HomeMy WebLinkAboutRESOLUTION NO. 01-11-13-5 RESOLUTION 01-11-13-5
WHEREAS, Gordon Sevig has submitted a letter of credit from Fairfax State
Savings Bank in the amount of$330,000.00 as security for the completion of
improvements in Prairie View Estates—Part 1, Fairfax, Iowa,
NOW THEREFORE,be it resolved by the City Council of Fairfax, Iowa that
said letter of credit is hereby accepted and filed in the Office of the City Clerk.
Passed this day of UVe , 2001.
Bill Voss, Mayor
ATTEST:
Ma Pac a, City Clerk
COMMERCIAL LETTER OF CREDIT
Issued in favor of: The City of Fairfax, Iowa
All drafts drawn must be marked:
Drawn under: Fairfax State Savings Ban
Credit No. 111301
Gentlemen:
We hereby establish our irrevocable letter of credit in your favor for the account of Gordon
Sevig up to the aggregate amuoun�of$330,000.00 available by the request and consent of Gordon
Sevig at the Fairfax State Savings Bank and accompanied by documents specified below. The
condition of this Letter of Credit is such, that whereas the above customer, Gordon Sevig,was on
November 13 , 2001 the applicant unto the City of Fairfax, Iowa, for the approval and
acceptance of a certain subdivision of real estate known and shown upon the plat as Part One of
Prairie View Estates, Fairfax„ Iowa.
The Customer, Gordon Sevig, has not completed certain improvements to, within, or
bounding the described subdivision of real estate as required by the subdivision ordinances of the
City of Fairfax, Iowa, being Ordinance No�,/` �� ��as.amended, and which certain
improvements are specified by the Mayor and City Council of the City of Fairfax, Iowa, as
follows:
IMPROVEMENT COST OF IMPROVEMENT
1. 7" PPC $330,000.00
Gordon Sevig in lieu of completing the improvements heretofore specified, and in order to obtain
the final approval of the plat of the subdivision of the real estate heretofore described, is filing
with the City of Fairfax, Iowa,this Irrevocable Letter of Credit as is permitted by the terms of
said subdivision ordinance, beingOrdinance No �� ` '` 1',Is amended.
..�� r ,
The condition of this obligation,is such that if Gordon Sevig shall in all respects comply with
the terms or Ordinance No. ;,14j. as amended, in effect as of the date of this irrevocable
letter of credit, and shall fully indemnify and save harmless the City of Fairfax, Iowa, from all
costs and damages which it may suffer by reason of failure to do so and shall fully reimburse and
repay the City of Fairfax, Iowa,all outlays and expense which it may incur in making good any
default or failure, then this obligation is to be void and of no effect; otherwise to remain in full
force and affect until said improvements are accepted by the City of Fairfax, Iowa.
It is understood and agreed, however, that the liability of the Issuer under this Irrevocable
Letter of Credit shall not exceed (1) the sum of said Letter of Credit,or(2)the actual cost to the
City of Fairfax, Iowa, for completing the above specified improvements, should such costs be
less than the sum of this Irrevocable Letter of Credit. The Issuer agrees that all drafts drawn
under and in compliance with the terms of this Irrevocable Letter of Credit shall be duly honored
upon presentation and delivery of documents evidencing the failure of Gordon Sevig to comply
with the subdivision ordinances as set forth above.
It is further understood and agreed that the aggregate amount of this Letter of Credit will be
reduced as the City approves or accepts the improvements in whole or in part. Said amount of
reduction shall be the total improvement or the percentage of the total improvements so approved
and accepted by the City's Engineers, Gordon Sevig shall be responsible for providing to the
bank an approval and acceptance form signed by the City of Fairfax or its engineers before the
bank may reduce the amount of this Letter of Credit. The Letter of Credit may be reduced only
by the dollar amount set forth in the approval and acceptance form so provided.
Except as otherwise expressly stated, this Letter of Credit is subject to Uniform Customs and
Practices for Documentary Credits, 1993 Revision, International Chamber of Commerce
Publication No. 500.
Dated at Fad ax , Iowa on this 13th day of November , 2001.
Fairfax St Savi a
By:
Vice Pre" a Donal oung
Gordon Sevig
.City of Fairfax, Iowa
By: & , .
Mayor
dcABy:t
lerk