2001-11-29 LOC Amended 16-01
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November 29,2001
**AMENDMENT TO LOC NO. 16-01**
Yrmr Imlllpenlienl
CGmm!tnily Balik
IRREVOCABLE LETTER OF CREDIT NO. 16-01
City of Albertville
Attn: Linda Houghton
P.o. Box 9
Albertville, MN 55301
77 Broadway N.E.
Minneapolis, MN 55413
612.379,8811
FAX: 612-362'3262
Member F.D.LC.
RE: CEDAR CREEK SOUTH 7TH ADDITION
We hereby establish our Irrevocable Letter of Credit N 0.16-01, effective immediately
upon the recording of the Final Plat, in favor of the City of Albertville (the "City") at the
request and for the account of Pilot Land Development Company (the "Developer") in
the amount of One Hundred Fifty Two Thousand Six Hundred Seventy-Four Dollars and
00/1 00 ($152,674.00), as such amount is decreased as provided below, available to you
by your sight draft or draft drawn upon us in connection with the completion of surety to
cover; landscaping, final paving, utility warranty, driveways and survey corners per the
development agreement in the Cedar Creek South 7th Addition, City of Albertville
(the Improvements") referenced in the Development Agreement between the City of
Albertville and Pilot Land Development Company
Each draft drawn under this Letter of Credit must be accompanied by:
a) The original of the Letter of Credit;
b) A notarized draft executed by the City Administrator, stating the Developer is
in default of the Development Agreement, and that the City is entitled to draw
upon the Letter of Credit. Such statement shall set forth the Improvements not
completed, the respect in which the Improvements have not been completed
and the amount required to cure such failure.
Each draft drawn under this Letter of Credit must:
1) Be signed on behalf of the City Administrator or his/her designed;
2) Be in an amount required to cure the default by the Developer to complete the
Improvements, which amount shall not exceed $152,674.00
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November 29,2001
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LoC 16-01
3) Bear on it's face the clause: "Drawn under Letter of Credit 16-01, dated
November 15,2001:
4) Be presented for payment at this office no later than 1 :00 P.M., on
November 15, 2002, at which time this Letter of Credit shall expire.
We hereby agree drafts drawn under and presented in conformity with the terms of the
Letter of Credit will be duly honored upon presentation.
Except as otherwise expressly stated, this Letter of Credit is subject to the Uniform
Customs and Practice for Documentary Credits (1983 Revision) International Chamber of
Commerce Publication No. 400 (the Uniform Customs"). This Letter of Credit shall be
governed by and constructed in accordance with the laws of the State of Minnesota,
including the Uniform Commercial Code as in effect in the State of Minnesota.
Thi's Letter of is not transferable or assignable and is not issued for the benefit of any
third party claimant.
We shall not be called upon to resolve issues of fact or law between the Beneficiary and
the Developer.
Northeast Bank
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G~i1'~ich
Executive Vice President and Cashier