HomeMy WebLinkAboutLetter of CreditJuly 21, 2011
Dear Mr. Brewer:
Sincerely,
w s"
The City of
College Station
heart of the Research Valley
CITY OF COLLEGE STATION P.O. Box 9960 • 1101 Texas Avenue • College Station, TX 77842 • (979) 764 -3570
Brazos Valley Bank
Attn: Glen Brewer
4030 Highway 6 South
College Station, Texas 77845
RE: Irrevocable Letter of Credit (No. 400538600) for the Novosad Addition sidewalk
improvements along Luther Street
This letter is in regards to the Irrevocable Letter of Credit (No. 400538600) in the amount of
$5,890.00 issued by Brazos Valley Bank for sidewalk improvements along Luther Street
adjacent to the Novosad Addition Subdivision, in College Station, Texas. The sidewalk
improvements have been constructed and the subject Letter of Credit is no longer needed by
the City of College Station.
The City of College Station wishes to return the subject Letter of Credit to Brazos Valley Bank
in order for Jerry and Sandra Novosad to have access to the subject funds. Attached is the
original Letter of Credit. Please contact me at (979) 764 -6221, if you need any additional
information.
Joshua D. Norton, P.E., CFM
Assistant City Engigtper
Encl. Irrevocable Letter of Credit (No. 400538600)
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1
FROM: JERRY NOVOSAD AND SANDRA N
DATE: August 20, 2010
ISSUER: BRAZQS VALLEY BANK
IRREVOCABLE LETTER OF CREDIT
TO BENEFICIARY: City of College Station
Attention: Director of Development Services
1101 Texas Avenue
College Station, Texas 77840
IRREVOCABLE LETTER OF CREDIT NO.:_400538600
ISSUE DATE: 12:00 Noon Central Standard Time, August 20 , 2010
EXPIRATION DATE: 12:00 Noon Central Standard Time, August 20, 2011 , or upon the completion
and final payment to all contractors, whichever occurs first.
LOCATION OF PROJECT:
LUTHER STREET NOVOSAD ADDITION
AMOUNT: FIVE THOUSAND EIGHT HUNDRED
NINETY AND NO /100 DOLLARS ($5,890.00)
ACCOUNT OF: JERRY NOVOSAD , (herein "DEVELOPER ")
SANDRA NOVOSAD
GENERAL TERMS & CONDITIONS:
The Issuing Bank set out above hereby issues its IRREVOCABLE LETTER OF CREDIT NO. 400538600_
in favor of the CITY OF COLLEGE STATION, TEXAS, in accordance with CHAPTER 5, V.T.C.A. TEXAS
BUSINESS AND COMMERCE CODE and pursuant to the CODE OF ORDINANCES of the CITY OF COLLEGE
STATION, CHAPTER 9: SUBDIVISIONS, for the Account of DEVELOPER for an aggregate amount of up to
FIVE THOUSAND EIGHT HUNDRED NINETY AND NO /100 DOLLARS ($ 5,890.00). This amount
is available by your draft(s) payable at sight when accompanied by the following:
1. Sworn Statement by a duly authorized representative of the City of College Station, Texas, stating
that Developer(s) has /have defaulted and failed to complete the performance and construction of
the improvements described below in accordance with the CHAPTER 9 of the CODE OF
ORDINANCES of the CITY OF COLLEGE STATION, Texas, and that the proceeds from this Letter of
Credit will either be utilized by the City of College Station, Texas, to complete such construction
or will be returned by the City of College Station to the Issuing Bank
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SPECIAL TERMS & CONDITIONS:
1. All banking fees /expenses /charges incurred are for the account of Developer. The City of College
Station is not responsible for any charges in connection with a drawing under this Letter of Credit.
This Letter of Credit is issued in conjunction with the development of Developer in the City of
College Station, Texas, specifically for the following:
To guarantee the payment and performance of the proposed construction
OF SIDEWALK improvements in NOVOSAD ADDITION , a proposed
addition to the City of College Station, Texas, for a period not to exceed one (1)
year from the date hereof.
2. Disbursements pursuant to this Letter of Credit will never exceed the above - stated amount, less
any amount released by the City of College Station, Texas. The amount of credit under this Letter
of Credit may be reduced upon approval and acceptance by the City of College Station of
completed improvements, which reduction may only be made with the written authorization of the
Director of Planning and Development Services of the City of College Station.
3. In accordance with SECTION 5.106 of the TEXAS BUSINESS AND COMMERCE CODE, this Letter of
Credit may be modified, upon the execution and delivery to Issuer of a sworn statement giving
consent to modification by the Director of Planning and Development Services of the City of
College Station.
4. The Issuer of this Letter of Credit has caused this Letter to be signed by the undersigned officer
who has attached proof of his authorization to sign, together with attestation by Issuer's authorized
attesting officer and sealed with the seal of Issuer.
BY:
Attested By:
ISSUER: BRAZOS VALLEY BANK, N.A.
Authorized Officer
STATE OF TEXAS
*
COUNTY OF BRAZOS *
This instrument was acknAv ledged before me on VS 7--(12.000, by ' 114 " tl ,
the authorized officer of bira7,cs UC( 1564_ ' k- , Issuer, a exas Banking Corporation, on
behalf of said Banking Corporation and in the capacity stated.
Candace Coryne Neal
My Commission Expires
Q 10/08/2013
Notary Public — State o
C:IDocuments and Settings111indseylLocal SettingslTemporary Internet FilesIOLKICICITY OF COLLEGE STATION (2).DOC
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Alan Gibbs - Fwd: Novosad LOC #4000339100
From:
To:
Date:
Subject:
CC:
Attachments:
Lance,
We received the LOC #4000538600 extension to Aug 20, 2011. This is acceptable. Please inform the Owners, Jerry and
Sandra Novosad. Thank you.
Alan Gibbs, P.E., CFM
City Engineer
Planning and Development Services
City of College Station
P.O. Box 9960
College Station, TX 77842
Office: (979) 764 -3570
Fax: (979) 764 -3496
Email: agib_bs @cstx.gov
City of College Station
Home of Texas A &M University()
»> Alan Gibbs 8/20/2010 10:03 AM »>
Lance,
As discussed, the City will be proceeding with drawing on this Letter of Credit for $5,890.00 this afternoon as it expires
tomorrow, August 21, 2010. Our office has corresponded with your office and with the Owners, Jerry and Sandra
Novosad, in recent weeks, however, we have yet to receive an extension on this LOC.
The City is willing to accept a one year extension as was previously allowed, but the original will need to be hand
delivered to my office at City Hall by 2pm today. The City is of course also willing to accept a cashiers check. Otherwise
we have no option but to draw on the LOC. A standard LOC is attached for your use.
Alan Gibbs, P.E., CFM
City Engineer
Planning and Development Services
City of College Station
P.O. Box 9960
College Station, TX 77842
Office: (979) 764 -3570
Fax: (979) 764 -3496
Email: Gibbs. @csbcgov..
Alan Gibbs
Ilindsey @bvbank.com
8/20/2010 2:01 PM
Fwd: Novosad LOC #4000339100
Bridges, Erika; Cowell, Bob; Norton, Josh
Itrcrdt- rev04.doc
City of College Station
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file: / /C: \Documents and Settings \agibbs.CSTX \Local Settings \Temp \XPgrpwise \4C6E8A... 8/20/2010