Revised 1/2011 1 [BANK LETTERHEAD]
IRREVOCABLE STANDBY LETTER OF CREDIT NO. _____________
Date: __________
Beneficiary: Town of Cary Letter of Credit No.: _______
316 N. Academy Street Amount: $_______
PO Box 8005 In words: ________________
Cary, North Carolina 27513 ___________Dollars
We, ________________, hereby establish our Irrevocable Letter of Credit in favor of the Town of Cary, a North Carolina municipal corporation, at the request and for the account of
(Developer/Applicant Name), for an amount or amounts not to exceed a total of ________________ Dollars ($_______).
This Letter of Credit is subject to the following terms and conditions:
1. Effective Date: __________, 200_.
Expiration Date: ____, 20__ subject to the automatic extensions discussed below.
2. Funds under this Letter of Credit are available by sight draft(s) drawn on us and marked
“Drawn under (Bank Name, Point of Contact to include complete address, Phone No. and Fax No.), letter of Credit No. ____, dated (Mo/Day/Yr.).”
3. This Letter of Credit is established for the use and benefit of the Town of Cary by reasons of (Developer/Applicant Name) failure to comply with the provisions of the Cary Land
Development Ordinance Section 4.4.6, G7b The following statement signed by an authorized designee of the Town must accompany the sight draft:
(Developer/Applicant Name) has not complied with the requirements of the Cary Land
Development Ordinance _____________. The Town of Cary therefore requests the payment of ____.”
4. It is a condition of this Letter of Credit that it will be automatically extended for periods of one (1) year each from the present or any future expiration date, unless we (1) notify the Town of Cary, located at 316 N. Academy Street, P.O. Box 8005, Cary, North Carolina 27512-8005, ATTN: Charles Brown ([email protected]) in writing by certified mail at least ninety (90) days prior to such expiration date that we elect not to further extend this Letter of Credit.
5. Except as stated above, no modifications or revocations may be made by the undersigned to this Letter of Credit without the express written approval of the Town. This Letter of Credit is neither negotiable nor assignable.
6. Partial drawings are permitted.
7. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored on due presentation and delivery of documents, which may be done by first class mail, facsimile, in person, or by any other reasonable business practice, on or prior to the expiration, or any extension thereof, of this Letter of Credit.
This Letter of Credit shall be governed by the laws of the State of North Carolina (including without limitation, the Uniform Commercial Code as in effect in the state of North Carolina) and the 2007 Revision of the Uniform Customs and Practice for Documentary Credits of the
International Chamber of Commerce (Publication 600), but in the event of any conflict, the laws of the state of North Carolina will control. Communications with respect to this Letter of Credit shall be addressed to us at the address shown above.
Revised 1/2011 2 By:
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