IRREVOCABLE LETTER OF CREDIT FOR SUBDIVISION IMPROVEMENTS
(Name of Bank or Agency) hereby establishes our Irrevocable Letter of Credit No. in favor of the Town of Plainfield, at the request and for the account of (Name of Subdivider), for any sum or sums not exceeding (amount of credit) dollars, ($ ), available upon presentation by the Director of the Department of Planning and Zoning of the Town of Plainfield, or any employee acting under the Director’s authority, of a letter signed by the President of the Town of Plainfield Plan Commission (the “Plan Commission”) enumerating any and all improvements, installations, and lot improvements (the “Improvements”) not completed as required by the Town of Plainfield Subdivision Control Ordinance (Plainfield Ordinance No. 21-97) and the Plan Commission for the subdivision known as (Name of Subdivision and Section #, if applicable) (the “Subdivision”), Plan Commission Docket No. . The President’s letter shall indicate the estimated cost for completing the Improvements.
This Letter of Credit shall be applicable to the following Improvements (Check all items covered by this Letter):
[ ] | street base | [ ] | street binder |
[ ] | curbs | [ ] | sanitary sewer |
[ ] | storm drainage | [ ] | water system |
[ ] | street topcoat | [ ] | street signs |
[ ] | lot drainage | [ ] | monumentation |
[ ] | erosion control | [ ] | soil preservation |
[ ] | debris and waste removal | [ ] | fencing |
[ ] | [ ] | final grading and lawn preparation | |
[ ] | [ ] | ||
The drafts drawn under this Letter of Credit must state “Drawn under Letter of Credit No. of (Name of Subdivider), dated the day of , “. The amounts of the drafts must be noted on the back of this Letter of Credit by the (Name of Bank or Agency).
This Letter of Credit is effective as of day of the , , and shall expire on the day of , , provided, however, such expiration date shall be automatically extended for successive periods of one (1) year, unless: (i) a Release of Credit is received from the Director of the Department of Planning and Zoning of the Town of Plainfield; or (ii) (Name of Bank or Agency), by certified mail, return receipt requested, notifies both the Director of the Department of Planning and Zoning of the Town of Plainfield and (Name of Subdivider) at least ninety (90) days before the current expiration date, that (Name of Bank or Agency) has decided not to extend this Letter of Credit beyond the current expiration date. In the event of such notification by (Name of Bank or Agency), the credit established by this Letter of Credit shall be available to the Town of Plainfield upon its sight draft or demand for payment for ninety (90) days after receipt of such notice by the Town of Plainfield, as shown on the signed returned receipt.
The credit established by this Letter of Credit and the obligation to pay the same shall not be affected by the receivership, bankruptcy or insolvency of (Name of Subdivider) or the attachment of his/her property. Nor shall this credit and the obligation to pay the same be affected by any security agreement between (Name of Subdivider) and (Name of Bank or Agency).
Whenever this Letter of Credit is drawn on under and in compliance with the terms of this Letter of Credit, (Name of Bank or Agency) shall pay the amount of the draft directly to the Plan Commission or in accordance with the instructions of the Plan Commission.
(Name of Bank or Agency)
By:
Signature
Printed:
Title:
Date:
(Ord. 22-97, passed - -1997; Ord. 28-2019, passed 10-28-2019; Ord. 04-2020, passed 2-10-2020 )