2003-05-06 LOC
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CONSTRUCT/ON FINANCE, LlC
860 Blue Gentian Road, Suite 135, Eagan, MN 55121
Phone: (651) 994-4606 . Fax: (651) 994-7076
IRREVOCABLE LETTER OF CREDIT NO. 200205 DATED MAY 6, 2003
City of Albertville
5975 Main Avenue
PO Box 9
Albertville, MN 55301
Dear Sir or Madam:
We hereby establish our IRREVOCABLE LETTER OF CREDIT, numbered as indicated
above, and effective immediately, in favor of the City of Albertville (the "City") at the
request and for the account of Edina Development Corporation, ("Developer) in the
amount of and not to exceed One Million Three Hundred Fifty-One Thousand Six
Hundred Forty-Three and 00/100 Dollars ($1,351,643.00), as such amount is decreased
as provided below, available to you by your sight draft or drafts drawn upon us in
connection with the completion of certain improvements (the "improvements") for the
subdivision known as Albert Villas Sixth Addition, as such Improvements are described
in the Development Agreement between the City and the Developer.
Each draft drawn under the LETTER OF CREDIT must be accompanied by:
A. The original of this LETTER OF CREDIT;
B. A notarized statement executed by the City Administrator, stating that 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 had 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 designee;
2. Be in the amount required to cure the default by the Developer to complete the
Improvements, amount shall not exceed $1,351,643.00.
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3. Bear on its face the clause "DRAWN UNDER LETTER OF CREDIT NO.
200205, Dated May 6,2003.
4. Be presented for payment during regular business hours at our Collection
Department, 860 Blue Gentian Road, Suite 135, Eagan, MN 55121, no later
than 2:00 p.m. on May 6, 2004, at which time this LETTER OF CREDIT shall
expIre.
The amount of this LETTER OF CREDIT shall be reduced by the amount of the
estimated cost of the work completed as each portion of the Improvements are completed
and paid for, and the City Engineer approves in writing such reduction. Each drawing
hereunder shall reduce by the amount of such drawing the amount available under this
LETTER OF CREDIT.
We hereby agree that drafts drawn under and presented in conformity with the terrns 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 (1993 Revision) and the
International Chamber of Commerce Publications No. 500 (the "Uniform Customs").
This LETTER OF CREDIT shall be deemed to be a contract made under the laws of the
State of Minnesota and, as to matters not governed by the Uniform Customs, 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 issued of fact or law between the City and the
Developer.
By
LAKELAND CONSTRUCTION FINANCE, LLC
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Its Chief Operating Officer