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HomeMy WebLinkAboutA015 - Irrevocable Letter of Credit No. 11070217 FI R :: ,.. :>::: ::Oln- +EIt«,aa .::: :::::.::::::. :AMERICAN CITY OF AMES ..........:::::::::::::::::::BANK IRREVOCABLE LETTER OF FIRST AMERICAN BANK CREDIT 1530 SOUTH DUFF AMES,IA 50010"LENDER" RE: EAST HICKORY PARK SUBDIVSION 51 223-2033 ::::::::::.:. ( 515 CLARK AVENUE NQ•• 11070217 AMES, IA 50010 ::LtrPHf>N A[13.::::.:::::::::.:::;;;:;:;;>:;::;;:;;:;:;•;::«. .....F7CAi10N HO MEN. .lJ.. . HICKORY PARK, INC. ::::::::::::�Q7tpN;}}Al >;:.;:.;:.;:.;;:<:.;;:.;:.;:; This Letter of Credit shall expire upon the earlier of: 1.:the close of business on July 25 2006 and all drafts and accompanying statementsor documents aa. . must be resented to Lender Q � de on or be fore or that 0. BOX 765 604�-t� i 2. the day'that Lender honors a draw under which the full EirFHCEN Nth, ...........:.; :;.;:::;:;: ;;In amount of this Letter of Credit has been drawn. Lender hereby establishes at the request and for the account of Customer,an.Irrevocable Letterof Credit in favor of Beneficiary for a sum ofNinety Four Thousand and no/100 Dollars ($ 94,000.00 ) These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender 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. WARNINGTO BENEFICIARY:PLEASE EXAMINE THIS LETTEROF CREDITAT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUI REM ENTS,EITHER SING LYOR TOGETHER,YOU SHOULD CONTACTTHE CUSTOMER I M M EDIATELYTO SEE IF THE LETTER OF CREDITCAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURETO 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: Failure of customer to complete public improvements as agreed to with -Beneficiary-for approval of the plat of subdivision for East Hickory Park Subdivision, Ames, Iowa. 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 Letterof Credit once the full amount of credit available under this Letterof 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. Beneficiary shall have no recourse against Lender for any amount paid under this Letterof 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 in order but which is signed, issued,or presented by a party or under the name of a party purporting to act for Beneficiary,purporting to claim through Beneficiary,or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit,Lender makes no representation as to the correctnessof 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 nonapplication or misapplication by Beneficiaryof the proceeds of such payment. By presenting upon Lenderor a confirming bank, Ben eficiary certifies that Beneficiaryhas not ;.and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender 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 HANK IRREVOCABLE LETTER OF CREDIT[4 070217 July 25, 2005 "and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's -- TransfarPe(if thl- LB tar of (rQdlt is+r3esfAr�nls),,ay�vr�plet�a-d• ;t_anu ac,,o,„pany r sta* , Lr,'sery vmarts-�eyuired-i?y-�-pis— — 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 Letterof Credit. Following a partial draw, Lender shall return this original Letter of Credit to Beneficiarywith the partial draw noted hereon; 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 ❑ If checked,this Letterof Credit may be transferredby Beneficiary upon prior written notice to Lender of the transfer. The Transferee shall be deemed the new Beneficiary of this Letterof Credit and the documents of the Transferee,including drafts required under this Letterof Credit,will be processed by Lender(or any intermediary)without the original Beneficiary's intervention and without any further obligation of Lender to the original Beneficiary. ® If checked,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 lawto the original Beneficiary's cutor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law,and B. The first immediate transfer(in its entirety,but not in part)by such legal representativeto a third parfyafter.express approval of a governmental body Qudicial, administrative, or executive). MAST602©FormAtion Technologies,Inc. (9/3/98) (300)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 elsewherein this Letterof 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 B. When 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. J 5. TIMING OF DISHONOR I Lender may rely upon any reason for dishonor which it communicates to Beneficiaryor the presenterwithin three(3)Banking Days after i Lender has received the last document forming Beneficiary's presentment(the"Three-DayPeriod"). 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 Three-DayPeriod of any preliminary communication(s)from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor 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 Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No 500, as most recently published by the International Chamber of Commerce(the"UCP")may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three(3) Banking Days before the Expiration Date,and Benef iciary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw afterthe Expiration Date. Lender shall not be required to communicate a dishonor,decision or its reasons within a time less than the Three-Day Period. "Banking Day"means any day,except Saturday,on which commercial banks located in Iowa are open. 6. COMPLIANCE BURDEN Lender is not 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 Letterof Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letterof Credit shall be deemed null and void ab initio,and both Lender and Beneficiaryshall 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 this Letter of Credit. 8. CHOICE OF LAW/JURISDICTION This Letterof Credit is subject to the UCP. This Letterof Credit 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 selected by Lender in its discretion located in the State of Iowa in the event of any legal proceeding under this Letterof 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: July 25, 2005 LENDER: FIRST AMERICAN BANK B Stev o e President, Ames ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures ®A3,T0 FONT Jo i a CRy Y MAST602B®FormAtion Technologies,Inc.(9/3196) (800)937.3799 -