2006-07-25 LOC Engineer Note to Let Expire 422 (455)JUL-25-2006 7'JE 02: 48 P1 STEARNS BANK ST, CLOUD PAS; Nam, M0 253 3051 P. 0 i
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Ntemae, Foi`
July 25, 2006
City of Albertville
Attn: Tina Lannes
5975 Main Ave
P.0) Box 9
Albertville, MN 55301
RE: Finken Water, Inc:.
Letter of Credit #422
Effective date: July 215, 2006
Expiration date: August }5, 2006
Gentlemen:
We hereby establish our Irrevocable Letter of'Credit, numbered as indicated above, and, effective
immediately, in favor of the City of Albenville ("City"), at the request and for the account of Finken Water. Inc.
(the Developer) in the amount of and not to exceed Thirty Five Thousand Dollars and noi00's ($35,000.00')' as
such amount is decreased as provided below, available to you by sight draft of drafts drawn upon us ui
connection with guaranteeing payment of expenses incurred in preparing said plans arJ specifications for the
construction of the Site Improvements for the project known as Shoppes at Prairie Run.
Each draft drawn under this Letter of Credit must be accompanied by -
I. The original Letter of Credit;
2. A notarized statement executed by the City Engineer, stating that the Developer has failed to perfon-n ii:
accordans:e with the Development C_'ontmct, and that the City is entitled to draw upon the Letior of Credit.
Such statement shall set forth the defaults and the amount required to cure such default.
Each draft drawn under the Letter of Credit must:
I . Be signed on behalf of the City by the City Engineer or his (her) designee.
2. Be in the arnottrit required to cure the default by the Developer, arnount shall not exceed $35.000.00,
3. 13car on its facie the clause "DRAWN LTTDER LETTER OF CREDIT No. 412" dated July 25, 2006,
4. Be presented for payment dwing regular business hours at Stearns hank NA, 4191 2rd Street South, Si,
Cloud, MN 56301, no later than 12:01 13,M on August 25, 200b
S:earn, 6an4: Loc�ttii.ns. Albany. MN . Fdtna, MN . HuIcS n�±or,7, MN • tit. c 1au:L, n.r V ; n;;al::. MN! . rot;sda lle, ti:
JUii H-2006' 'FUE 02 : 48 IM ST ARNS E-4N , ST LOUD FAX 1140, 320 f a l 3061 P. o`
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 terms of this Letter of Credit will
be duly honored upon presentation.
Ex0ept as othei-Adse expressly states, this Letter of Credit is subject to the L�nifoi-m Customs and Practice for
Documentary Credits (1993'Revision), International Charnber of Commerce publications No. 500. As to
matters not govemed by the Uniforrn Customs, this fetter of Credit shall be governed by and construed in
accordance with the laws of 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 acid is not issued for the benefit of any third party c lainnant.
We shall not be called upon to resolve issues of fact or law between the Comrriission and the DNvelO Iper.
Ste,
By. -
Its Vice President
D'\)V:sy