HomeMy WebLinkAboutIrrevocable Letter of Credit - Mutual Bank of Behalf of Cleveland Woods Development Co., LLC1316 COUNTY-Crry BUILDING
227 W. JEFFERSON BOULEVARD
Soti'm BL'xi). INDIANA 46601-183 0
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January 23, 2018
Shelley Pulaski
Mutual Bank
4100 Edison Lakes Parkway, Suite 300
Mishawaka, IN 46545
RE: Irrevocable Letter of Credit No. 2544726682
Company: Cleveland Woods Development Co., LLC
Dear Ms. Pulaski:
PHONE 574/235-9251
FAX 574/ 235-9171
The Board of Public Works, at its meeting of January 23, 2018, approved the above referenced
Letter of Credit in the amount of $61,870 for sanitary sewer and municipal water
improvements for Fernwood Phase 111, Section 2A.
Enclosed is a copy for your files.
If you have any further questions regarding this matter, please call this office at (574) 235-
9251.
Sincerely,
Linda M. Martin, Clerk
Enclosure
c: Donna Hanson, Engineering
Kara Boyles, Engineering
GAILY A.Gii,ur SUZANNA M. FIzITZBERG ELIZABETH A. MARADIK JAMEs A. MUELLER THERESE J. DoitAu
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Letter of Credit No 2544726682
BENEFICIARY:
Board of Public Works
Attn: Linda Martin
City of South Bend
1.316County City Building
South Bend, In 46601
Dear Board of Public Works,
We hereby open our Irrevocable Letter of Credit in your favor available by your drafts drawn on MutualBank at
Sight for any sums not exceeding in total of $61,870.00 U.S. Dollars for account Cleveland Woods
Development Co., LLC.
The purpose of this Letter of Credit is to guarantee funds, not to exceed the amount referred to above, for
payment towards the cost of completing Sanitary Sewer and Municipal Water in Fernwood Phase III — Section
Two -A.
Drafts trust be accompanied by:
1. Your signed statement certifying that the fiends drawn hereunder are due you on account of the
Cleveland. Woods Development Co., LLC, as a result of the following:
A.) Failure to complete Sanitary Sewer and Municipal `Hater in Fernwood Phase III— Section Two -A
B.) A photocopy of unpaid i.nvoice(s).
OR
2. Your signed statement certifying that:
A.) The funds drawn hereunder represent the amount of payments you have received from or for the
account of Cleveland Woods Development Co., LLC with 90 days prior to the occurrence of one the
following: (i) the filing of a petition by or against Cleveland Woods Development Co., LLC with a
United States Bankruptcy Court; (ii) the making by Cleveland. Woods Development Co., LLC
became the subject of any proceeding, voluntary or involuntary, which under applicable State or
Federal law could result in the return of such payment(s), and
B.) The amount of such payment(s) has been (or will promptly after payment of the accompanying draft
be) returned to Cleveland 'Woods Development Co., IsLC or otherwise to the appropriate person.
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4100 Edison Lakes Parkway, Suite 300 . PCB. Box 528. Mishawaka, IN 46546-0528 • Phone 574-277-4200.800-400-0433
Each draft must bear on its face the clause,
"Drawn under Letter of Credit No. 2544726682 dated January 31, 2018 of MutualBank".
In the event that you receive, prior to the expiration date herein set forth, any payment (from a source other than
drafts drawn under this Letter of Credit) for invoices issued by your various factored clients to Cleveland
Woods Development Co., LLC which have been assigned to you, and within ninty (90) days after receipt of
said payment (i) a petition is filed by or against Cleveland Woods Development Co., LLC with United States
Bankruptcy Court; (ii) Cleveland Woods Development Co., LLC is the subject of any other proceeding,
voluntary or involuntary, which under applicable State or Federal law could result in the return of such
payment, then the expiration date hereof shall automatically be extended to a date that is on hundred twenty
(120) days after the date of such filing, assignment or proceeding and, if this letter of credit has previously
expired, our obligations hereunder shall be reinstated up to the amount of such payment only, but in no event
more than $61,870.00 in the aggregate.
This Letter of Credit shall cover invoices issued or dated prior to, on or after the date hereof.
Except so far as otherwise expressly stated herein, this Letter of Credit is subject to the "Uniform Customs and
Practice of Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600,"
This Irrevocable Letter of Credit expires at the address above with our close of business on January 31, 2019, It
is a condition of this Letter of Credit that the expiration date shall automatically extend for an additional one
year from the present expiration date, unless thirty (30) days prior to such maturity date we shall notify you in
writing that we elect not to renew this Letter of Credit for such additional period.
We hereby agree with you that drafts draw under and in compliance with the terms of this Letter of Credit will
be duly honored if presented to MutualBank on or before January 31, 2019 (or as such expiration date may be
extended pursuant to the provisions hereof).
Sincerely,
Shelley Pulaski
Assistant Vice President
Commercial Banking
MutualBank