1988-08-15 LOC Established
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STATE BANK of St. Michael
701 CENTRAL AVE. EAST
AND ALBERTVILLE FACILITY
ST. MICHAEL, MINNESOTA 55376
PHONE
ST. MICHAEL - 497-2131
ALBERTVILLE - 497-3525
IRREVOCABLE STANDBY LETTER OF CREDIT
August 15, 1988
City of Albertville
P.O. Box 131
Albertville, MN 55301
Re: Our Irrevocable Letter of Credit No. 26963
Amount: $10,120.00 U.S. Funds
Gentlemen:
We hereby establish, at the request and for the account of Braun
Development, Inc., a Minnesota corporation, in your favor, this
Irrevocable Standby Letter of Credit, numbered as indicated
above, in the amount of and not to exceed Ten Thousand
One-Hundred Twenty and No/100 ($10,120.00) U.S. Funds (the
"Stated Amount"), available by negotiation of your draft or
drafts drawn at sight upon Security State Bank of st. Michael for
said amount or less, effective immediately.
A draft drawn under this Letter of Credit must:
(1) Be signed by the City Administrator of the City of
Albertville;
(2) Bear on its face the clause, "Drawn under Braun
Development, Inc. Irrevocable Standby Letter of Credit
No. 26963, dated August 15, 1988; and
(3) Be accompanied by a Certificate purportedly signed by
the City Administrator of the City of Albertville
stating:
"We are drawing ,under your Standby Letter of
Credit No. 26963 as Braun Development, Inc. has
failed to complete one or more of the following
construction requirements as set out in the
Developer's Agreement for Braun's Addition. Under
the terms of the Development Agreement dated the
11th day of August, 1988, between the City of
Page 2
Albertville and Braun Development, Inc., the City
is entitled to the unreleased portion of this
Standby Letter of Credit to be used to complete
said improvements (indicate all item(s) and check
which item(s) apply to the drawing:
[] (a)
[] (b)
[] (c)
[] (d)
Boulevard Improvements.
Grading control.
Street signs.
Street cleaning.
(4) Be accompanied by the original Letter of Credit for
endorsement.
Drafts and drawing certificates which otherwise conform to the
terms and conditions hereof shall be deemed to be proper if
presented on or before the appropriate time specified under
SPECIAL CONDITIONS, paragraph 1.
SPECIAL CONDITIONS:
1. Time of Drawings. Demand for payment may be made by
you under this Letter of Credit by original documentation
presented at any time during our business hours at our office
located at 701 Central Avenue East, st. Michael, Minnesota
55376, or our Albertville facility in Albertville, Minnesota, on
any day upon which banks located in the State of Minnesota are
not required or authorized to remain closed (a "business day").
If demand for paYment hereunder is received by us at or prior to
12:00 noon on a Business Day, and provided that such demand for
payment in the documents presented therewith conform to the terms
and conditions hereof, we shall authorize the payment to you of
the amount demanded on or before noon on the next Business Day;
if any such demand for payment is received by us after noon on a
Business Day, we shall authorize the payment to you of the amount
demanded on or before noon on the second Business Day thereafter.
2. Methods of PaYment. Payments authorized in accordance
with paragraph 1 under SPECIAL CONDITIONS shall be made on the
date of authorization in immediately available funds.
3. Expiration. This Letter of Credit shall expire at the
close of our business hours on August 14, 1989, provided,
however, this Standby Letter of Credit is automatically renewable
for successive one year periods from the present expiration date
unless we notify you by certified mail, addressed to the City of
Albertville, P.O. Box 131, Albertville, Minnesota 55301, thirty
(30) days prior to said expiration date that we elect not to
renew the Letter of Credit for an additional period of one year.
Page 3
4. Maximum Amount of Drawing. This Letter of Credit has
been issued pursuant to the Developer's Agreement dated the 11th
day of August, 1988, by and between Braun Development, Inc., as
Developer, and the City of Albertville. The amount which may be
drawn pursuant to this Letter of Credit for particular items are
as follows:
a. For boulevard improvements, grading control,
street signs and street cleaning: $10,200.00.
b. The Bank shall be entitled (but not required) to
exercise any developer rights granted in the
Development Agreement, including but not limited
to, the reduction and release provisions contained
in Paragraph 6 of the Development Agreement.
GENERAL CONDITIONS:
1. Drawings; Reduction of Stated Amount. Each drawing
hereunder shall reduce by the amount of the drawing the amount
available under this Letter of Credit.
2. Limitation on Obligations. Security State Bank of
st. Michael has no obligation or right to:
a. Inquire into the correctness of any such herein
described certification; or
b. See to the proper application or use by the City
of Albertville of any payments by the Bank to it
under such certification.
3. Transferability.
transferrable.
This Letter of Credit is not
4. Irrevocability. This Letter of Credit is irrevocable.
5. Complete Agreement. This Letter of Credit sets forth
in full the terms of our undertaking. Reference in this Letter
of Credit to other documents or instruments is for identification
purposes only, and such reference shall not modify or affect the
terms hereof or cause such documents or instruments to be deemed
incorporated herein.
6. Governing Regulation. Our rights or our liabilities
and responsibilities are strictly limited in accordance with the
most current revision of Uniform Customs and Practice for
Documentary Credits, 1983 Revision, ICC Publication No. 400,