2005-12-20 LOC Established 6512-117ALLIANCE BANK
IRREVOCABLE LETTER OF CREDIT NO. 6512-117
December 20, 2005
City of Albertville
c/o City Clerk
Post Office Box 9
Albertville, Minnesota 55301
To Whom It May Concern:
We hereby establish this as our Irrevocable Letter of Credit in favor of City of
Albertville, a Minnesota statutory city, hereinafter referred to as ("Beneficiary") at the
request and for the account of Contractor Property Developers Company, hereinafter
referred to as ("Applicant"), in the amount of Six Hundred Fifty Two Thousand Four
Hundred Eight and 00/100 Dollars ($652,408.00) available to you by your draft(s) at sight
drawn on us and meeting the following requirements:
1. Such draft shall be signed by an authorized officer of the Beneficiary;
2. Such draft shall bear on its face the clause "Drawn under Letter of Credit No. 6512-
117, dated December 20, 2005";
3. Such draft shall be presented for payment during regular business hours at Alliance
Bank, 120 Town Square, 444 Cedar Street, St. Paul, Minnesota 55101, no later
than 3:00 p.m., Central Standard Time, on December 20, 2006, after which time
this Letter of Credit will be null and void, it being a condition of this Irrevocable
Letter of Credit that it shall be automatically extended for periods of at least one (1)
year from the present expiration date, as set forth above, and each future expiration
date hereunder, unless, at least sixty (60) days prior to the relevant expiration date,
we notify you, by certified mail at the above address or such other address that you
advise us of in writing, that we elect not to extend this Irrevocable Letter of Credit for
any additional period;
4. Such draft shall be accompanied by this Letter of Credit, and
5. Such draft shall be accompanied by a notarized written statement by an authorized
representative of the Beneficiary stating Contractor Property Developers Company, is
444 CEDAR STREET - SUITE 120 A ST. PAUL, MN 55101 (651)229-0070 -- FAX (651)229-0966
Irrevocable Letter of Credit No. 6512-117
Contractor Property Developers Company ("Applicant")
City of Albertville ("Beneficiary")
Page 2
in default of its obligations to Beneficiary under the terms of that the Planned Unit
Development Agreement, dated December 19, 2005 (the "Agreement") and the
amount of such draft is due and owing the Beneficiary in accordance with the terms
of the Agreement.
This Letter of Credit is not assignable or transferable by endorsement or in any other
manner. This Letter of Credit sets forth our full understanding which shall in no way be
modified, amended, amplified or limited by reference to any other documents, instrument
or agreement, whether or not referenced to herein.
This Letter of Credit is subject to the Uniform Customs and Practices for Commercial
Documentary Credits (1993 Revision), International Chamber of Commerce Publication No.
500. To the extent that it is not consistent with said Publication No. 500, this Letter of
Credit shall be construed and interpreted in accordance with the laws of the State of
Minnesota, including the Uniform Commercial Code in effect in said State.
We hereby agree that drafts drawn under and in compliance with the terms of this
Letter of Credit will be duly honored upon presentation. We are not to be called upon to
resolve issued of law or fact between Beneficiary and Applicant.
Very Truly Yours,
rian C. Mallak
Vice President
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