2000-09-14 LOC Established
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HI G H LAN D BAN KS
IRREVOCABLE LETTER OF CREDIT
To:
City of Albertville
Attn: Linda Goeb
Box 1 31
Albertville, MN 55301
No. 22459502
Date: 09/14/00
RE: Psyk Development Corporation
We hereby establish our Irrevocable Letter of Credit #22459502 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 Psyk Development Corporation in the amount of $9,600.00, as such
amount is decreased as provided below, available to you by your sight draft or drafts drawn
upon us in connection with the completion of streets, storm and sanitary sewer, and water
lines in the Psyk 8th addition, City of Albertville (the Improvements") in the Development
Agreement between the City of Albertville and Psyk Development Corporation.
Each draft drawn under this Letter of Credit must be accompanied by:
a) The original of this Letter of Credit;
b) A notarized draft executed by the City Administrator, starting 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 Improvement 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 by the City administrator or his/her designee;
2) Be in an amount required to cure the default by the Developer of complete the
Improvements, which amount shall not exceed $9,600.00.
3) bear on its face the clause: "Drawn under Letter of Credit #22459502, dated
September 14, 2000";
4) Be presented for payment at his office no later than 1 :00 P.M. on September 14, 2001,
at which time this Letter of Credit shall expire.
We hereby agree that drafts drawn under and presented in conformity with the terms of the
Letter of Credit will duly honored upon presentation.
Except as otherwise expressly stated, this Letter of Credit is subject to the Uniform
Customs and Practice for Documentary Credit International Chamber of Commerce
Publication No. 500 (The "Uniform Customs"). This Letter of Credit shall be governed by
and construed in accordance with the laws and of the State of Minnesota, including the
Uniform Commercial Code as in effect in State of Minnesota.
This Letter of Credit 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.
2100 Ford Pkwy. 5270 W. 84th Street
St. Paul, MN Bloomington, MN
5985 Large Ave.
Albertville. MN
701 Central Ave. E.
St. Michael. MN
13370 Grove Drive
Maple Grove. MN
HIGHLANDBANKS
HIGHLAND BANK
(a Minnesota Banking Corporati
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By:
Its:
21 00 Ford Pkwy.
St. Paul, MN
5270 W. 84th Street
Bloomington, MN
5985 Large Ave.
Albertville, MN
701 Central Ave. E.
St. Michael, MN
13370 Grove Drive
Maple Grove, MN