B rVl(hen the presenter is a permitted Transferee,under paragraph 3.A.or a third party under paragraph 3.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, IMING'i QF DISHONOR yL`ender may rely upon any.reason or.dishonor which it communicates to Beneficiary or the presenter within three(3) Banking Days after Lender has receNe`d the last document forming Beneficiary's presentment(the"Three-Day Period"). Lender shall be entitled to rely upon such Peason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the ThEge-Day Renod of any preliminary communications)from Lender concerning the dishonor decision or any reason for dishonor. For Many[eason for,dishonor given'durmg the Three-Day Period, Lender shall be conclusively deemed to have met the "reasonable time', "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Puplicat+on,No 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall trot be.`extended to accommodate a presentment made less than three (3) Banking Days before the Expiration 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 Lender shall not be required.to communicate.a dishonor decision or its reasons within a time less than the Three-Day Period. "Bahkrng Day"means any day,exi;ept Saturday,on which commercial banks located in Iowa are open: =6 COMPLIAI��E BURDEN Lerjd.r is riot responsible:for any'4mpoeaibility or other difficulty in achieving strict compliance with the requirements of this Letter of Gledit reptsel as written: Berieficia understands and acknowledges: i that unless and until the resent wording-of this Letter of R Y rY:. 9 O P g GFedrt is arrten pc., with aeender's pnor written consent, the burden of complying strictly with such wording remains solely upon Benofrciary; and (ii)that lender is,relymg upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording is 7 NON SEVERAIRILITY' 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 seveeability;provision-shall override.all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit - . 8 CHOICE OF LA1Al%JMRISDICTIOM This Letter.:of Credit�s subject to the UCP: This Letter of Credit shall be governed by and construed in accordance with the laws of the State of '=o United States of America,except to the extent such laws are inconsistent with the UCP. Lender and Beneficiary consent ao the`.jurisdiction and'venue of any' court, selected by Lender in its discretion located in the State of lows in th&event of any legal proceeding under this Letter of Credit. j 9 ,"'kill. RATION i.end' -hereby agrees.with Beneficiary.thaf drafts drawn under and'in compliance with the terms of this Letter of Credit will be duly honored ff presehed fo the Lender on,or before the Expiration Date. Date 6, 2 Q 01 `LENQERx h FIRST AMERICAN BANK Ste, e Pres.ideat<;: Ames ENDORSEMENT OF DRAFTS DRAWN: Amount . Amount Negotiated By In Words In Figures t 1 A ij .. a MASTeG28 Four StlonTephno)oq)ea Inc.(e/3/98) RPO)937-3798 ' • ..t+�A.,.._.d,�'.pia.xr c....... ... .. ..., l ' >><>`<<><':><'>s>> < <` FIRST AMERICAN -IRREVOCABLE BANK 1207 Central Avenue-Box 798-Fort Dodge,IA 50501 CITY OF AMES LETTER OF 515-573-2154-Fax 515-573-8582 'LENDER" CREDIT ....:.:.:........................:::::..........:.. •... 10* .:#!a�sx sRl. ' 515 CLARK AVFNUB::.............:............. . ....................:............:.... 10093493 ..........................:,::::......:.:::...::..................::.. AMES, IOWA 50010 NO.: i4a ►l�piv«`:} `: `> ><< ':<>>'•'•>>``?ikia7`it 'irlQl <? <>'« > < ......................................................................................................... < ;>': . HUNZIKER LAND DEVELOPMENT CO., LLC This Letter of Credit shall expire upon the earlier of: RE: Northridge Heights, 6th Addition 1. the close of business on JUNE 5, 20.04 and all drafts and accompanying statements or documents :.; ::.;:..;;:.:.:.;:.::.::::.::.::::::.;:.>:•;::.>:.:...:..:.........:.:.;:.;:.;:.::.:.:.>:<.>:::.>:.>::<.>:.::;.:;.:•;:.:::•:.:::.::.:;>::.::.»:: presented a before at time;o must be pr nt to Lend r on or.b r that m , r 105'..,S:..:.,.,16TH STiiET 2. the day that Lender honors a draw under which the full AMES.....IA.....5.0 010.................:........................:........:...:........,::::::::::::. e of is > ::::>::»;>:>:;>;;:::.:•;::;:;::.::.::.:..::,.:.::..:.:..::....;:::;::»:.:;::::»::»::.>;:.:.>::<;.:; amount of this Letter Credit I drawn. ::> ► s?tfesle:t !<::<::::::>::::>:;>::::>::::>::::::>s:»>:::i::s:»: tw (i'! A !R:.4�;:>::;::»:::::;:<:::» 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 TWO HUNDRED THREE THOUSAND FIVE HUNDRED FIFTY-SIX AND N0/100 Dollars ($ 203,556.00 ), 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 Beneficj_W under the following terms and conditions: to0`f3 3 �J(,L4i✓ 61Q003 EACH DRAFT MUST STATE THAT.AIT IS-BRAWN UNDEW-*IRST AMERICAN MiK OF AMES LETTER OF CREDIT NO.. 44066W DATED FOR THE ACCOUNT QF ' . 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 ENDORSEDBY'•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 orany 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 party or under the name of any parry 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 retum 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. 10093493 DATED DUNE 5, 2003 °, 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,retum'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 . 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(judicial,administrative,or executive). LP-IA602 ©FomiMon Technologies,Inc. (3/10/93) (800)'937-3789 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: (1)that unless and until the present wording of this Letter of Credit is amended with tender'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'UCPJ 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 terms of this Letter of Credit will be duly honored if presented to the Lender on or before the Expiration Date. Dated:, DUNE:5, '2003. . LENDER: FIRST AMERICAN BANK BY:' 9T41130 D.)GOODEUE . TITLE: PRESIDENT ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures L NA802 0 FOmWticnl Technologies,Inc. (3/10/93) (800)937.3789