HomeMy WebLinkAboutForm of letter of credit (subdivisions) 02FORM 5/30/08
TOWN OF MONTVILLE
FORM OF LETTER OF CREDIT TO BE USED FOR:
SUBDIVISION PROJECTS
LETTER OF CREDIT FROM BANK THAT MEETS TOWN’S CRITERIA
[NAME OF ISSUING BANK]
Date: _______________
Irrevocable Letter of Credit No. __________
Beneficiary: Applicant:
Town of Montville ___________________________
310 Norwich-New London Turnpike ___________________________
Uncasville, CT 06382 ___________________________
(“Town”)
Ladies And Gentlemen:
We hereby issue our irrevocable Letter of Credit Number __________ to the Town, as Beneficiary, for the account of the Applicant in the amount of ($ ) U.S.
Dollars.
This Letter of Credit is issued in connection with that certain approval of the Town of the Applicant’s subdivision project pursuant to the Town of Montville Subdivision Regulations
(the “Regulations”), which approval was granted on ____________________ (the “Approval”). Under the Approval, the Applicant is required to perform certain improvements (the “Improvements”)
on property located at _____________________, Montville, Connecticut. The Improvements described in the Approval must be completed by the date in the Regulations and the Approval (the
“Completion Date”).
This Letter of Credit is to guarantee Applicant’s full performance of its obligations under the Approval and to secure the Applicant’s liability to the Town for Applicant’s failure to
perform its obligations under the Regulations and the Approval, including the completion of the Improvements by the Completion Date.
This Letter of Credit is available by payment with us against presentation to us of your drafts drawn on us at sight accompanied by your signed and dated certificate stating as follows:
(1) “Applicant has failed to perform an obligation under the Regulations and the Approval and $______________ is due to the Town.”
(2) “A bankruptcy proceeding has been filed by or against the Applicant. We will hold these proceeds in a non-interest bearing cash collateral account maintained by us to secure the
Applicant’s performance of its obligations to the Town.”
(3) “Letter of Credit No. __________ has not been renewed or replaced by another substitute irrevocable standby Letter of Credit, in form and substance acceptable by us. We will hold
these proceeds in a non-interest bearing cash collateral account maintained by us to secure the applicant’s performance of its obligations to the Town.”
Special Instructions
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The expiration date of this Letter of Credit is _____________, ____.
It is a condition of this Letter of Credit that it is deemed to be automatically extended without amendment for one year from the expiration date hereof or any future expiration date,
unless at least sixty (60) days prior to any expiration date we shall notify you in writing, by certified mail, addressed to the ______________ of the Town at the address set forth above
that we elect not to consider this Letter of Credit renewed for any such additional period.
All drafts drawn under this Letter of Credit must be marked: “Drawn under [name of issuing bank] Letter of Credit No. __________ dated __________, 200____.
All documents must be sent to us in one lot by overnight courier at the following address:
[Name and Address of Issuing Bank
_________________________
_________________________]
We engage with you that all drafts drawn under and in compliance with the terms and conditions of this Letter of Credit will be duly honored by us.
All inquiries and/or correspondence pertaining to this Letter of Credit should be directed to: _________________________________.
This Letter of Credit is subject to the uniform customs and practice for documentary credits (2007 revision) International Chamber of Commerce, Publication No. 600.
Very truly yours,
[signature of issuing bank]
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