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Home My WebLink AboutA017 - Letter dated January 11, 2006 releasing Letter of Credit No. 11071204 with copy Cily Clerk's Office 515 Clark Avenue,P. O.Box 811 Caring People Ames,IA 50010 Qaaliry Programs Euepliaaal Service Phone: 515-239-5105 Fax: 515-239-5142 January 11, 2006 Nyemaster Law Firm 1416 Buckeye, Suite 200 Ames, Iowa 50010 Attention Deb Krauth RE: Taylor Glenn Subdivision, 2°a Addition Dear Ms. Krauth: At their meeting of September 12, 2006, the Ames City Council passed Resolution No. 06-368 accepting completion of public improvements and releasing the financial security for the above- named Subdivision. Enclosed is Irrevocable Letter of Credit No. 11071204 which has been released. Thank you for your assistance. If you have questions,please call. Sincerely, Diane Voss City Clerk /dry FIRST AMERICAN CITY OF AMES ,SANK IRREVOCABLE LETTER OF FIRST ANIERICAN BANK CREDIT 1530 SOUTH DUFF AMES, IA 50010 (515 223-2033 »:>.:»>:>::>:c::;»s::>::»>s:;::....::;:::::::;.:...A..........:...;;:.;.;:;:.;;:.;:.;>;;:.;:.;;:;:.;:.;;:.;::;.::.::::::::.::::::. LENDER ap4R 515 CLARK AVENUE AMES, IA 50010 NO.: 11071204 1'�L�PHONI;NO 1D1:IYhl:J�Y1710N NCI;....' `: Cus ronnr F;JfPIIfiAION :.DATE.... .... jHIINZIKER LAND DEVELOPMENT COMPANY, L.L.C. This Letter of Credit shall expire upon the earlier of: j 1. the close of business on Auaust 08 2006 I and all drafts and accompanying statementsor documents aQopaSa »; m be presented to Lender on or before that time; or _. must ME S.S, IA 50010 STREET AMES, 2. the day that Lender honors a draw under which the full TeLePHONFNa: tb ?►P1cAMONNtS 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 Beneficiaryfor a sum of.___Three Hundred_Thirteen Thousand Four Hundred and no/100 --------- Dollars ($ 313,400.00 ) 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. WARN[NGTO BENEFICIARY:PLEASE EXAMINE THIS LETTER OF CREDITAT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUI REMENTS,EITHER SINGLY OR TOGETHER,YOU SHOULD CONTACTTHE CUSTOMER I MMEDIATELYTO SEE IF THE LETTER OF CREDITCAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDITFOR 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: 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 Lenderfor 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 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 nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiarycertifiesthat 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 A14ERIC_AN BANK - -------------- _ IRREVOCABLE LETTER OF CREDLLd1L071204 August _08, 2005 and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's Transferee(if this Letterof Credit is transferable)may complete a draft and accompanying statementsor-documentsrequired 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 Letterof Credit. Following a partial draw, Lender shall return this original Letter of Credit to Beneficiary with 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 drawls). 3. PERMITTED TRANSFEREES I If checked,this Letterof Credit may be transferred by Beneficiary upon prior written notice to Lender 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 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. xJ 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 administrator,executor, 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 party after express approval of a governmental body (judicial, administrative, or executive). MAST602 u•;FormAtion Technologies.Inc. (9/3/88) (800)g37.37gg - 4. TRANSFEREE'S REQUIRED DOCUMENTS 9 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 Letterof Credit,except that such documents maybe in the name of and executed by either the original Beneficiary or the presenter permitted by paragraph 3; and B. When the presenteris a permitted Transfereeunder 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. TIMING OF DISHONOR Lender may rely upon any reason for dishonor which it communicates to Beneficiaryor the presenterwithin three(3)Banking Days after Lender has received the last document forming Beneficiary'spresentment(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 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, [CC 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 Beneficiary 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 initi,and both Lender and Ben ef iciary 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 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: August 08, 2005 LENDER: FIRST AMERICAN BANK B Steve - President, Ames ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Fi ures I MAST602B W FormAtion Technologles,Inc. (9/3/96) (800)937.3799