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HomeMy WebLinkAboutA029 - Letter dated June 15, 2005 releasing security with copies of letters of credit J • City Clerk's Office • 515 Clark Avenue,P.0.Box 811 Ap.g Ames,IA 50010 Phone: 515-239-5105 Exceptional Service Fax: 515-239-5142 June 15, 2005 Hunziker band Development Company 105 S. 16'h Street Ames, Iowa 50010 Attention Chuck Winkleblack RE: Taylor Glenn Subdivision, 1"Addition Dear Chuck: At their meeting of June 14, 2005, the City Council adopted Resolution No:05-251 accepting completion of the public improvements required for the above-named Subdivision. As a result, the financial security for public improvements on file with the City for this Subdivision has been released and is enclosed herewith. If you have questions,please contact the undersigned at 239-5105. Thank you. Sincerely, Diane Voss City Clerk /dry Enclosure ::.:':::Y:::•::::n,:::..::;•.;v:8':•i:• ....• '....131�SI.I»I;~t - FIRSTJ. CITY OF AMES FOR TAYLOR GLEN AMERICAN SUBDIVISION IRREVO� IBLE -BANK LETt'ER o�r Flxsr AMERICAN BANK 1530 SOUTH DUFF f ` ANTE IA 5001 (515)223-2033 "LENDER" . :::::.::::.::::::.::::::..,.:::::.:::.:.......................,.... 515 CLARK AVENIIE N0 ; 11056Q56 AMES IOWA 50010 ...:.....:.....:......................:...............:..:.. HUNZIKER LAND DEVELOPMENT COMPANY, L.L.C. This Letter of Credit shall.ex Ire u on the earlier of. t - 1. the close of business on Mav 10, 2005- and all drafts and accompanying statements or documents :..:::::::::.:::::.:................;:. .;:.;>:.::.:'.;::.::.;:.>;:>::»<>::>::>::>::>::>:<::<::::.::;::; must be presented to Lender on orr.before xhat tlrne.,or , ...: full 105 S. 1fiTH STREET 2. the day that Lender honors a:draw under which the AMES, IA 50010 amount of this Letter of Credit has been drawn Lender hereby establishes at the request and for the account.of Customer, an Irrevocable.Letter of Credit in favor of Beneficiary for:a sum of Sixteen Thousand and no/100 Dollars ($ 16,000 00 } These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lentler at Lender's address indicated above (or such other address that Lender may provide Beneficiary.in:writing) 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 UNAPI,.E TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER,YOU SHOULD CONTACT,THE CUSTOMER:IMMEDIATEL.Y,TQ SSE IF,TH LETTER OF CREDIT CAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO ti. 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: EACH DRAFT MUST STATE THAT IT IS "DRAWN UNDER FIRST AMERICAN 'BANK OF AME3 LEVER: OF CREDIT NO. 11056056 DATED 12/06/04 FOR THE ACCOUNT OF HUNZIKRR ;LAND DE.VELOPMFNT ,:; COMPANY, L.L.C." THE BANK AGREES WITH THE DRAWER, ENDORSERS; AND`:BONA :FIDL 'NOLb�',tS € ` OF ALL DRAFTS UNDER AND IN COMPLIANCE WITH THE TERMS ;OF :THIS. .IRREVOCAB E LRTTER ,OF kh 1 CREDIT THAT SUCH DRAFTS WILL BE HONORED UPON PRESENTATION. TO THE' D1iAWER THE =i s ORIGINAL LETTER OF CREDIT AS FIRST REQUIRED DOCUMENTS W.ILLVBE REPLACED }3Y YQUR y SIGNED STAETMENT WHICH WILL READ, "THE ORIGINAL LETTER, OF CREDIT HAS'NOT >3EEN 5 ENDORSED BY ANY PARTY FOR PAYMENT OF ANY PRIOR DRAFT." r - < e Upon Lender's honor of such drafts, Lender shall be fully discharged of its obligations under this:Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount_of credit available under this Letter of Credit has been drawn. If a non-conforming demand is made, Lender shall notify Beneficiary of Its dishonor on or before the time specified In Paragraph 5 below. x Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored:any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise n:order put which`is sjgried, issued, or presented by a parry or under the name of a party purporting to act for Beneficiary,.purpoiting to claim through I3epeficiaryi or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded In.accordance vyith this Letter of Credit,Ler�cJer makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary,or any other person, for any amount paid or disbursed for any reason whatsoever, "including, without. limitation,:..any nonapplicatron ar misappjicatiora 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 returli to Lender anyfuntls received by Beneficiary in excess of the Letter of Credit's maximum drawing amount 'z 3 w 2. USE RESTRICTIONS FIRST AMERICAN BANK. All drafts must be marked"DRAWN UNDER :1I056056} IRREVOCABLE LETTER OF CREDIT NO ,' j Pp►TED°r December 06, 2004 ,° and the amount of each draft shall be rharked,*on the draft: Only Beneficiary or i3enefiiorar�st Transferee (if this Letter of Credit is transferable) may complete a.draft and accompanying statements or'documetfa r'equiretf ;this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn h9reunper Partial draws are permitted are not permitted under this Letter of Credit. Lender's honor'of a partial ;wi w fall . correspondingly reduce the amount of credit available under this Letter.of Credit: Following a ptiaf draws Ireoder shall;�eturnil original Letter of Credit to Beneficiary with the partial draw noted hereon; in the,alternative, and m Its soleF dlsC►'etit;Lende�� eY issue a substitute Letter of Credit to Beneficiary in the amount shown above,less any partial drawls) '_ 3. PERMITTED TRANSFEREES ' , ' ❑ If checked,this Letter of Credit may be transferred by Beneficiary upon prior written notice to Lender Q theransfer�,� le TrnsfQrea r; shall be deemed the new Beneficiary of this Letter of Credit and the.documents:of the Transferee, Inc1t�dsngraft $egrrgdtGder this Letter of Credit,will be processed by Lender(or any intermediary)without the ongir7al Beneficiays Irt} �vantonand+enthocit�aTty further obligation of Lender to the original Beneficiary. ti 8 If checked,the right to draw under this Letter of Credit shall be nontransferable;except for s F °t t4 a9xs s r1,�2f `UR7 ❑ g A. A transfer (in its entirety, but not in part) by direct operation of law to the original Beneficiary'sadminlstrator�execUtoi`;gankrupl trustee,receiver, liquidator,successor,or other representative at law;and , t kN� ;;i��irs ;`�,� 5` ? ;t;' B. The first immediate transfer (in its entirety, but not in part) by:such legal representative to a third`Ap"O'n,aft a cpress �ovaT ot, Es ss r governmental body(judicial,administrative,or executive). : MAST602©FormAtlon Technologies,Inc. (8/3/86) (8M)837-3788 { " f °it.: F;}'`'s s'ig 4 TRANSFEREE'S REQUIRED DOCUMENTS When the presenter is a permitted Transferee under paragraph 3 above,the documents required for a draw shall include: A All documents reQurred elsewhere m this Letter of Credit,except that such documents may be in the name of and executed by either, a the ongmal Beneficiary or the„presenter permitted by.paragraph 3;and B When fhe presenter is a permitted Transferee under paragraph 3.A.or a third party under paragraph 3.B.,a certified copy of the one x y �"' QIMpre doqurnentS which show the presenter's authority to claim through or to act with authority for the original Beneficiary. S T�'�I�INO QF�1$iHQNQR K T;ti LettdQr may rely pop any reason,for dishonor which.it communicates to Beneficiary or the presenter within three(3) Banking Days after 3 LetideP has received the last document forming Beneficiary's presentment(the°Three-Day Period'). Lender shall be entitled to rely upon such reason without regard to either(i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the 5.Three Day`Penodof any preliminary communication(s)from Lender concerning the dishonor decision or any reason for dishonor. For any reason fortdishonor given,during the Three Pay 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 Pu�licatron P(o5b0� as most recently published by the International Chamber of Commerce (the °UCP°) may impose. The Expiration Date shallnot 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 Qate Lender shall not tie required.to communicate a_dishonor.decision or its reasons within a timer less than the Three-Day Period. '°BankingDay'`means any day,except$� turday,on which commercial banks located in Iowa are open. 6 COMPLIANCE BURDEN Lender is:not responsible for any impossibility.or other'diffrculty.in achieving strict compliance with the requirements of this Letter of Cretlit 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)tha.t Lender'is relying.upon the lack of such amendment as constituting Beneficiar}rs initial and continued approval of such wording 7 ,r.NON SEVERABILITY If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body havingJurisdiction, Lerader"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 positioneach would have occupied with all'rights available as though this Letter of Credit had never occurred. This fan severabrlity provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this er of Credit 8 CHQICE OF LAW/JURISrDICTION . 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 Iowa: , 'United of America,except to the extent such laws are inconsistent with the UCP. Lender arad Ben®ficiary 'consent to the:turisdiction and venue of any court selected by Lender in its discretion located in the State of ;Iowa: in the event of any legal proceeding under this Letter of Credit. �� 9 EXPIRATION 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 December-'.06, 2QQ4 CENQER FIRST.';AMERICAN .BANK By -- Stave :Goodhue:- Pres3dena, Ames ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date_ �legotrated By In Words In Figures t e' r S' y i 1 is r f kly - t MA$j902B 0 FormAtl4n Technalog7es Inc (9/3/QB) 3799 ($00)937 .. P-StST AMERICAN IRREVOCABLE BANK CITY OF AMES FOR TAYLOR LETTER OF GLEN SUBDIVISION 1207 Central Avenue-Box 798-Fort Dodge,IA 50501 CREDIT 515-573-2154-Fax 515-573-8682 ."LENDER" riCC 5;::::ics::::i sfi::;:::i::ti: "r.' FTMx:v1.%:' ... ii :: :: #::3;�:�i?:is?%: 515 CLAR'K AVENUE NO.: 10400394 AMES....:IOWA 50010 ::•::•»:>::>:>;>:::::::::::::::::.;.:::.;:.;:.,.:::.::;:::<:>;:>:::: s::::::s>>;::>: :::....::.::...:..::..:.. HUNZIKER LAND DEVELOPMENT This Letter of Credit shall expire upon the earlier of: COMPANY. L.L.C. 1. the close of business on MAY 10, Z005 and all drafts and accompanying statements or documents must be presented to Lender on or before that.time;or F3 a full 105 S 16TH STREET 2. the day that Lender honors a draw under which t. AMES'..:.=A..:.5:0:0:10<:< ; .:..::: :>::»:<::>>::::::>:>::>::>:. amount of this Letter of Credit is drawn. ::......:.::.;....:.:..:::•:rr::::::::r:;::;;;::;:::»>::»:>:::>;::::::►D1:�N'r�?If:1i't�3t�:i±i� ::>:`>?: >::>#:#<'s::>:�`::>#::# / Lender indicated above("Lender")hereby establishes at the request and for the account of Customer an Irrevocable Letter of Credit in OUR HUNDRED FIVE THOUSAND HUNDRED favor of Beneficiary for a sum or sums not exceeding the aggregate amount ofF405,117.00 ) SEVENTEEN AND NO 100 ' Dollars ($ 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. WARNINGTO BENEFICIARY:PLEASE EXAM INETHIS LETTEROF CREDITAT 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 NO. 10400394 DATED 05/10/04 FOR THE ACCOUNT OF HUNZIKER LAND DEVELOPMENT COMPANY, L.L.C." TER 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 QQ,R�%GINAL LETTER OF CREDIT AS FIRST REQUIRED DOCUMENTS 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." Upon Lender's honor of such drafts and payment to the Beneficiary,Lender,once the full amount of credit available under this Letterc Credit has been drawn,shall be fully discharged of its obligations under this Letterof Credit and shall not thereafterbe obligated to make an further payments under this Letterof Credit in respect of such demand for payments to Beneficiary or any other person. If a non-conformin 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 othe document which complies strictly with this Letter of Credit,and which on its face appears otherwise in order but which is signed, issued,c presented by any party or under the name of any party purporting to act for Beneficiary,purporting to claim through Beneficiary,or posing a Beneficiary' By paying to Beneficiary an amount demanded in accordance with this Letter of Credit,_Lender makes no representation as t the correctnessof the amount demanded and Lender shall not be liable to Beneficiaryor any other person for or in respect to any amount s paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of th proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will-n( present upon the other,unless and until.Beneficiary meets with dishonor. Beneficiary promises to return to Lender or a confirming bank ar funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. 2. USE RESTRICTIONS All drafts must be marked'PRAWN UND FIRST AMERICAN BANK IRREVOCABLE LETTER OF CREDIrt 100394 MAY 10, 2004 ",and the amount of each draft shall be marked on the draft. Only Beneficiaryor Beneficiary. Transferee(only if transferable)may complete a draft and accompanying statementsor documents required by this Letterof Credit an 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 sha correspondingly reduce the amount Iof credit available under this Letter of Credit. Following a partial draw,Lender shall,return thi original Letter of Credit to Beneficiary with the partial draw noted thereon;in the alternative,and in its sole discretion,Lender me 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. TF Transferee shall be deemed the new Beneficiary of this Letter of Credit and the documents of.the Transferee,including drat required under this Letter of Credit, are to be processed by Lender (or any intermediary)without the original'Beneficiar} 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 adiA sl�'ati�i etFecu'tor;`bankrupl trustee, receiver, liquidator,successor,or other representatives at law;and a. ,.ti•.r.;,_ _.. . B. .The first immediate transfer(in its entirety,but not in part)by such legal representative to a third party f e'-pre) approval o governmental body audicial,administrative,or executive). LP-IA602 ©FonnAtion Technologies.Inc. (3/10193) (800)937-3799 4. TRAN SF, .;cE'S REQUIRED DOCUMENTS When-thd 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,bishonor 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-DayPeriod"). 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 afterthe expiration date hereof. Nor shall Lender everbe required to communicate a dishonor decision or its reasons within a time less than the Three-DayPeriod. ."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 requirementsof this Letterof 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. S. CHOICE OF LAW/JURISDICTION The Uniform Customs and Practice for Documentary Credits as most recently published by the International Chamber of Commerce (hereinaftercalled 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 ofIOwA , United States of America, except to the extent such laws are incoppistent 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: MAY 10, 2004 LENDER: FIRST "AMERICAN BANK BY: JO A. -THIL TITLE: RNMIAMEW VICE PRESIDENT ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures APPRVONDP,AS TO FORM BY 75—ohri R. City A=nwy LP-IA602 ©FonnAtion Technologies,Inc, (3110/93) (800)937-3799