HomeMy WebLinkAbout0000 Quarry Hill Road - Landscaping - 7/1/2009July 1, 2009
City of South Burlington
575 Dorset Street South
Burlington VT 05403
Re: Irrevocable Standby Letter of Credit #1778722
John P Larkin
410 Shelburne Road
South Burlington VT 05403
Dear Beneficiary:
Peoples United Bank d/b/a Chittenden Bank hereby establishes our
Irrevocable Standby Letter of Credit #1778722 in favor of the
City of South Burlington for the account of John P. Larkin up to
an aggregate amount of $56,000.00 available by your draft or
drafts on us at sight accompanied by:
1.) the original Letter of Credit and all amendments, if
any,
2.) a written statement signed by an authorized officer of
the City of South Burlington that these funds are due you
under the terms of your agreement with John P. Larkin,
accompanied by
3.) a current secretary certificate or resolution from the
City of South Burlington that the officer is authorized to
sign on behalf of the City of South Burlington.
If your demand represents a partial drawing hereunder, we will
endorse the original credit and return same to you for possible
future claims. If, however, your demand represents a full
drawing, or if such drawing is presented on the day of the
relevant expiration date hereof, we will hold the original for
our files and remove same from circulation.
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chittenden.com
All drafts must be marked under Letter of Credit #1778722.
We engage with you that all drafts drawn under and in compliance
with the terms and conditions of this credit will be duly honored
on delivery of documents as specified if presented at this office
on or before July 1, 2011.
Except so far as otherwise expressly stated, this credit is
subject to the "International Standby Practices ISP 98 (1998
Revision), International Chamber of Commerce Publication #590"
Very truly yours,
�G%t!
Brian D. Messier
Assistant Vice President
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chittenden.com
A die,�is:on j it�opi%ens U ted
Bank
BENEFICIARY ACCEPTANCE
Chittenden Bank has this 1st day of July, 2009 caused to be
Hand Delivered Letter of Credit #1778722 to the City of
Burlington . This Letter of Credit is Issued on behalf of
John P. Larkin.
By
D ly uthorized Agent
Date
OE'—II_00: "I0:00.4M:
01,-.041-)e.-F I
SITE PLAN
LETTER OF CREDIT AGREEMENT
THIS AGREEMENT, executed in triplicate between Jo4W P, IAIZ (,O of
1i v T —hereafter referred to as "DEVELOPER", C �.1, e� �•,k
of I- , hereafter referred to as "BANK", and
, hereafter referred to as "MUNICIPALITY".
WITNESSETH:
WHEREAS, DEVELOPER has received site plan approval from the
MUNICIPALITY'S Planning Commission for the development of property located at
as depicted on a site plan entitled
-'1i (U )S i -U ",dated 61Z-5 -3 , ►1W
and prepared by Tjc,
WHEREAS, DEVELOPER is required by said approval, at its own expense, to
complete the construction of the development site in accordance with the plan approved
by the Planning Commission; and
WHEREAS, the parties to this Agreement wish to establish a mechanism to
secure the obligations of the DEVELOPER for the work as set forth above; and
WHEREAS, the BANK executes this Agreement solely in the capacity of issuer
of a Letter of Credit hereinafter specified;
NOW, THEREFORE, the parties hereby covenant and agree as follows:
I. DEVELOPER will, at its own expense, complete the following construction
as depicted and in accordance with the specifications set forth in said site plan and related
documents:
6Me- t--T 912�-5
2. The DEVELOPER shall complete the improvements set forth in Paragraph 1
no later than AVl tr57 ,Jolo
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3. DEVELOPER shall replace or repair any defective or improper work or
materials which may be recognized within three years after completion of the improve-
ments set forth in Paragraph 1. For the purpose of this Agreement "completion" shall be
deemed to have occurred when the MUNICIPALITY has inspected and approved the
construction of all the improvements required by this Agreement and issued written
notice to the DEVELOPER that the construction is complete.
4. For the guarantee of DEVELOPER's performance of all requirements
hereunder set forth, DEVELOPER has caused the BANK to issue its Irrevocable Letter of
Credit in favor of the MUNICIPALITY, the original of which is attached to the
MUNICIPALITY's copy of this Agreement, and a copy of which is attached to the
DEVELOPER's copy of this Agreement. During the term of this Agreement,
DEVELOPER shall cause the attached Letter of Credit to be renewed at least thirty (30)
days before the maturity dated thereof. Failure of DEVELOPER to deliver evidence of
such renewal to MUNICIPALITY thirty (30) days prior to the date of expiration of said
Letter of Credit shall constitute a default of the terms of this Agreement.
5. Said Irrevocable Letter of Credit provides that the drafts drawn under said
credit, must be accompanied by a written statement signed by a duly authorized agent of
the MUNICIPALITY, that in the judgment of the MUNICIPALITY, the DEVELOPER is
in default under the terms of this Agreement, and the funds drawn by the draft are in
payment for, or in anticipation of payment for the materials, labor and services required
for completion of the improvements identified in Paragraph 1. Payment of each draft will
be made at sight when presented to the BANK by the MUNICIPALITY, the payment
limited only by the aggregate amounts presented in relationship to the maximum amount
of the Letter of Credit. If DEVELOPER shall be in default of the Agreement for seven
(7) days because of its failure to provide evidence of renewal of the Letter of Credit,
required in Paragraph 4 above, the MUNICIPALITY shall notify DEVELOPER by
certified mail of said default. DEVELOPER shall then within three (3) business days
provide MUNICIPALITY with evidence of said renewal of Letter of Credit or
MUNICIPALITY may notify BANK of such default and request payment under said
Letter of Credit.
6. The DEVELOPER and MUNICIPALITY hereby agree that the sum of
fual- Ix sous J ) shall be sufficient to
secure EVELOPER's obligations under this Agreement but shall not relieve
DEVELOPER from the obligation to pay any additional costs, if actual costs exceed the
above -state cost.
7. The MUNICIPALITY will promptly submit to the DEVELOPER a copy
of any draft it submits the BANK. The consent of the DEVELOPER to payment of said
draft by BANK to the MUNICIPALITY under said Letter of Credit shall not be required.
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8. The MUNICIPALITY shall not file with the BANK a Statement of
Default until ten (10) days after notice has been sent to the DEVELOPER, by certified
mail, setting forth its intention to do so.
9. All funds drawn on the BANK by the MUNICIPALITY pursuant to the
Letter of Credit shall be used solely by the MUNCIPALITY for the purpose of
completing construction of the improvements identified in Paragraph 1. Any work
contracted for by the MUNICIPALITY pursuant hereto shall be let on a contractual basis,
or on a time and material basis, or shall be performed by the MUNICIPALITY's own
work force and equipment, or shall be accomplished in such other manner as in the
Judgment of the MUNCIPALITY shall accomplish the work more expeditiously and
economically.
10. If payments are drawn on the BANK by the MUNICIPALITY pursuant
to said Letter of Credit, and it shall later develop that a portion of the monies drawn are in
excess of the MUNCIPALITY's needs, any such excess amount shall be refunded by the
MUNCIPALITY to the BANK, to be credited by said BANK to the DEVELOPER.
11. This Agreement and said Letter of Credit shall terminate and shall be of
no force and effect upon completion of the three year warranty period as described in the
above Paragraph 3. If the MUNICIPALITY has not delivered any written notice to the
DEVELOPER of any defective or improper work or materials in the construction of the
improvements within the thirty six (36) month period, or if notice has been given and
defective work or materials have been corrected by the DEVELOPER, the
MUNICIPALITY shall forthwith notify the BANK in writing that the Letter of Credit
may be cancelled, and shall return the original Letter of Credit to the BANK, and both the
DEVELOPER and the BANK shall be released from all obligations hereunder and under
said Letter of Credit.
12. Upon request of DEVELOPER, but only at the sole discretion of the
MUNICIPALITY, the MUNICIPALITY may agree to reduce the amount of said Letter
of Credit required hereunder if the MUNCIPALITY believes that the full amount of said
Letter of Credit is no longer necessary to protect its interest, and shall notify the BANK
in writing of such reduction in the amount of the Letter of Credit.
13. The BANK may not modify the Letter of Credit without first receiving
written consent of the MUNICIPALITY.
14. DEVELOPER hereby agrees to indemnify and hold BANK harmless
from all claims, causes of action or liability of any kind arising out of this Agreement or
the issuance by BANK of this Letter of Credit, including attorney's fees, as long as
BANK follows the terms and conditions outlined in said Letter of Credit.
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Dated at ��tw,4v�► , Vermont,
this day of �w\„ l J , 20--C!j.
THE PRESENCE OF
D ated at _ T-A, I y,-v, '
this day of �w�v 1 , 20 01' .
By;
Duly lionzed Agent
(D VELOPER)
Vermont,
THE NCE O
V
B,
kY.--"
Dated at v' &d( 144Pa , Vermont,
this day of C .2001.
By. uf�
Duly Authorized Agent
(MUNICIPALITY)