HomeMy WebLinkAboutRESOLUTION - 23-97 - 5/13/1997 - LOC/METROPOLITAN FIBER SYSTEMRESOLUTION NO. 23-97
A RESOLUTION RELEASING IRREVOCABLE LETTER OF CREDIT NO.
SB1194 FROM BANQUE NATIONALE de PARIS, CHICAGO BRANCH, IN
THE AMOUNT OF $50,000.00 EXPIRING JUNE 8, 1994 (ACCEPTED
BY RES. NO. 69-93) AND ACCEPT IRREVOCABLE LETTER OF CREDIT
NO. 004545 FROM NORWEST BANK NEBRASKA, NATIONAL ASSOCIATION
EXPIRING JUNE 8, 1998 IN THE AMOUNT OF $5,000.00 TO SECURE
OBLIGATIONS OF THE FRANCHISE AGREEMENT OF CHICAGO FIBER OPTIC
CORPORATION d/b/a METROPOLITAN FIBER SYSTEMS OF CHICAGO, INC.
("MFS")
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. SB1194 from
Banque Nationale de Paris, Chicago Branch, in the amount of $50,000.00,
accepted by Resolution No. 69-93, and accept Irrevocable Letter of Credit
No. 004545 from Norwest Bank Nebraska, National Association in the amount
of $5,000.00 to secure the obligations of MFS to the Village of Elk Grove
Village pursuant to the terms and provisions of that certain Franchise
Agreement (accepted by Ordinance No. 2303) dated June 8, 1993 with Chicago
Fiber Optic Corporation, d/b/a Metropolitan Fiber Systems of Chicago, Inc.
("MFS"). Said Letter of credit expiring June 8, 1998.
Section 2: That this Resolution shall be in full force and effect
from and after its passage and approval according to law.
VOTE:
AYES. 6
NAYS:
0 ABSENT: 0
PASSED this
13th
day of
May , 1997.
APPROVED this
13th
day of
May , 1997.
Craig B. Johnson
Village President
ATTEST:
Patricia S. Smith
Village Clerk
ATAR
NpRWllrBANKS
March 25, 1997
BENEFICIARY:
Village of Elk Grove Village
901 Wellington Avenue
Elk Grove Village, Illinois 60007-3499
Attn: Village Manager
Norwest Bank Nebraska, N.A.
Post Office Box 3408
Omaha, Nebraska 68103
At the request and for the account of Chicago Fiber Optic Corporation, dba Metropolitan
Fiber Systems of Chicago, Inc. ("MFS"), we, Norwest Bank Nebraska, National
Association, hereby establish this Irrevocable Letter of Credit No. 004545 in your favor
in the amount of Five Thousand and No/100 U.S. Dollars ($5,000.00) to secure the
obligations of MFS to you pursuant to the terms and provisions of that certain Franchise
Agreement dated June 8, 1993 (the "Franchise Agreement") in accordance with the
terms and conditions hereinafter set forth.
Funds under this Letter of Credit are available to you against a beneficiary's signed
statement reading: "Chicago Fiber Optic Corporation, Inc., dba Metropolitan Fiber
Systems of Chicago, Inc. ("MFS") has defaulted (and any applicable grace or cure
period has expired) in all or a part of its obligations under the Franchise Agreement,
and MFS has been in such default for five (5) days or more."
We hereby undertake to honor your draft(s) under and in compliance with the terms of
this Letter of Credit if presented to us on or before June 8, 1998, to the Attention of the
International Department, Norwest Bank Nebraska, National Association, 1919
Douglas, Omaha, Nebraska 68102. Draft(s) dawn under this Letter of Credit must bear
upon their face(s) the words: "Drawn under the Norwest Bank Nebraska, National
Association, Omaha, Nebraska, Letter of Credit No. 004545 issued March 25, 1997."
It is a condition of the Letter of Credit that it shall be deemed automatically extended
without amendment for one year from the present or any future expiration date hereof,
unless ninety (90) days prior to any such date we shall notify you in writing by express
courier service that we elect not to consider this Letter of Credit renewed for any such
additional period.
This credit will be subject to Uniform Customs and Practice for Documentary Credits
(1993 Revision) International Chamber of Commerce Publication No. 500 or any
successor publication.
NORWEST BANK NEBRASKA, NATIONAL ASSOCIATION
e oreland
Vice President