1995-10-12 LOC Established
\ P; BAN<
((((lCIIH'))' NORTH W=S T
.'V
701 Central Ave. East
St. Michael, Minnesota 55376
(612)497-2131
FAX (612) 497-4353
City of Albertville
Attn: Linda Houghton
Box 131
Albertville, MN 55301
DATE: December 12, 1995
Letter of Credit: #259705
Expiration Date: December 12, 1995
Dear Ms. Houghton:
We hereby establish our IRREVOCABLE standby Letter of Credit in your favor for the
account of Braun Development, Inc. available by your dr~fts drawn at sight on Security
Bank Northwest, St. Michael, MN 55376 for any sum or sums not exceeding a total
aggregate amount of $29, 125.00.
Any draw under this Letter of Credit must be accompanied by this original Letter of
Credit, a copy of Hardwood Pond Second Addition Developer Agreement dated October
13, 1993 between Braun Development, Inc. and the City of Albertville in the amount of
$29,125.00 and a statement signed by a Certified Official of the City of Albertville stating
that Braun Development, Inc. 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 Braun Development, Inc. to perform under the contract.
Except as otherwise stated herein, this credit is subject to the Uniform Customs and
Practice 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 presentep to us shall constitute a warranty
of the negotiating bank that such endorsement was effected.
All drafts under this credit should bear the clause "Drawn Under Security Bank
Northwest, St. Michael, MN Letter of Credit #259705 dated October 13, 1993, amended
December 12, 1994.
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
$29,125.00.
OffiCES:
Albertville: 5985 Large Avenue ~lortheasL Albertville. Minnesota 55301. (612) 497-3525 . Maple Grove: 13360 Grove Drive. Maple Grove. Minnesota 55369. (612) 420-303<;'
City of Albertville
December 12, 1995
Page Two
The term of this Letter of Credit shall automatically extend one (1) year from the
expiration date provided herein unless Security Bank Northwest notifies the City that said
term shall not be renewed or extended beyond the date provided herein. Said notification
shall be effective only ifit is provided to the City in. writing at least sixty (60) days prior to
the expiration of said Irrevocable Letter of Credit as provided herein. Said extension shall
occur annually until said notice of non-renewaVnon-extension is timely provided to the
City.
We hereby agree with you and with negotiating banks and ba.nkers that all drafts drawn by
virtue of this credit, and in accordance with its terms, shall meet with due honor upon
presentation and delivery of documents as specified to Security Bank Northwest, St.
Michael, MN 55376 if negotiated, or if presented at this office together with Letter of
Credit on or before December 12, 1995. '
Sincerely,
'!C~ /. /ffl ' /~
/?e: //ij.?4/~,
Kathryn A. Marquette
Asst. Vice President
KAM/by