1998-11-30 LOC 26-98
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November 30,1998
Your lndept!lldent
Community Bal1l\
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61
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IRREVOCABLE LETTER OF CREDIT NO. 26-98
City of Albertville
Attn: Linda Houghton
Box 131
Albertville, MN 55301
RE: SUBDIVISION IMPROVEMENTS IN THE KARSTON COVE, CITY OF
ALBERTVILLE AS REGULA TED BY THE DEVELOPERS AGREEMENT
We hereby establish our Irrevocable Letter of Credit #26-98, 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 Pilot Land Development Company (the "Developer") in the amount of Sixty
Thousand Dollars and 00/1 00 ($60,000.00), as such amount is decreased as provided below,
available to you by your sight draft or draft drawn upon us in connection with the completion of
streets, storm and sanitary sewers, water lines and site improvements in the Karston Cove
Addition, City of Albertville (the "Improvements") referenced in the Development Agreement
between the City of Albertville and Pilot Land Development Company.
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, stating the Developer is in default
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:
1) Be signed on behalf of the City by the City Administrator or his/her designed;
2) Be in an amount required to cure the default by the Developer to complete the
Improvements, which amount shall not exceed $60,000.00.
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November 30, 1998
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LoC 26-98
3) Bear on its face the clause: "Drawn under Letter of Credit No. dated November 30,
1998."
4) Be presented for payment at this office no later than 1 :00 P.M., on November 30, 1999, at
which time this Letter of Credit shall expire.
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
constructed 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.
Northeast Bank
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Thomas M. Beck
President