2003-07-09 LOC 6512-93
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ALLIANCE BANK
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IRREVOCABLE LETTER OF CREDIT NO. 6512-93
DATE:
July 9, 2003
FOR ACCOUNT OF:
Contractor Property Developers Company
TO BENEFICIARY:
City of Albertville
5975 Main Avenue N.E.
P.O. Box 9
Albertville, MN 55301
RE:
Towne Lakes - 3rd Addition
Grading Agreement
AMOUNT:
$40,000.00
EXPIRATION:
November 9, 2003
We hereby establish this as our Irrevocable Letter of Credit in favor of you, your
transferee, nominee or assignee, at the request and for the account of Contractor
Property Developers Company, a Minnesota Corporation, hereinafter referred to as (the
"Applicant"), available by your drafts at sight on up to, but not exceeding Forty
Thousand and 00/100 US Dollars ($40,000.00) in U.S. Currency.
Your draft must be presented to us on or before November 9, 2003 and be accompanied
by:
1. Be signed by an authorized officer of the Beneficiary
2. Bear on its face the clause "Drawn under Alliance Bank Letter of Credit
Number 6512-93, dated July 9,2003."
3. A notarized written statement, signed by the drawer of the draft, to the effect that
Contractor Property Developers Company, a Minnesota Corporation, has not
completed the required improvements as defined in that certain Grading
Agreement between the City of Albertville and Contractor Property
Developers Company and that amount of such draft is due and owing the drawer
in accordance with said Agreement
120 TOWN SQUARE ... 444 CEDAR STREET ... ST. PAUL MN 55101 ... (651)229,0070 ... FAX(651)229-0966
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Irrevocable Letter of Credit No. 6512-93
Applicant: Contractor Property Developers Company
Beneficiary: City of Albertville
Page 2 of2
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4. A copy of Beneficiary's notice to Applicant of its intent to draw upon this Letter
of Credit.
5. Be accompanied by this Letter of Credit Number 6512-93.
We hereby agree that all drafts under and in compliance with the terms of this Letter of
Credit will be duly honored if drawn and presented for payment at our offices located at
120 Town Square, 444 Cedar Street, St. Paul, Minnesota 55101, by 3:00 p.m., Central
Standard Time, on or before the expiration date of November 9, 2003. However, this
Letter of Credit shall be void as to the portion payable if not presented by the close of
business on the expiration date.
It is a condition of this Letter of Credit that it shall be automatically extended without
amendment for a four (4) month period upon the Expiration Date and upon each
anniversary of the Expiration Date, unless at least thirty (30) days prior to the Expiration
Date or anniversary thereof, Alliance Bank notifies Beneficiary and Applicant in writing
by registered mail that Alliance Bank elects not to so extend this Letter of Credit for any
additional period.
The Letter of Credit shall be governed in all respects by the laws of the State of
Minnesota, including the Uniform Commercial Code in effect in said State.
Except as otherwise stated herein, the Letter of Credit is subject to the Uniform Customs
and Practices for Documentary Credits (1993 Revision), International chamber of
Commerce Publication No. 500, or any subsequent revision thereto.
Alliance Bank
By:
Lf~
Une L. Turbes
Its: Vice President