This Letter of Credit is from (name of financial institution) to Village of Seneca, Illinois, a municipal corporation, effective as of 20 , issued for the purpose of constructing the subdivision improvements including, but not limited to streets, curbs, storm sewers, sanitary sewers, street lights, and other improvements as set forth on the drawings, specifications and engineering as required by the Village of Seneca Subdivision and Zoning Ordinances and as approved by the Village Engineer of Seneca for the subdivision commonly known as .
This Letter of Credit covers uncompleted construction of the public improvements mentioned above in said subdivision up to the total amount of $ which is one hundred twenty-five percent (125%) of the estimated cost of improvement. If for any cause any or all of the public improvements required to be installed in said subdivision should not be constructed within two (2) years from Village Council approval of the final plat in compliance with said drawings, specifications, and engineering submitted with said subdivision and approved by the Village Council of Seneca and Village Engineer, the funds included in this letter may be used by the Village of Seneca to complete the construction and installation of the same and may be drawn in whole or in part by the Village Engineer of Seneca and will be paid immediately upon written demand given by the Village Engineer of Seneca, or Mayor of the Village of Seneca.
All demands made by Village in conformity with this Irrevocable Letter of Credit will be duly honored immediately upon presentation. If, within five (5) days of the date any demand is presented, we fail to honor same, we agree to pay all attorneys' fees, court costs and any other expenses incurred by the Village of Seneca in enforcing any of the terms of this Irrevocable Letter of Credit.
Payouts from this Irrevocable commitment shall be as follows:
If we have not been notified by the Village of a default by the owner and/or developer, we shall disburse the funds for labor and materials furnished by contractors in accordance with the sworn statement on order of the owner, the submission of proper lien waivers from the contractors engaged in such work, and the certificate by the Village Engineer of Seneca and contractors that such work has been properly completed, provided, however, that we shall withhold from each payment made under such sworn statement(s) or order(s) an amount equal to ten percent (10%) thereof until all improvements have been completed except final surfacing of the streets, at which time the ten percent (10%) sum withheld shall be disbursed less a sum equal to one hundred and twenty-five percent (125%) of the cost of the final surfacing of the streets, which sum shall be finally disbursed when that work has been completed and the requirements of certification and lien waivers has been completed as hereinabove set out.
If we receive a resolution of the corporate authorities of the Village indicating that the owner and/or developer has failed to satisfactorily complete or carry on the work of the installation and construction of the requirement improvements, and such resolution indicates that the owner and/or developer, has been notified that the Village finds that a breach of the owner's and/or developer's obligations has occurred, then in such case we shall make payments for materials and labor to such contractor(s) or subcontractor(s) who have completed the improvements in substantial accordance with the plans and specifications of the owner and/or developer and approved by the Village of Seneca; such payments shall be made upon the certification of the Village of Seneca Engineer that the work has been completed and the submission of property waiver of liens from the contractor(s) or subcontractor(s). The amount of the payouts shall be in accordance with the retention provisions as previously set out.
The Irrevocable Letter of Credit established by us shall continuously remain in full force and effect until released, in writing, by the Village following final acceptance of improvements. Funds may be partially released for individual completed improvements prior to completion of the overall project in the sole discretion of the Village. Under no circumstances shall this Irrevocable Letter of Credit be reduced to a sum less than twenty-five thousand dollars ($25,000) or ten percent (10%) of its initial value, whichever is greater. Said Irrevocable Letter of Credit shall remain in effect without regard to any default in payments of sums owed us by the owner and/or developer and without regard to other claims which we may have against the owner and/or developer. If the work covered by this commitment has not been completed within the time set forth in this agreement, the Village may, at its option, continue drawing funds for payment of the required improvements. It is recognized that the Village is according the owner and/or developer the permission to proceed with the development project upon the guarantee of the Irrevocable nature of this commitment. It is further acknowledged that the consideration for this Irrevocable commitment is provided by agreements between this financial institution and the developer. The sum of this credit shall, however, be reduced in the amount of disbursement made from time to time in accordance with the terms under which this credit is extended as set out above.
It is hereby represented that the undersigned are officers of this financial institution and they are duly authorized by the Board of Directors to execute this Irrevocable Letter of Credit and that a certified copy of the resolution authorizing the execution of this Letter of Credit is attached hereto.
Name of Financial Institution
By:
President
ATTEST:
Secretary
(Ord. 11-13, 10-4-2011)