2010-05-10 LOC Hand Delivered DocumentsA I VQer 1 V� 11c 5959 Main Avenue NE - P.O. Box 9 -Albertville, MN 55301 - 763-497-3384 -Fax 763-497-3210
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May 10, 2010
VIA HAND DELIVERY
Jason R. Pass, VP
Alliance Bank
55 East Fifth Street
Suite 115
St. Paul, MN. 55101
Re: City of Albertville; Towne Lakes 6th Addition
Dear Sirs:
Accompanying this letter are the following original documents:
1. The original Letter of Credit No. 6512-117 dated December 20, 2005 of
Alliance Bank issued on.account of Contractor Property Developers
Company;
2. Affidavit of Tina Lannes;
3. Site Draft of City of Albertville in the amount of $74,103.48; and
4. Receipt of Letter of Credit Materials from Tina Lannes.
Please disburse $74,103.48 as a draw on the letter of credit to the City of
Albertville and return the original letter of credit to the City, or, in the alternative,
return a new letter of credit in the amount of $194,534.50 in the same form as the
Letter of Credit No. 6512-117 and with an expiration date not sooner than
Deca�nA,ea ao, a�ta . Thank you.
Sincerely,
Tina Lannes
Finance Director
City of Albertville
ALLIANCE 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 1-� SUITE 120 A ST. PAUL,IVN 55101 d. (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
F:\users\Janice\GAB\Alliance\Contractor Property Developers\Town Lakes - 6th & 7th Addition\Letter of Credit.doc
CITY OF ALBERTVILLE
WRIGHT COUNTY
STATE OF MINNESOTA
AFFIDAVIT OF TINA LANNES IN SUPPORT OF
DRAW UNDER LETTER OF CREDIT NO.6512-117 DATED DECEMBER
20, 2005 OF ALLIANCE BANK
State of Minnesota )
) ss.
County of Wright )
I, Tina Lannes, being the Finance Director for the City of Albertville, Wright
County, Minnesota, Beneficiary of Irrevocable Letter of Credit No. 6512-117 dated
December 20, 2005 of Alliance Bank, being first duly sworn, deposes and says that
Contractor Property Developers Company is in default of its obligations to the City
of Albertville under the terms of that Planned Unit Development Agreement, dated
December 19, 2005 (the "Agreement") and the amount of $74,103.48 is needed to
cure the default related to the installation of a water line by the City.
WITNESS my hand as the Finance Director for the City of Albertville,
Wright County, Minnesota this 1 Oth day of May, 2010.
Tracey Nubbe
Notary Public
.. .` Minnesota
"My Commission Expires January 31, 2012
Subscribed and sworn to before
me this4Publi
f May, 2010.
otary
Tina Lannes
City Finance Director
Date: May 10, 2010
USD $74,103.48
SIGHT DRAFT
At sight, pay to the order of the City of Albertville the amount of $74,103.48 U.S. Dollars Drawn under
Letter of Credit Number 6512-117 dated December 20, 2005 of Alliance Bank,
TO:
City of Albertville
Tina Lannes, Finance Director
5959 Main Avenue NE �� C'
PO Box 9--- Authorized Signature, Drawer
Albertville, Minnesota 55301
(endorse on reverse)
n>�—
RECEIPT OF LETTER OF CREDIT MATERIALS
FROM TINA LANNES, FINANCE DIRECTOR
FOR THE CITY OF ALBERTVILLE
Received of Tina Lannes, City of Albertville Finance Director, the following
original documents:
1. Irrevocable Letter of Credit No. 6512-117 dated December 20, 2005 of
Alliance Bank;
2. Affidavit of Tina Lannes dated May 10, 2010 in support of draw on Letter
of Credit No. 6512-117;
3. Site Draft of City of Albertville in the amount of $74,103.48; and
4. Letter from Tina Lannes requesting Alliance Bank to disburse $74,103.48
to the City of Albertville as a draw on Letter of Credit No. 6512-117 dated
December 20, 2005
May , 2010
By:
Title:
Alliance Bank