2009-08-05 LOC Established 60017803Falcon
NATIONAL BANK
Member FDIC
August 5, 2009
City of Albertville
Attn: Tina Lannes
5975 Main Ave
PO Box 9
Albertville, MN 55301
RE: Finken Water, Inc.
Letter of Credit #60017803
Effective date: August 7, 2009
Expiration date: August 7, 2010
Gentlemen:
We hereby establish our Irrevocable Letter of Credit, numbered as indicated above and, effective
immediately, in favor of City of Albertville ("City"), at the request and for the account of Finken Water, Inc.
(the Developer) in the amount of and not to exceed Fifty Two Thousand Five Hundred Dollars and no/00's
($52,500.00), as such amount is decreased as provided below. This Letter of Credit is given to assure the
performance of Finken Water, Inc.'s obligations to the City under the Development Contract dated May 5, 2005
between Finken Water, Inc. and the City pertaining to the project known as the Shoppes at Prairie Run.
Each draft drawn under this Letter of Credit must be accompanied by:
1. The original Letter of Credit;
2. A notarized statement executed by the City Administrator, stating that the Developer has failed to perform
in accordance with the Development Contract, and that the City is entitled to draw upon the Letter 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:
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, amount shall not exceed $52,500.00.
3. Bear on its face the clause "DRAWN UNDER LETTER OF CREDIT NO. 60017803 dated August 7, 2009.
4. Be presented for payment during regular business hours at Falcon National Bank, 183 Cedar Drive, Foley,
MN 56329, no later than 12:01 PM on August 7, 2010.
Member
Q EDUALHDUSINGLENDEfl c��- , that c5'ztd� above the rest! FDIC
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.
Except as otherwise expressly states, this Letter of Credit is subject to the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce publications No. 500. As to
matters not governed by the Uniform Customs, this Letter 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 and is not issued for the benefit of any third parry
claimant.
We shall not be called upon to resolve issues of fact or law between the Commission and the Developer.
Falcon National Bank
(' Jessica Bitz
Its Senior Lender
08/06/2009 12:33 FALCON NATIONAL BANK (FAX)320 968 6500 P.0011003
183 Cedar Drive
Foley, MN 56329
Phone: (320) 968-6300
Fax: (320) 968-6500
Falcon
NATIONAL BANK
To: Tina From: Jessica Bitz
Fax: 763-497-3210
Date: 8/5/09
Phone: Pages:
Re: Finken CC:
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*Comments:
Tina — Attached is the renewal. Please send the old original back to me at the address
above. Thanks
FDIC