HomeMy WebLinkAbout0000 Catkin Drive - Landscaping - 4/9/1999CM3
Vermont National Bank
City of South Burlington
575 Dorset St.
South Burlington, Vermont 05403
Re: MBL Associates, LLC
Dear Sir/Madam:
April 6, 1999
Irrevocable Letter of Credit
#99-2105
We hereby authorize you to draw on Vermont National Bank, for the account of MBL
Associates, LLC of South Burlington, Vermont to an aggregate amount of Twelve
Thousand Seven Hundred Fifty Dollars and 00/100ths. ($12,750.00) U.S. Currency,
available by your sight draft.
This Letter of Credit is valid until April 6, 2002. All drafts must bear the following
clause: "Drawn as per contract between MBL Associates, LLC and City of South
Burlington under Vermont National Bank Letter of Credit #99-2105" for street
trees to Catkin Drive, South Burlington, VT. The drafts presented for payment under
this Letter of Credit must be accompanied by a letter from an authorized agent of City of
South Burlington (Municipality) stating that the Municipality has given, MBL
Associates, LLC (Developer) written notice of default of its performance requirements
under an agreement between the Municipality and the Developer, and that said notice was
delivered to the Developer at least 60 days in advance of.the draft(s).
Documents must be delivered to the Vermont National Bank. P.O. Box 1308,
Burlington, Vermont 05402; drafts must be drawn and negotiated no later than April 6,
2002.
Unless otherwise expressly stated, this credit is subject to the Uniform Customs &
Practices for Commercial Documentary credits fixed by the International Chamber of
Commerce (1993 Revision), ICC Publication No. 500, and is governed by the Uniform
Commercial Code of Vermont, as from time to time amended.
Post -it' Fax Note 7671 Date �� # of
To Pages
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Phone #
I Fax
P.O. Box 804, Brattleboro, VT 05302 802.257.7151 0xy Printed an recycled paper
Page 2
City of South Burlington
575 Dorset St.
South Burlington, Vermont 05403
#99-2105
We hereby agree with the drawers and bona fide holders of drafts under and in
compliance with the terms of this credit that such drafts will be duly honored on due
presentation of the drawee.
S UBD N I S I ON
L E TT E R O F C RED = T AGREEMENT
THIS AGREEMENT, executed in triplicate between ��� d!�✓/
of �� �,s�,c, Zic S h reinafter
referred to as "DEVELOPER", 7,�1c/ �_, << <.,, f of
c �z� hereinafter referred to as ""Bank", and
— ✓ ��� hereinafter referred to as
"MUNICIPALITY".
W I T N E S S E T H:
WHEREAS, Developer has received final subdivision approval
from the MUNICIPALITY'S Planning Commission for the development of
a subdivision consisting of l(/ lots with related improvements,
in a development to be known as;��
as depicted on
and in accordance with the specifications as set forth on Sheet
0 on the final pla plan entitled If
", dated �'- 2-2 ') prepared by
rr'2 ! Ti E'2r
as recorded in Book pages of
the Land Records of the City of South Burlington;
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:
1. DEVELOPER will, at its own expense, complete the following
construction as depicted and in accordance with the specifications
set forth in said final plat and related documents:
2. The Developer shall complete the improvements set forth in
Paragraph 1 no later than Aj :3 r — c1c
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3. DEVELOPER shall replace or repair any defective or
improper work or materials which may be recognized within one year
after completion of the improvements 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 date 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
judgement of the MUNICIPALITY, the DEVELOPER is in default under
the terms of this Agreement, and that the funds to be drawn by the
draft are in payment for, or in anticipation of payment for
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 ) shall be sufficient
to secure DEVELOPER's obligations under this Agreement but shall
not relieve DEVELOPER from the obligation to pay any additional
costs, if actual costs exceed the above -stated cost.
7. The MUNICIPALITY will promptly submit to the DEVELOPER a
copy of any draft it submits to the BANK. The consent of the
DEVELOPER to ayment 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 MUNICIPALITY
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 judgement of the
MUNICIPALITY 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 MUNICIPALITY'S
needs, any such excess amount shall be refunded by the MUNICIPALITY
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 one 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 twelve (12) month period, or if
notice has been given and the 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 canceled, 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 MUNICIPALITY 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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15. This Agreement shall be binding on all parties hereto and
their respective heirs, executors, administrators, successors and
assigns.
Daed at /fie _ jar Vermont, thisC� day of
r> , 199j
IN THE PRESENC F-
By: ( )
Duly Authorized Agent
(DEVELOPER)
D ted111)Uji,,z6j& ,
1
IN PRESENCE OF:
Vermont, this,day of
Duly Autho ized
"" D (BANK)
Dated t �� , Vermont, this day of /�/
19
IN PRES NCE OF:
4440'4�"'
— C 1- � �u 4--
t
By:
Duly Authorized Agent
(MUNICIPALITY)
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