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HomeMy WebLinkAboutA007 - Irrevocable Letter of Credit No. 11075257 dated October 25, 2005 - $342,890 FIRST CITY of AMES' NEIIMFtif 01% AMERICAN IRREVOCABLE K LETTER OF FIRST AMERICAN BANK CREDIT 1530 SOUTH DUFF AMES,IA 50010 RE:: Nort_h edge.. He' 9th .44dlt.�;4n (515)223-2033 "LENDER" aS - 515 CLARK AVENut AMES, IA 50010 NO.: 11075257 1LPPftONE.NO Ibi N71P1CAI10N NO. CU5TCMEF� j! > HUNZIKER LAND DEVELOPMENT COMPANY, L.L.C. This Letter of Credit shall expire upon the earlier of: 1. the close of business on October 25, 2006 and all drafts and accompanying statementsor documents anp�ISs:, must be presented to Lender on or before that time; or ... 105 S. 16th STREET 2. the day that Lender honors a draw under which the full AMES, IA 50010 reN�Nd )bcAttoNiNsS. amount of this Letter of Credit has been drawn. Lender hereby establishes at the request and for the account of Customer,an Irrevocable Letterof Credit in favor of Beneficiary for a sum of Three Hundred Forty Two Thousand Eight Hundred Ninety and no/100 Dollars ($ 342,890.00 ). 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 REMENTS,EITHER SINGLY OR TOGETHER,YOU SHOULD CONTACTTHE CUSTOMER IMMEDIATELYTO 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: A written statement by the Director of Public Works, for the Beneficiary, that the construction of public improvements required for approval o.f_the plat of subdivision for Northridge Heights, 9th Addition,to the City of Ames ,Zs(_n-ot,_complete. 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. 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 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 Lender or a confirming bank, Ben ef iciary 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 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. October 25, 2005 "and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's Transferee(if this Letter of Credit is transferable)may complete a draft and accompanying statementsor 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 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 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. ® 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). MAST802©Formmion Technologies,Inc. (9/3/o) (800)937-3799 - City Clerk'sOffice 515 Clark Avenue,P. O.Box 811 Ca'ing People Aisles,IA 50010 Quality Prog— Exceptional Service Phone: 515-239-5105 Fax: 515-239-5142 September 13, 2006 Nyemaster Law Firm 1416 Buckeye, Suite 200 Ames, Iowa 50010 Attention Deb Krauth RE: Northridge Heights Subdivision, 9'Addition Dear Ms. Krauth: At their meeting of September 12, 2006, the Ames City Council passed Resolution No. 06-366 accepting completion of public improvements and releasing the financial security for the above- named Subdivision. Enclosed is Irrevocable Letter of Credit No. 11075257, which has been released. Thank you for your assistance. If you have questions, please call. Sincerely, Diane Voss City Clerk /dry City Clerk's Offlee 515 Clark Avenue,P.O.Box 811 Caring 1 typ�gra,� Ames,IA 50010 Exceptional Service Phone: 515-239-5105 Fax: 515-239-5142 October 25, 2005 TO WHOM IT MAY CONCERN: I,Diane R. Voss,hereby certify that I have this date received from Hunziker Land Development Co., LLC., a Letter of Credit in the amount of$342,890 Said instrument has been placed on file in the Ames City Clerk's Office, 515 Clark Avenue, for the development ofpublic improvements in Northridge Heights Subdivision,9th Addition,City of Ames, Iowa. By: (LZ�TU of Diane Voss Title: City Clerk "Chuck Winkleblack" To <DVoss@city.ames.ia.us>, <JJoiner@city.ames.ia.us>, <Chuck.Winkleblack@hunzik <kirsten.alm@FABG.net>, "Amy Brekke" er.com> <Amy.Brekke@hunziker.com>, <DSK@nyemaster.com> 10/24/2005 02:48 PM cc bcc Subject letter of credit Kirsten and all, Please prepare a letter of credit for Hunziker Land Development for Northridge Heights 9th addition. I need it as soon as possible. It is to the City of Ames for one year from the date it is originated. This can be done on the banks letter of credit form. It is for paving $327, 890 street lights $ 15, 000 Total of $3 84 90 Please call me if you have any questions. Sincerely, Chuck Winkleblack Broker Associate License #B32796000 Hunziker L Associates 105 S. 16th Street Ames, IA 50010 515-233-4450