2000-05-17 LOC
MAY-17-2000 09 3:
612 786 6007 P 03 04
E G RUD & SONS INC
COlSlIUCTlOII flUICr, llC
783D MaIn strut, Suite 210. Milllt QrM. MN ~$
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IRREVOCABLE LETTER OF CREDIT NO. 200111 DATED MAY 17, 2000
Clty of AlbenvWe
S97S Mam Avenue
P.O. Box 9
Albertville, MN 55301
Dear Sir or Madam:
We hereby establish our IR.RBVOCABLli L:E'I'TBR. OF CREDIT, numbered as lnchcated
above. and effective tn:lmectiately, 1D favor of the CIty of AlbcrtVl11c (the "CIty") at the
request 1Dd. f'or the account of Edina Development ColpCDt1on. ("Developer) in the
amount of and. not to exceed Fifteen Thousand and 00/100 Dcllan (515,00000), as such
amount 1$ decreaaed as pro\'1d.cd below, available to you by your Sight draft or drafts
drawn upon 111 in connection WIth the comple11aD ot gadmg for the ptOjec.t to be known
as AlberM11as
Each draft d.rawn under the LETTER OF CREDIT must be accompamed by:
A. The ongmal or1his LBTTBll OP CREDIT,
B. A notarIZed statement executed by 1he City Admuustrator, stating that the
Developer is m default of the Development Agreement that the Developer
has faded to complete the Improvcrnonts in accord.ance with the =ms of the
Development Agreement. and. that the City is entitled to chaw l2pon the
LB'l"TER. OF CREDIT. Such statement shall set forth the Improvements not
completed, the respect in wblch the Improvemonts bad not been completed.
and the amount teqwred. to cure $Uch failure.
Eacl\ draft drawn under this LETTER. OF CREDIT must:
1 , Be SIgned on behalf of the City by the City AdminiStrator or hislher designee;
2 Be m the amount reqWe4 to cure the default by the Developer to complete the
Improvements. amount shall not exceed S lS.oo0.00
3. Bear on lts face the olause -DRAWN UNDER UTTER. OF CREDIT NO
200111, Dated May 17.2000.
,
MAY-1~-2000 09 33
612 786 6007 P 04/04
E.G.RUD & SONS INC
4 Be presented for payment 4WU11 reguw busmess hours at our Collettlcm
Department, 8150 Blue Oennan Road, Suite 13S~ ~ MN 5S 121, no later
than 2.00 p.m. on May 17, 2001, at which time tb1s LE'ITER OP CREDIT
shall expIre
The amO\lllt of this LEITER OP CREDIT shall be reduced by the amount of the
estimated cost of the work completed as each porhon of the Improvements are completed
and patd. for~ and the ell)' Engineer approves In writing such reduction. Each draWIng
hereunder shall reduce by tho amount of such drawmg the llmOUJ.1t available under this
LETI'ER Of' CREDIT
We hereby agree that drafts drawn und.er and pre.$ented. m confomuty wltb the terms of
the LE'ITER. OF CREDIT will be duly honored upon presentaUOll.
Bxcept as otherwise: expressly stated, tlu$ LET 1 BR OP CREDIT 15 subject to the
Umlarm Customs and Praetic:e for t'tocumentary Credits (1993 Revision) Intematlonal
Chamber of Commerce Publicatlons No. 500 (the .~niform Customs"). Thls LETTER
OF CREDIT shall be deemed to be a contract made under the laws of the State of
Mll1ne$ota. and, as to matters not governed by the lJDif'onn CUstoms, shall be govemed by
and eons1tUed in &QCOrdanoe WIth the laws of the State of Mmnesota, l:Dcluding the
Urufonn Commercial Code: as m effect in the Sate ofMmnesota..
This LEnER. OF CREDIT IS not tranSferable or ass1gnablc and 15 not Issued for the
benefit of' any third party claimant.
We shall not be called. upOl1 to resolve 1SS\1ed. of fact or law between the CIty and. the
Developer.
LAKELAND CONSTRUCTION FINANCE. LLC
BY~~~
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