1994-08-08 LOC Establish 270157
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701 Central Avenue E.
St. Michael. Minnesota 55376
(612) 497-2131
FAX (612) 497-4353
City of Albertville
Attn: Linda Houghton, City Administrator
P.O. Box 131
Albertville, MN 55301
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Date: August 8, 1994
Letter of Credit: #270157
Expiration Date: August 8, 1995
Dear Ms. Houghton:
We hereby establish our IRREVOCABLE standby Letter of Credit in your
favor for the account of Douglas Psyk of Albertville, Minnesota
available by your drafts drawn at sight on Security Bank Northwest,
St. Michael, MN 55376 for any sum or sums not exceeding a total
aggregate amount of Thirty-Two Thousand, Nine Hundred Sixty-One
($32,961.00) and NO/lOa Dollars.
Any draw under this Letter of Credit must be accompanied by this
original Letter of Credit, a copy of Psyks' Sixth Addition Develop-
ment Contract dated August 5, 1994 between Douglas Psyk and The City
of Albertville in the amount of $32,961.00 and a statement signed by
a Certified Official of the City of Albertville stating that Douglas
Psyk has not performed his obligations as required under that
Contract and that the amount of the sight draft accompanying the
draw request is equal to the amounts owed by The City of Albertville
to cover expenses necessary to rectify the failure of Douglas Psyk
to perform under the contract.
Except as otherwise stated herein, this Credit is subj ect to the
Uniform Customs and Practices for Documentary Credits (1983
Revision), International Chamber of Commerce Publication No. 400.
The amount of each draft negotiated, with the date of negotiation,
must be endorsed hereon by the negotiating bank, and any draft
presented to us shall constitute a warranty of the negotiating bank
that such endorsement was effected.
All drafts drawn under this credit should bear the clause "Drawn
Under Security Bank Northwest, St. Michael, MN Letter of Credit
#270157 dated August 8, 1994.
OFFICES:
Albertville: 5882 Main Street Northeast, Albertville. Minnesota 55301, (612) 497 -3525' Maple Grove: 13370 Grove Drive, Maple Grove, Minnesota 55369, (612) 420-3039
.
.
City of Albertville
Letter of Credit #270157
August 8, 1994
Page 2
All documents required by this Letter may be submitted until its
expiration date. Partial drawings are acceptable as are multiple
drawings although total draws may not exceed $32,961.00.
We hereby agree with you and with negotiating banks and bankers that
all drafts drawn by virtue of this Credit, and in accoradnce with
its terms, shall meet with due honor upon presentation and delivery
of documents as specified to Security Bank Northwest, St. Michael,
MN if negotiated, or if presented at this office together with
Letter of Credit on or before August 8, 1995. This Letter of Credit
shall automatically renew for a one year period unless written
notice is given 60 days before expiration by Security Bank Northwest
to the City of Albertville indicating that such renewal shall not
take place.
Sincerely,
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Douglas E:JBleess
Vice President
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