1997-06-18 LOC Establish
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., Northeast
,. State Bank
June 18, 1997
Your Independent
Community Bank
IRREVOCABLE LETTER OF CREDIT NO. 11-97
77 Broadway NE.
Minneapolis, MN 55413
612-3798811
FAX 612.3623262
City of Albertville
A TTN: Linda Houghton
Box 13 1
Albertville, MN 55301
Mr;mber F.DIC
RE: SUBDIVISION IMPROVEMENTS IN THE P ARKSIDE 4TH ADDITION CITY OF
ALBERTVILLE AS REGULATED BY DEVELOPERS AGREEMENT
We hereby establish our Irrevocable Letter of Credit 11-97 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 Sixty One Thousand Two Hundred Eighty Six and 95/1 00 Dollars ($161,286.95), 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 sewers, water lines and
site improvements in the Parkside 4th 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 this 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 by 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 $161,286.95.
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June 18, 1997
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3) Bear on its face the clause: "Drawn under Letter of Credit No. 11-97, dated June 18,
1997";
4) Be presented for payment at this office no later than 1 :00 P.M., on June 18, 1998, at
which time this Letter of Credit shall expire.
This amount of the Letter of Credit shall be automatically reduced in the amount of One Hundred
Percent (100%) of the estimated cost of the work completed, until Sixteen Thousand One
Hundred Thirty and 00/1 00 Dollars ($16,130.00) remains. The City Council shall approve in
writing such reductions below Sixteen Thousand One Hundred Thirty and 00/1 00 Dollars
($16,130.00) until project completion. Each drawing hereunder shall reduce by the amount of
such drawings the amount available under this Letter of Credit.
We hereby agree that drafts drawn under and presented in conformity with the terms of the Letter
of Credit will be duly honored upon presentation.
Except as other wise 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
construed in accordance with the laws of the State of Minnesota, including the Uniform
Commercial Code as in effect in the 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.
Northeast Bank
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Executive Vice President
and Casher
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