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IRREVOCABLE LETTER OF CREDIT NO. 13-95
EXPIRATION MAY 1, 19~~
May 1, 1995
City of Albertville
Attn: Linda Houghton
Box 131
Albertville MN 55301
RE: SUBDIVISION IMPROVEMENTS IN THE PARKSIDE ADDITION CITY
OF ALBERTVILLE AS REGULATED BY DEVELOPERS AGREEMENT
Gentlemen:
We hereby establish our Irrevocable Letter of Credit, numbered as
indicated above, and effective immediately upon the recording of
the Final Plat, in favor of the city of Albertville (the "city") at
the request and for the account of Kenco Construction, Inc. (the
"Developer") in the amount of and not to exceed Two Hundred Eleven
Thousand Two Hundred Thirteen Dollars and nO/100 ($211,213.00), as
such amount is decreased as provided below, available to you by
your signt draft or drafts drawn upon us in connection with the
completion of improvements in the Parks ide Addition City of
Albertville (the "Improvements") in the Development. Agreement
between the City of Albertville and Kenco Construction, Inc.
Each draft drawn under this Letter of Credit must be accompanied
by:
a) The original of this Letter of Credit;
b) A notarized draft executed by the City Administrator/or City
Clerk, the Developer is in default of the Development Agreement,
that the Developer has failed to complete the Improvements in
accordance with the terms of the Development Agreement, and that
the City is entitled to draw upon the Letter of Credit. Such
statement shall set forth the Improvements not completed, the
respect in which the Improvements have not been completed and the
amount required to cure such failure.
Each draft drawn under this Letter of Credit must:
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Letter of Credit No. 13-95
Page 2
1) Be signed on behalf of the City by the City Administrator or
his/or City Clerk;
2) Be in an amount required to cure the default by the Developer
to complete the Improvements, which amount shall not exceed
$211,213.00;
3) Bear on its face the clause: "Drawn under Letter of Credit No.
13-95, dated May 1, 1995";
4) Be presented for payment at this office no later than 1:00 PM,
on May 1, 1996, at which time this Letter of Credit shall expire.
This amount of the Letter of Credit shall be automatically reduced
in the amount of Fifty Seven Percent (57.0%) of the estimated cost
of the work completed as each portion of the Improvements is
completed and the City Engineer approved in writing such
completion. Each drawing hereunder shall reduce by the amount of
such drawings the amount available under this Letter of Credit.
We hereby agree that drafts drawn under and presented in conformity
with the terms of the Letter of Credit will be duly honored upon
presentation.
Except as otherwise expressly stated, this Letter of Credit is
subject to the Uniform Customs and Practice for Documentary Credits
(1983 Revision) International Chamber of Commerce Publication No.
400 (the "Uniform Customs"). This Letter of Credit shall be
governed by and construed in accordance with the laws of the State
of Minnesota, including the Uniform Commercial Code as in effect in
the State of Minnesota.
This Letter of Credit is not transferable or assignable and is not
issued for the benefit of any third party claimant.
We shall not be called upon to resolve issues of fact or law
between the Beneficiary and the Developer.
MINNEAPOLIS
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--Glen D Hardin
Senior vice President
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