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HomeMy WebLinkAboutBonding, Signing, Recording Final PlatCITY OF 1�Idl� IDAHO ,}j tiFC�N'eR /. TREASURE VN EY six GE 1903 MAYOR Tammy de Weerd CITY COUNCIL MEMBERS Keith Bird Joseph W. Borton Charles M. Rountree Shaun Wardle CITY DEPARTMENTS City Attorney/HR 703 Main Street 898-5506 (City Attorney) 898-5503 (HR) Fax 884-8723 Fire 540 E. Franklin Road 888-1234/fax 895-0390 Parks & Recreation 11 W. Bower Street 888-3579/fax 898-5501 Planning 660 E. Watertower Lane Suite 202 884-5533/fax 888-6844 Police 1401 E. Watertower Lane 888-6678/fax 846-7366 Public Works 660 E. Watertower Lane Suite 200 898-5500/fax 895-9551 - Building 660 E. Watertower Lane Suite 150 887-2211 / fax 887-1297 - Wastewater 3401 N. Ten Mile Road 888-2191 / fax 884-0744 - Water 2235 N.W. 8th Street 888-5242/fax 884-1159 May 15, 2007 Mr. William Miller Idaho Independent Bank 317 North 9th Street Boise, ID 83702 343-5565 Re: Return Letter of Credit for Reserve Subdivision for C-7 Development, LLC After a site inspection and review of the Reserve Subdivision Project by the Planning Department and the Public Works Department, it has been determined to release the Letter of Credit of $48,246. 00 to you for the completion of the landscaping site improvement. Please use this letter as authorization for Idaho Independent Bank to release the Irrevocable Letter of Credit No, 30207. If you have any questions please contact me. Thank you for your cooperation. Sincerely William G. Berg, Jr. City Clerk Enclosure CITY FALL 33 EAST IDAHO AVENUE MERIDIAN, IDAHO 83642 (208) 888-4433 CITY CLERK- FAX 888-4218 FINANCE & UTILITY BILLING -FAX 887-4813 MAYOR'S OFFICE -FAX 884-8119 Printed on recycled paper IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC Lender: IDAHO INDEPENDENT BANK 1979 N. LOCUST GROVE ROAD BOISE OFFICE MERIDIAN, ID 83642 317 NORTH 9TH STREET BOISE, ID 83702 Beneficiary: CITY OF MERIDIAN (208) 343-5565 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30207 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 06-15-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of Forty-eight Thousand Two Hundred Forty-six & 00/100 Dollars ($48,246.00) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF LANDSCAPING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30207 DATED 11-01-2006," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shal! he restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: November 1, 2006 IRREVOCABLE LETTER OF CREDIT Loan No: 3391207 (Continued) Page 2 LENDER: IDAHO INDEPENDENT BANK By: lAthorizved Signer LASER PRO L—dind, -1, 5.33.00.006 Copr. 4111— Financial Solutions, Inc. 1997, 2006. All R,gl- Reserved. ID P:IHARLANDIPROSUITE\CFIILPLIC43LOC.FC TR -12027 PR 14 F CITY OF F,# =a � IDAHO j CFN%e R "" TREASURE V ABY SINCE 7903 MAYOR Tammy de Weerd CITY COUNCIL MEMBERS Keith Bird Joseph W. Borton Charles M. Rountree Shaun Wardle CITY DEPARTMENTS City Attorney/HR 703 Main Street 898-5506 (City Attorney) 898-5503 (HR) Fax 884-8723 Fire 540 E. Franklin Road 888-1234/fax 895-0390 Parks & Recreation 11 W. Bower Street 888-3579 / fax 898-5501 Planning 660 E. Watertower Lane Suite 202 884-5533/fax 888-6844 Police 1401 E. Watertower Lane 888-6678/fax 846-7366 Public Works 660 E. Watertower Lane Suite 200 898-5500/fax 895-9551 - Building 660 E. Watertower Lane Suite 150 887-2211 / fax 887-1297 - Wastewater 3401 N. Ten Mile Road 888-2191/fax 884-0744 - Water 2235 N.W. 8th Street 888-5242 / fax 884-1159 May 15, 2007 Mr. William Miller Idaho Independent Bank 317 North 9th Street Boise, ID 83702 343-5565 Re: Return Letter of Credit for Reserve Subdivision for C-7 Development, LLC After a site inspection and review of the Reserve Subdivision Project by the Planning Department and the Public Works Department, it has been determined to release the Letter of Credit of $109,521.20 to you for the completion of sewer, water, street lights, fencing, pressurized irrigation and gravity irrigation. Please use this letter as authorization for Idaho Independent Bank to release the Irrevocable Letter of Credit No. 30208. If you have any questions please contact me. Thank you for your cooperation. Sincerely William G. Berg, Jr. City Clerk Enclosure CITY FALL 33 EAST IDAHO AVENUE MERIDIAN, IDAHO 83642 (208) 888-4433 CITY CLERK —FAX 888-4218 FINANCE & UTILITY BILLING— FAX 887-4813 MAYOR'S OFFICE —FAX 884-8119 Printed on recycled paper IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC 1979 N. LOCUST GROVE ROAD MERIDIAN, ID 83642 Lender: IDAHO INDEPENDENT BANK BOISE OFFICE 317 NORTH 9TH STREET BOISE, ID 83702 (208) 343-5565 Beneficiary: CITY OF MERIDIAN 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30208 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 05-01-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of Thirty-three Thousand Six Hundred Ninety-eight & 80/100 Dollars ($33,698.80) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF SEWER, WATER, GRAVITY IRRIGATION, PRESSURE IRRIGATION, STREET LIGHTS AND FENCING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. THIS LETTER OF CREDIT IS A RENEWAL AND EXTENSION OF THE ORIGINAL LETTER OF CREDIT DATED NOVEMBER 1, 2006. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30208 DATED 01-29-2007," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had. never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: January 29, 2007 IRREVOCABLE LETTER OF CREDIT Loan No: 3391207 (Continued) Page 2 LENDER IDAHO IND PEND T BANK By: th iz d er LASER PRO Len61n0, Ver. 5.30.00.003 C., Harland Finan 6.r1 Solutions, Inc. 1997, 2007. All A,gl s Resery d - ID P:\HARLAND\PROSUITE\CFI\LPL\C43LOC.FC TR -12876 PR 14 3111i ) k_ -12M" IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC Lender: IDAHO INDEPENDENT BANK 1979 N. LOCUST GROVE ROAD BOISE OFFICE MERIDIAN, ID 83642 317 NORTH 9TH STREET BOISE, ID 83702 Beneficiary: CITY OF MERIDIAN (208) 343-5565 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30208 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 01-31-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of One Hundred Nine Thousand Five Hundred Twenty-one & 20/100 Dollars ($109,521.20) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF SEWER, WATER, GRAVITY IRRIGATION, PRESSURE IRRIGATION, STREET LIGHTS AND FENCING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30208 DATED 11-01-2006," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: November 1, 2006 SURETY SPREADSHEET Project Name: RESERVE Date Compiled: 11/6/2006 Letter of Credit/Bond No.: 30208 Issued By: IDAHO INDEPENDENT BANK Expiration Date: 4`/31/2007 5/1/2007 Check No.: Party Responsible Date Signed Off/ Item Unfinished Partial Surety For Sign -Off Person Comments Sanitary Sewer -internal $15,331.60 $0.00 $15,331.60 Public Works 1/11/07 TJ Sanitary Sewer -offsite $0.00 $0.00 Water -internal $0.00 $0.00 Public Works Water- Offsite $20,543.20 $0.00 $20,543.20 Public Works 1/24/07 TJ Street Lights $5,956.00 $595.60 $6,551.60 Building 1/17/07 JW Landscaping $0.00 $0.00 PZ Pathways $0.00 $0.00 PZ Fencing $30,360.00 $3,036.00 $33,396.00 PZ 1/8/07 JL Tiling $0.00 $0.00 PZ Pressurized Irrigation $25,768.80 $0.00 $25,768.80 SETTLERS 4/11/07 SETTLERS Gravity Irrigation $7,930.00 $0.00 $7,930.00 SETTLERS 4/11/07 SETTLERS Other: $0.00 $0.00 PW $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 TOTAL: $105,889.60 $3,631.60 $109,521.20 Authorized reduction 48727.6 as of 1/12/07 kg authorized reduction 6551.6 as of 1/18/07 kg Authorized reduction 20543.2 as of 1/25/07 kg BALANCE TO REMAIN: $33,698.80 5/1/07 READY TO RELEASE IN FULL KG Page 1 of 1 Will Berg From: Karie Glenn Sent: Tuesday, May 01, 2007 3:19 PM To: Will Berg Subject: Reserve.LOC RELEASE Attachments: Reserve.xls attached detail sheet ready to be released in full kg 5/11/2007 SURETY SPREADSHEET Project Name: RESERVE -LAND Date Compiled: 11/6/2006 Letter of Credit/Bond No.: 30207 Issued By: IDAHO INDEPENDENT BANK Expiration Date: 6/15/2007 Check No.: Party Responsible Date Signed Off/ Item Unfinished Partial Surety For Sign -Off Person Comments Sanitary Sewer -internal $0.00$0.00 Public Works Sanitary Sewer -offsite $0.00 $0.00 Water -internal $0.00 $0.00 Public Works Water- Offsite $0.00 $0.00 Public Works Street Lights $0.00 $0.00 Building Landscaping $43,860.00 $4,386.00 $48,246.00 PZ 4/27/07 CH Pathways $0.00 $0.00 PZ Fencing $0.00 $0.00 PZ Tiling $0.00 $0.00 PZ Pressurized Irrigation $0.00 $0.00 NMID Gravity Irrigation $0.00 $0.00 NMID Other. $0.00 $0.00 PW $0.00 $0.00' $0.00 $0.00 $0.00 $0.00 TOTAL: $43,860.00 $4,386.00 $48,246.00 Authorized reduction BALANCE TO REMAIN: $48,246.00 5/1/07 READY TO RELEASE IN FULL KG Page 1 of 1 Will Berg From: Karie Glenn Sent: Tuesday, May 01, 2007 3:22 PM To: Will Berg Subject: Reserve-Iand.LOC RELEASE Attachments: Reserve-land.xls attached detail sheet ready to release in full. kg 5/11/2007 RECEIVED FEB -1 2007 City of Meridian City Clerk Office PREADSHEET me: RESERVE piled: 11/612006redit/Bond No.: 30208 F Issued By: IDAHO INDEPENDENT BANK Expiration Date: 444420" 5/1/2007 Check No.: kern► Unfinished Pel surety Party Responsible For Sign -Off Date Signed Off/ Person Comments Sanitary Sewer -internal $15,331.60 $0.00 $15.331.60 Public Works 1/11/07 TJ Sanitary Sewer -offsite Water -internal Water- Offsite $0.00 $0.00 $0.00 $0.00 Public Works $20,543.20 $0.00 $20,543.20 Public Works 1/24/07 TJ Street Lights $5,956.00 $595.60 $6,551.60 Building 1/17/07 JW Landscaping $0.00 $0.00 PZ _ -- Pathways $0.00 $0.00 PZ — Fencing $30,360.00 $3,036.00 $33,396.00 PZ 1/8/07 JL Tiling $0.00 $0.00 PZ -- Pressurized Irrigation $25,766.80 $0.00 $25.768.80 SETTLERS -- Gravity Irrigation $7,930.00 $0.00 $7.930.00 SETTLERS Other. $0.00 $0.00 PW $0.00 $0.00 $0.00 $0.00 $0.00 1 $0.00 TOTAL: $105,889.60 $3,631.60 Authorized reduction authorized reduction Authorized reduction BALANCE TO REMAIN: $109,521.20 48727.6 as of 1/12107 kg 6551.6 as of 1/18/07 kg 20543.2 as of 1125107 kg $33,698.80 A -lcta* ,DAIH- IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC Lender: IDAHO INDEPENDENT BANK 1979 N. LOCUST GROVE ROAD BOISE OFFICE MERIDIAN, ID 83642 317 NORTH 9TH STREET BOISE, ID 83702 (208) 343-5565 Beneficiary: CITY OF MERIDIAN 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30208 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 05-01-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of Thirty-three Thousand Six Hundred Ninety-eight & 80/100 Dollars ($33,698.80) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF SEWER, WATER, GRAVITY IRRIGATION, PRESSURE IRRIGATION, STREET LIGHTS AND FENCING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. THIS LETTER OF CREDIT IS A RENEWAL AND EXTENSION OF THE ORIGINAL LETTER OF CREDIT DATED NOVEMBER 1, 2006. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30208 DATED 01-29-2007," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of.this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: January 29, 2007 IRREVOCABLE LETTER OF CREDIT Loan No: 3391207 (Continued) Page 2 LENDER IDAHO IN PEND T BANK By: th iz d er LASER PRO Lending, Ver. 5.36.00.003 Col+ . Harlantl Flnanc 1 Sol1Hione, Inc. 1997, 2007. All Ri01— R -e-11 - ID P,\HARLAND\PR05OITE\CFI\LPL\C43LOC. FC TR 12976 PR 11 City of Meridian Public Works Dept. Memo To: Will Berg From: Lenard A Grady, P. E. CC: File, Karie, P & Z Staff Date: 11/6/06 Re: Reserve RECEIVE NOV - 6 2006 City of Meridian City Gerk Office I have signed the plat for the above project and am forwarding it to you for your signature. Based on our research of the project files, all conditions imposed by the Public Works Department and City Council have been met. I am also forwarding original letters of credit No. 30207 & 30208 (Idaho Independent Bank — dated 11/1/06) for $48,246.00 & $109,521.20. These represent surety for items, and in amounts, listed on the attached spreadsheet. Please call Gabe Welz w/ The Land Group @ 939-4041 when the plat is ready to be picked up. Please call me if you have any questions. Thank you. From the desk of.. Lenard A Grady, P.E. City Engineer Meridian Public Works Department 660 E. Watertower Lane, Suite 200 Meridian, Idaho 83642 (208)898-5500 Fax: (208) 898-9551 • Page 1 gmdylG� nerdiancitv.ore *Wmo� IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC Lender: IDAHO INDEPENDENT BANK 1979 N. LOCUST GROVE ROAD BOISE OFFICE MERIDIAN, ID 83642 317 NORTH 9TH STREET BOISE, ID 83702 (208) 343-5565 Beneficiary: CITY OF MERIDIAN 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30207 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 06-15-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of Forty-eight Thousand Two Hundred Forty-six & 00/100 Dollars ($48,246.00) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF LANDSCAPING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30207 DATED 11-01-2006," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: November 1, 2006 IRREVOCABLE LETTER OF CREDIT Page 2 Loan No: 3391207 (Continued) LENDER IDAHO INDEPENDENT BANK sy: A thorized Signer - ( ic_ LASER PRO Lendin, Vee. 5.33.00.004 Cope. Haelantl financial Solutions. Inc. 1911. 2006ID PITEI0 AlLPL\D 11L00.M TR -12021 PR19 *Wmo� IRREVOCABLE LETTER OF CREDIT Borrower: C-7 DEVELOPMENT, LLC Lender: IDAHO INDEPENDENT BANK 1979 N. LOCUST GROVE ROAD BOISE OFFICE MERIDIAN, ID 83642 317 NORTH 9TH STREET BOISE, ID 83702 (208) 343-5565 Beneficiary: CITY OF MERIDIAN 660 E. WATERTOWER LANE, SUITE 200 MERIDIAN, ID 83642 NO.: 30208 EXPIRATION DATE. This letter of credit shall expire upon the close of business on 01-31-2007 and all drafts and accompanying statements or documents must be presented to Lender on or before that time (the "Expiration Date"). AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of Beneficiary for a sum of One Hundred Nine Thousand Five Hundred Twenty-one & 20/100 Dollars ($109,521.20) (the "Letter of Credit"). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT C-7 DEVELOPMENT, LLC HAS FAILED TO PERFORM RELATIVE TO THE INSTALLATION OF SEWER, WATER, GRAVITY IRRIGATION, PRESSURE IRRIGATION, STREET LIGHTS AND FENCING TO THE RESERVE SUBDIVISION. THE SPECIFIC AREA OF NON-COMPLIANCE IS TO BE IDENTIFIED BY THE BENEFICIARY. Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non -conforming demand is made, Lender shall notify Beneficiary of Lender's dishonor on or before the time specified in the "Timing of Dishonor" paragraph below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER IDAHO INDEPENDENT BANK IRREVOCABLE LETTER OF CREDIT NO. 30208 DATED 1 1-01-2006," and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are not permitted under this Letter of Credit. PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer (in its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver, liquidator, successor, or other representative at law of the original Beneficiary; and B. The first immediate transfer (in its entirety, but not in part) by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee (i) by operation of law or (ii) a third party receiving transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. TIMING OF DISHONOR. Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three (3) Banking Days after Lender has received the last document forming Beneficiary's presentment (the "Three -Day Period"). Lender shall be entitled to rely upon such reason without regard to either (i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three -Day Period of any preliminary communication(s) from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three -Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, as most recently published by the International Chamber of Commerce (the "UCP") may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three (3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three -Day Period. "Banking Day" means any day, except Saturday, on which commercial banks located in Idaho are open. COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary, and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. NON -SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non -severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within this Letter of Credit. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the UCP. This Agreement has been accepted by Lender in the State of Idaho. EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above. Dated: November 1, 2006 IRREVOCABLE LETTER OF CREDIT Loan No: 3391207 (Continued) Page 2 LENDER: IDAHO717; NK P By: It. Au ori d igner LASER PRO Lending, Ver. 5.33.00.004 C., Harland Financial Solutions, Inc. 1997, 2— All Rill— R --d, ID P:\HARLAND%PROS UITE\CFI\LPL\C 43LOC. FC TR -12027 PR -14