06-24-2019 Council Packet - Laserfiche WebLink

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IRREVOCABLE LETTER OF CREDIT No. _ Date: TO: City of Orono 2750 Kelley Parkway Orono, Minnesota 55356 Dear Sir or Madam: We hereby issue, for the account of _Orono Orchard, LLC_ and in your favor, our Irrevocable Letter of Credit in the amount of $108,875.00, available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter of Credit No. , dated 12_, of Name of Bank) " b) Be accompanied by an affidavit signed by the Mayor or City Administrator of the City of Orono certifying that _Orono Orchard, LLC is in default of the Development Contract with the City of Orono and that five (5) business days prior written notice has been given by the City to the Developer with respect to the existence of such default, and such default has not been cured. c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30, 2 This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Orono City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Orono City Administrator, Orono City Hall, 2750 Kelley Parkway, Orono, Minnesota 55356, and is actually received by the City Administrator at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600. This agreement shall be construed and interpreted under Minnesota Law. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. Its 21