2005-08-18 LOC Establish 6512-111AL
ALLIANCE BANK
IRREVOCABLE LETTER OF CREDIT NO 6512-111
DATE: August 18, 2005
FOR THE ACCOUNT OF: Contractor Property Developers Company
TO BENEFICIARY: City of Albertville
5975 Main Avenue
Albertville, MN 55301
RE: Towne Lakes 6th Addition - Grading
AMOUNT: $16.000.00
EXPIRATION: August 18, 2006
We hereby establish this as our Irrevocable Letter of Credit in favor of the City of
Albertville, hereinafter referred to as (the "Beneficiary"), at the request and for the
account of Contractor Property Developers Company, hereinafter referred to as (the
"Applicant"), available by your drafts at sight on up to, but not exceeding Sixteen
Thousand and 00/100 Dollars ( $16,000.00) in U.S. Currency.
Your draft must be presented to us on or before August 18, 2006 or any extended date,
and must be accompanied by the following:
1. Be signed by an authorized officer of the Beneficiary
2. Bear on its face the clause "Drawn under Alliance Bank Letter of Credit
Number 6512-111, dated August 18, 2005."
A notarized written statement, signed by the drawer of the draft, to the effect that
Contractor Property Developers Company is in default of the terms and
conditions pertaining to the grading for the Towne Lakes 6`h Addition
development project.
120 TOWN SQUARE A 444 CEDAR STREET A ST. PAUL MN 55101 A (651)229-0070 A FAX(651)229-0966
Irrevocable Letter of Credit No. 6512-111
Applicant: Contractor Property Developers Company
Beneficiary: City of Albertville
Page 2 of 2
3. A copy of Beneficiary's notice to Applicant of its intent to draw upon this Letter
of Credit.
4. Be accompanied by this Letter of Credit Number 6512-111.
We hereby agree that all drafts under and in compliance with the terms of this Letter of
Credit will be duly honored if drawn and presented for payment at our offices located at
120 Town Square, 444 Cedar Street, St. Paul, Minnesota 55101, by 3:00 p.m., Central
Standard Time, on or before the expiration date of August 18, 2006. However, this
Letter of Credit shall be void as to the portion payable if not presenied 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. 500, or any subsequent revision thereto.
Alliance Bank
By:
ane Turbes
Its: Vice President