R98-076 RESOLUTION NO. R98-~'~
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, APPROVING
AND ACCEPTING A LETTER OF CREDIT SUBMITTED
BY DAVID W. AND HEIDI M. DEGRAF IN
CONNECTION WITH THE EAST RIDGE PROJECT,
AND ISSUED BY COLONIAL BANK, IN THE AMOUNT
OF $82,000.00; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Commission of the City of Boynton
Beach, upon recommendation Of staff, does hereby accept the
above referenced Letter of Credit in the amount of Eighty-two
thousand and 00/100 Dollars ($82,000.00) as surety for the
construction of a water distribution and sewage collection
system as part of the East Ridge project in Boynton Beach.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. The City Commission of the City of Boynton
Beach, Florida hereby approves and accepts a Letter of Credit
submitted by David W. and Heidi M. DeGraf mn connection with
the East Ridge Project, and issued by Colonial Bank in the
amount of Eighty-two thousand and 00/100 Dollars ($82,000.00)
as surety for the construction of a water distribution and
sewage collection system zn accordance with the City of
Boynton Beach Land Development Regulations, and which is part
of the East Ridge project. A copy of the letter of credit is
attached as Exhibit
Section 2. The original letter of credit shall be
maintained by the City of Boynton Beach Finance Department.
Section 3. That this Resolution shall become
effective immediately upon passage.
PASSED AND ADOPTED this ~/ day of April, 1998.
CITY OF BOYNTON BEACH, FLORIDA
Mayor
ATTEST:
City Clerk
~O:o~
s:s~t~s of credit~hdge~
Commi s s i oner
Commissioner
Commi s s i one r
COLONIAL BANK
April 7, 1998
City of' Boynton Beach Building Department
1000 East Boynton Beach Boulevard
BOynton Beach, FL 33425
Gei. tlemen:
OUR IRREVOCABLE STANDBY LETTER OF CREDIT #98-102 ISSUED IN
YOUR FAVOR ON BEHALF OF DAVID W. AND HEIDI M. DEGRAF
We hereby open our IRREVOCABLE STANDBY LETTER OF CREDIT #98-102 in
ygur favor for the account of DAVID W. AND HEIDI M. DEGRAF in the
a~3regate amount of EIGHTY TWO THOUSAND AND N0/I00 US DOLLARS
($82,000.00) available by payment of your draft(s) at sight drawn
on us when accompanied by the following document(s):
A statement purportedly signed byan authorized representative-
of the CITY OF BOYNTON BEACH BUILDING DEPARTMENT stating, "the
funds drawn under this LETTER OF CREDIT are needed to pay for
the construction of a water distribution system and- sewage
collection in accordance with the City's land development code
in connection with the proposed EAST RIDGE PROJECT, and DAVID
W. AND HEIDI M. DEGRAF have failed to complete the work
stated," and,
2. The original LETTER OF CREDIT and any subsequent amendments.
It is a condition of this credit that it shall be deemed
automatically extended, without amendment, for additional one year
periods unless we notify you in writing at least 90 days before the
current or any future expiration date that we elect not to extend
t~is credit for any such additional one year period. Notice to the
C~ty that the LETTER OF CREDIT will expire, prior to the
performance of the obligations guaranteed by this LETTER OF CREDIT,
shall be deemed a default and shall entitle City to collect on this
LETTER OF CREDIT by presentation of sight draft(s) and a statement
purportedly signed by an authorized representative of the CITY OF
An Affiliate of Colonial BancGroup, Inc.
2000 Palm 13each Lakes Boulevard. West Palm Beach. Florida 33409
P.O. Box 3305. West Palm Beach. Florida 33402-3305
Telephone 561/683q600 / Fax 561/683-4532
v~'w, eolonialbank.eom
,S2q EQUAL OPPORTUNITY EMPLOYER
City of Boynton Beach Building Department
April 7, 1998
Page 2
BOYNTON BEACH BUILDING DEPARTMENT stating, "we are in receipt of
non-renewal notice for this LETTER OF CREDIT and the funds drawn
under this LETTER OF CREDIT are needed to pay for the construction
of a water distribution system and sewage collection in accordance
with the City's land development code in connection with the
proposed EAST RIDGE PROJECT, and DAVID W. AND HEIDI M. DEGRAF have
failed to complete the work stated."
This LETTER OF CREDIT is irrevocable and shall remain enforceable
until released by a resolution adopted by the City Commission or
the current or any future expiry date, whichever is earlier.
This LETTER OF CREDIT is enforceable
urisdiction in Palm Beach County,
nterpreted by Florida law.
in a court of competent
Florida, and is to be
Except so far as otherwise expressly stated herein, this credit is
s~bject to the Uniform Customs and Practice for Documentary Credits
(1993 revision), International Chamber of Commerce Publication No.
500' and in the event of any conflict, is to be interpreted by
Florida law. Litigation hereunder, if necessary, shall be in a
court of competent jurisdiction in Palm Beach County, Florida.
W
hereby agree with you that draft(s) drawn under and in
Dmpliance with the terms and conditions of this credit shall be
aly honored if presented with document(s) as specified and the
uiginal of this credit, at our office located at 2000 Palm Beach
~kes Boulevard, West Palm Beach, Florida, on or before the above-
s'~ated expiry date or any automatically extended date as provided
for herein. Draft(s) drawn under this credit must specifically
reference our LETTER OF CREDIT number.
mcm
V~ truly yours,
Dawn Calder
Vice President