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Home My WebLink AboutA033 - Email correspondence regarding letter of credit No. 80012 Diane R Voss/COA To Kellie Markey<markeykellie@yahoo.com> 02/17/2010 10:47 AM cc bcc Diane R Voss/COA Subject Re: Fw:ames`LOCD/1"', Kellie: / Our City Attorney has reviewed the LOC and provided me with the following report: 1. Since we have not done business with Legacy Bank, please provide a Certificate of Default. 2. In the last paragraph, the LOC must be subject to the [CC Uniform Customs and Practice for Documentary credits, 2007 Revision (not 1974). If you have any questions, please don't hesitate to ask. Thank you! Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames,.Iowa 50010 (515) 239-5105 /' r a, 1� Irrevocable Letter of Credit# 80012 Dated 02/15/2010 City of Ames 515 Clark Ames, 1A 50010 Attn: City Clerk-Diane Voss We hereby authorize the City of Ames, Iowa,to draw on Legacy Bank,Altoona,Iowa, 50009, for the account of the City of Ames,Iowa, up to the aggregate amount of USD$15,000.00 (Fifteen Thousand Dollars)available by your draft(s)at sight accompanied by the following documents: A written statement certifying that the terms of the Agreement for Public Improvements for the Airport Business Park Subdivision have not been fulfilled. Each draft must state that it is Drawn under Legacy Bank , Letter of Credit 480012 Dated 02/15/2010. This credit and all documents must accompany the draft(s). We hereby agree with you that draft(s) under and in compliance with the terms of this Letter of Credit will be duly honored on delivery of documents as specified if presented at this office in Altoona, Iowa, no later than . Annual renewals of this Irrevocable Letter of Credit will be issued automatically with final expiration of 02/1 5/20 1 1 1. Except as otherwise stated herein, this Irrevocable Letter of Credit is subject to the Uniform Customs and Practices for Documentary Credits per International Chamber of Commerce Publication No. 290 (1974 revision) and subject to the provision of the Commercial Code of the State of Iowa. Sincerely APPR f__jq &JI BY Brian'• . Chittenden,Exec. Vice President Lv"( Legacy Bank DO GLAS R. MAREK CITY ATTORNEY _,Alte0'na,Iowa _)FDIC Established 1904 TN_D; 502 8th St. S.W. 1201 Grant St. S. 12901 University Ave. 215 Center Ave. S. Box 309 Box 188 Box 71189 Box 670 Altoona,Iowa 50009-0309 Bondurant, Iowa 50035-0188 Clive, Iowa 50325-0189 Mitchellville, Iowa 50169-0670 515.967.9981 515,967.4949 515.226.3302 515.967.5141 Fax 515.967.9984 Fax 515.967.5432 Fax 515.226.3305 Fax 515.967.6091 LETTER OF CREDIT CHECK LIST 1. The issuer/bank issuing the letter of credit must be qualified to do business in the State of Iowa. This information may be verified through the Iowa State Department of Assessment and Taxation. 2. ✓ The letter of credit should have a date of issue or effective date on its face. 3. The beneficiary of the letter of credit is City of Ames,Iowa. 4. The correct names and addresses for the parties must be shown clearly on the letter of credit and indicate where the certification of default and sight draft should be sent in the event of default. 5. The letter of credit must be properly signed by a corporate officer, and corporate seat�ppiied, delivered, and-wimessed- 6. __JC The expiration date must be filled in and must be beyond the final completion and acceptance date of the contract. 7. ✓ Make sure that the issuer has submitted to jurisdiction and venue in the State of Iowa and Story County and to the contract dispute resolution process. 8. Make sure that a letter of credit amount is sufficient to meet the requirements of the solicitation. 9. G�Confirm that the written and numerical dollar values are correct and are consistent with the value of the contract. 10. Make sure the letter of credit is irrevocable. 11. �TIf the issuer/bank is not cal, make sure that there is a form sight dr ft and cgrtification of 1 default from the issuer. �'C� �S lS S �{�` I,J e SDK( 12. For questionable letters of credit,refer the letter of credit to the City Attorney. 13. Check procedural requirements for letter of credit to remedy contractor's default. (If the condition for the issuer's obligation is anything other than"contractor's default of any terms of the contract"or words to that effect,refer the letter.of credit to the City Attorney. 14. The City must have the original letter of credit. 15. The letter of credit mup be subject to the ICC Uniform Customs and Practice for Documentary credits,2 7 Revision. -__�O�a P e ate 23438.doc ' 1 Doug Marek/COA To Brian@BankLegacy.com o 02/22/2010 12:54 PM cc Diane R Voss/COA@COA bcc Subject Legacy Bank Letter of Credit Dear Brian: Thanks for talking with me today about the requirements that Legacy Bank has for payments on letters of credit. I have attached a form certificate of default that the City would propose to use in the unlikely event of a default on a letter of credit. If this form meets your requirements, or if you have an alternative form that you would propose to use, please let City Clerk Diane Voss know. PDF copy: Certificate of Default on LOC & Draft.form.wpd -25556.PDF Doug Marek Ames City Attorney 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Tel: 515-239-5146 Fax: 515-239-5142 E-mail: dmarek@city.ames.ia.us DRAFT DRAWN UNDER IRREVOCABLE LETTER OF CREDIT NO. , 20 , 20 Pay to the order of City of Ames,Iowa,the sum Dollars and 00/100 dollars .($ .00), drawn under Bank of Iowa Irrevocable Letter of Credit No. , dated , 20 CITY OF AMES, IOWA By: Douglas R. Marelc Ames City Attorney CERTIFICATE The undersigned hereby certifies that he/she is authorized to execute this certificate on behalf of the City of Ames, Iowa, the Beneficiary under that certain Letter of Credit No. , issued by Bank. The Beneficiary is entitled to draw the amount stated above for Street Improvements for , pursuant to the teens and conditions of the Agreement Pertaining to the Subdivision Platting and Development of Land in the City of Ames called CITY OF AMES, IOWA By: Douglas R. Marelc Ames City Attorney