2003-10-03 LOC
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ALLIANCE BANK
IRREVOCABLE LETTER OF CREDIT NO. 6512-95
DATE:
October 3, 2003
FOR ACCOUNT OF:
Contractor Property Developers Company
TO BENEFICIARY:
Linda Goeb
City of Albertville
5975 Main Avenue
Albertville, Minnesota 55301
RE:
City of Albertville
Master Planned Unit Development Agreement
Towne Lakes Third Addition
AMOUNT:
$1,345,400.00
EXPIRATION:
October 3, 2004
We hereby establish our Irrevocable Letter of Credit in favor of the City of Albertville ("City"),
available by your drafts at sight on up to, but not exceeding One million three hundred forty
five thousand four hundred and 00/100 Dollars ($1,345,400.00) in U.S. Currency for the
account of Contractor Property Developers Company, a Minnesota Company ("CPDC").
Your draft must be presented to us on or before October 3, 2004, or any extended date, and be
accompanied by the following:
1. This Irrevocable Letter of Credit No. 6512-95; and
2. A statement signed by the drawer of the draft to the effect that CPDC is in default of the
terms and conditions in the City of Albertville Master Planned Unit Development Agreement
Towne Lakes Third Addition, dated a..+z,~ '"J. 'Zoo~, ("Agreement") for the First
Phase of Towne Lakes Phase II to be platted as ToWne Lakes Third Addition, regarding the
Master Developer's portion of the city's public improvements and the developer's
improvements, issued between the City and CPDC and that the amount of such draft is due
and owing the drawer in accordance with the terms of said Agreement.
All drafts must bear the clause; "Drawn under Alliance Bank Letter of Credit No. 6512-95,
dated October 3, 2003"
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. 6512-95
Contractor Property Developers Company
City of Albertville
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We hereby agree that all drafts under and in compliance with the terms of the Letter of Credit
will be duly honored if drawn and presented for payment at our office located at 120 Town
Square, 444 Cedar Street, Saint Paul, Minnesota 55101 by 3:00 p.m. on or before the expiration
date of October 3, 2004. 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 for additional periods
of one (1) year from the present or each future expiration date unless sixty (60) days prior to such
date you are notified in writing by registered mail at the afore mentioned address that Alliance
Bank elects not to renew this Letter of Credit for additional periods.
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. 400.
Sincerely,
h;i-~
Jane L. Turbes
Vice President