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HomeMy WebLinkAboutRESOLUTION NO. 02-10-08-3 RESOLUTION 2— — 08 APPROVING LETTER OF CREDIT GORDON SEVIG PART TWO OF PRAIRIE VIEW ESTATES, FAIRFAX, IOWA WHEREAS, Gordon Sevig has submitted a letter of credit from Fairfax State Savings Bank in the amount of$400,000.00 as security for the completion of improvements in Part Two of Prairie View Estates,Fairfax,Iowa; and, 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 19 day of " ,2002. AYE k -Y 1 NAYS t ABSENT Bill Voss,Mayor ATTEST: Mari Pac , City Clerk COMMERCIAL LETTER OF CREDIT Issued in favor of; The Cit of Fairfax Iowa All drafts drawn must be marked_ Drawn under: Fairfax State Savings Bank Letter of Credit No.: 100802. Ladies and Gentlemen: We hereby establish our irrevocable letter of credit in your favor for the account of Gordon Sevig up to the aggregate amount of$400,000,00 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 October 8_,2002, 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 Two 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 NoC. r 1, , as amended, and which certain improvements are specified by the Mayor and City Co cil of the City of Fairfax, Iowa, as follows: IMPROVEMENTS FOR COST OF IMPROVEMENTS Part Two of Prairie View Estates, $400,000.00 Fairfax, Iowa 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, being Ordinance No,—", o ,� , as amended. The condition of this obligation is such that if Gordon Sevig shall in all respects comply with the terms or Ordinance N "derunnify as amended, in effect as of the date of this irrevocable letter.of credit, and shall fulland 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 Fairfax , Iowa on this 8t" day of October , 2002. Fairfax State Savings Bank By. D. C. Neuhaus, President Gordon Sevig City of Fairfax, Iowa By: 1 .._ May r Ey. C � Cl rk