2007-07-31 LOC
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IRREVOCABLE LETTER OF CREDIT
To:
City of Albertville
No: 31730626
Dated: July 31, 2007
Albertville, MN 55301
Re: Philip A. Morris
We hereby issue, for the account of Philip A. Morris 'Developer"), and in your favor, our
Irrevocable Letter of Credit No 31730626 in the amount of $723,250.00, available to you
by your draft drawn on sight on the undersigned bank as security for Developer's full and
complete compliance with the requirements set forth in that certain City of Albertville
Planned Unit Development/Conditional Use Agreement Albertville Marketplace between
the Developer and the City of Albertville, dated day of
2007 ("Developer's Agreement"). This Letter of Credit relates to all property governed
by said Developer's Agreement.
Each draft drawn under this Letter of Credit must:
(a) Be accompanied by the original of this Letter of Credit;
(b) Be accompanied by a notarized statement executed by the Clerk of the City of
Albertville stating that the Developer is in default of the Developer's Agreement and that
the City is entitled to draw upon the Letter of Credit. Such statement shall set forth the
basis for determining that the Developer is in default in the Developer's Agreement and
the amount required to cure such default;
(c) Be in an amount required to cure the default by the Developer, which amount
shall not exceed $723,250.00.
(d) Bear on its face the clause: "Drawn under Letter of Credit No. 31730626, dated
July 31, 2007.
(e) Be presented for payment at [Vermillion State Bank, 107 E Main St, Vermillion,
MN 55085] prior to the expiration ofthis letter of credit
This Letter of Credit shall automatically renew for successive one-year terms unless, at
least forty-five (45) days prior to the next annual renewal dated (which shall be July 31 st
of each year), Vermillion State Bank delivers written notice to the Albertville City Clerk
that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is
effective if delivered to, or sent by certified mail, postage prepaid, and deposited in the
U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed to,
the following address: City of Albertville, c/o City Clerk, P.o. Box 9, Albertville, MN
55301 and is actually received by the City Clerk at least thirty (30) days prior to the
renewal date.
This Letter of Credit sets forth in full our understanding which shall not in <>",.. --
modified, amended, amplified, or limited by reference to any document,
agreement, whether or not referred to herein.
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This Letter of Credit is not transferable or assignable. This is not a Notation Letter of
Credit. More than one draw may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform
Customs of Practice for Documentary Credits, International Chamber of Commerce
Publication No. 500.
We agree that drafts drawn under and presented in conformity with the terms of the
Letter of Credit will be duly honored upon presentation.
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By Le);t(.L>.
[Kevin Pedelty, Vice resident]