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HomeMy WebLinkAboutRESOLUTION - 47-98 - 10/13/1998 - LOC RELEASE & ACCEPTRESOLUTION NO. 47-98 A RESOLUTION RELEASING IRREVOCABLE LETTER OF CREDIT NO. 50079807 BANKBOSTON, N.A. EXPIRING DECEMBER 31, 1998 IN THE AMOUNT OF $20,000.00 (ACCEPTED BY RES. NO. 4-98) AND ACCEPTING IRREVOCABLE STANDBY LETTER OF CREDIT NO. 3011948 BANK OF AMERICA NT&SA EXPIRING DECEMBER 31, 1999 IN THE AMOUNT OF $20,000.00 TO INSURE FAITHFUL PERFORMANCE BY GRANTEE MEDIA ONE OF NORTHERN ILLINOIS, INC. NOW, THEREFORE BE IT RESOLVED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois: Section 1: That the President and Board of Trustees do hereby authorize the release of Irrevocable Letter of Credit No. 50079807 (Accepted by Resolution No. 4-98) in the amount of $20,000.00 from BankBoston, N.A.; said Letter of Credit expiring December 31, 1998. Section 2: That the President and Board of Trustees do hereby authorize the acceptance of Irrevocable Standby Letter of Credit No. 3011948 in the amount of $20,000.00, dated September 14, 1998, from Bank of America NT&SA to secure the obligations of Media One of Northern Illinois, Inc. pursuant to the terms and provisions of that certain Franchise Agreement adopted by Resolution No. 13- 97. Said Letter of Credit expiring December 31, 1999. Section 3: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 5 NAYS: 0 ABSENT: 1 PASSED this 13th day of October '1998. APPROVED this 13th day of October '1998. Craig B. Johnson Village President ATTEST: 'atricia S. Smith Village Clerk Loc59a.doc lfl Bank of America PAGE: 1 DATE: SEPTEMBER 14, 1998 IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER: 3011948 APPLICANT REFERENCE NUMBER: MOIL07 BENEFICIARY APPLICANT VILLAGE OF ELK GROVE MEDIAONE OF NORTHERN ILLINOIS, INC. ATTN: ASSISTANT VILLAGE MANAGER 688 INDUSTRIAL DRIVE 901 WELLINGTON AVE ELMHURST, IL 60126 ELK GROVE, IL 60007 AMOUNT USD 20,000.00 TWENTY THOUSAND AND 00/100'S US DOLLARS EXPIRATION DECEMBER 31, 1999 AT OUR COUNTERS WE HEREBY ESTABLISH IN YOUR FAVOR OUR IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 3011948 WHICH IS AVAILABLE WITH BANK OF AMERICA NT & SA BY PAYMENT AGAINST PRESENTATION OF THE ORIGINAL OF THIS LETTER OF CREDIT AND YOUR DRAFTS AT SIGHT DRAWN ON BANK OF AMERICA NT & SA, ACCOMPANIED BY THE DOCUMENTS DETAILED BELOW: BENEFICIARY'S SIGNED STATEMENT CERTIFYING THAT MEDIAONE OF NORTHERN ILLINOIS, INC. HAS FAILED TO COMPLY WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT WITH THE VILLAGE OF ELK GROVE. IT IS A CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED FOR ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION DATE HEREOF, UNLESS WE NOTIFY YOU AT LEAST SIXTY (60) DAYS PRIOR TO TO THE THEN CURRENT EXPIRATION DATE THAT WE ELECT NOT TO EXTEND THIS LETTER OF CREDIT. THIS LETTER OF CREDIT REPLACES BANK OF BOSTON LETTER OF CREDIT NUMBER 50079807 EFFECTIVE DECEMBER 31, 1998. WE HEREBY ENGAGE WITH THE BENEFICIARY THAT DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT WILL BE DULY HONORED UPON PRESENTATION, AS SPECIFIED HEREIN. THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERQE PUBLICATION NO. 500. 13RE9ULT -------------------- - - ----- ---- AUTHORIZED SIGNA E CONSISTS OF 1 PAGE(S). THIS DOCUMENT ORIGINAL Bonk of A srloa NTBSA TraBa Ogeratlons Cana, 5855 333 South Beaudq Avenue, 1M Flr., Lae Mgaea, CA 80017 CABLE ADDRESS: Telex W189852 SANK ER SFO• SWIFT ADDRESS BOFAUSSS CORA-1041A taus(Rp 80)