___________________, 20___
City of Mattoon Expiration Date _______
208 N. 19th St.
Mattoon, IL 61938
Number:__________________
Amount:
Gentlemen:
We hereby establish our Irrevocable Letter of Credit in your favor for the amount of ______________________________ (name and address)( the "Developer"), in the aggregate amount of $______________________________________________ Available by your draft drawn at sight and marked “Draw under (identify letter of credit), dated ______________________” and accompanied by a statement signed by the City of Mattoon City Administrator indicating one of the following:
1. Some portion of the public improvements required by City ordinance, Annexation Agreement or other agreement or mandate, as described in the approved plans and specifications for the project known as ________________________ have not been completed in accordance with said ordinances, agreements, plans or specifications; or
2. An amount is due and unpaid for work completed on said project; or
3. That the Developer has not completed the required improvements and has failed to renew this Letter of Credit as of sixty (60) days prior to its expiration.
The improvements in the above described project shall be completed before sixty (60) days prior to expiration date. If the required improvements have not been completed, approved by the City Engineer and accepted by the City prior to that date, then the City is hereby granted authority to draw upon this Irrevocable Letter of Credit for the purpose of completing said improvements or making payments in accordance with the provisions set forth above, or to extend the Letter of Credit for a period up to one (1) year by written demand. Partial and several draws will be accepted. Any draft may draw up to the entire remaining balance hereunder. The principal amount of this Irrevocable Letter of Credit shall not be reduced for any subdivision improvements installed unless such reduction is approved by the City Administrator. The City may submit its site drafts as hereinabove provided without the consent of the Developer or any other party. Said drafts may be submitted for payment on or after sixty (60) days prior to expiration and shall be honored in accordance with the terms and provisions herein contained.
This Letter of Credit is irrevocable and shall be utilized to secure the installation and completion of all improvements required under the Subdivision and other germane ordinances of the City of Mattoon through and including the applicable one (1) year maintenance period after the substantial completion of the improvements, and until the improvements have been finally approved by the City Engineer and accepted by the City Council. This Irrevocable Letter of Credit shall not operate as a limitation upon the obligation of the Developer to install all improvements required by the City of Mattoon.
This Irrevocable Letter of Credit is subject to the “Uniform Customs and Practice Documentary Credits” (1993 revisions), the International Chamber of Commerce Publication #500 as hereinabove modified.
Sixty (60) days prior to the expiration of this Irrevocable Letter of Credit, we shall notify the corporate authorities of the City, by registered letter, return receipt requested, of the impending expiration date. This commitment shall not terminate without such notice. In the event the sixty (60) day notice is not sent on a timely basis, this commitment shall remain in effect until the 60th day after the receipt by the City of the late-filed notice.
Very Truly Yours,
________________________________________________
BANK
BY:_____________________________________________
TITLE:__________________________________________
(Ord. 2010-5303, passed 6-1-2010)