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HomeMy WebLinkAboutA023 - Letter dated August 26, 2009 regarding release of financial security • 515 Clark Avenue,P. 0.Box 811 CaringPcgpl Ames IA 50010 Quality p-g-- �tia�at 1 Phone: 515-239-5105 Fax: 515-239-5142 August 26, 2009 Hunziker&Associates 105 S. 16ch Street Ames,Iowa 50010 Attention Chuck Winkleblack RE: Northridge Heights Subdivision, 11'Addition Dear Chuck: At their meeting of August 25, 2009, the City Council accepted completion of the public improvements for Northridge Heights Subdivision, 1 l'Addition, and released the security being held therefor. Enclosed is the released Irrevocable Letter of Credit No. 11129612 in the amount of$16,500. If you have questions,please call. Sincerely, Diane Voss City Clerk /dry Enclosure G ....... :::::::.:::::::::::::::::::::::::::::::. FIRST ER/CAN AWK— CITY OF AMES IRREVOCABLE LETTER OF FIRST AMERICAN BANK CREDIT 1530 SOUTH DUFF AMES,IA 50010 :::::.:::::::::::::::::::::::::.:::::::::.:::::::.:..:.........:...::.::.::.::.::.::.::.::.::.::...........;:. (515 233-2033 LENDER 5............................................:..:.:.... 515 CLARK AVE �Qo; 11129612 AMES, IA 50010 ............................................................................................................................... >T % PHESt1�:`.NQi?: ??? G?<:?> ....?`?. IUEN7E�1CA710N Nb > :':'i'3':'i'i i; it::i C'ST :M .'::>>::::'.:' '' ?:::`:EX.?IAA-TI F:: ATE HUNZIKER LAND DEVELOPMENT COMPANY, L.L.C. This Letter of Credit shall expire upon the earlier of: 1. the close of business on October 01, 2009 and all drafts and accompanying statements or documents must be presented to Lender on or before that time, or 16TH STREET 2. the day that Lender honors a draw under which the full AMES, IA 50010 tD Ca7�dNN ,..: amount of this Le tter of Credit has been drawn..>:N Lender hereby establishes at the request and for the account of Customer,an Irrevocable Letter of Credit in favor of Beneficiary for a sum of Sixteen Thousand Five Hundred and no/100 Dollars ($ 16,500.00 ), 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 EXAMINETHIS LETTEROF CREDITAT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS,EITHER SINGLY OR TOG ETHER,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 Upon Lender's honor of.,sucl .draffs;.')=e''6`der 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 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, Beneficiary 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 0JO129612 October 01, 2008 ,"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 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 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. ❑S 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 law to 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©Harland Financial Solutions,Inc.(215/08) (800)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 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 presenter is a permitted Transfereeunder paragraph 3.A.or a third parry 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 reasons for dishonor which it communicates to Beneficiary or the presenter within five(5) Banking Days following Lender's receipt of the last document forming Beneficiary's presentment(the"Five-DayPeriod"). Lender shall be entitled to rely upon such reasons without regard to either(i)the timing of any presentment made before the Expiration Date,or(ii)the timing inside the Five-Day Period of any preliminary communications from Lender concerning the dishonor decision or any reason for dishonor. The Expiration Date shall not be extended to accommodate a presentment made.less than five(5)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 is not required to communicate a dishonor decision or its reasons within a time less than the Five-Day Period. Banking Day means any day, except Saturday, on which commercial banks located inlowa are op 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 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 this Letter of Credit. 8. CHOICE OF LAW/JURISDICTION This Letterof Credit is subject to the Uniform Customs and Practice of Documentary Credits,2007 Revision,ICC Publication No.600(the "UCP"). This Letter of 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, except as otherwise provided above. Dated: October 01, 2008 APP VEDASTOFORM LENDER: FIRST AMERICAN BANK BY D UGLAS R.MA EK CITY ATTORNEY B Steve ue Regional President ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures MAST602B©Harland Financial Solutions,Inc. (2/5/08) (800)937-3799