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HomeMy WebLinkAboutRESOLUTION - 69-93 - 11/9/1993 - LOC/CHICAGO FIBER OPTIC CORP MFS RESOLUTION NO. 69-93 A RESOLUTION ACCEPTING AN IRREVOCABLE LETTER OF CREDIT NO. SB1194 FROM BANQUE NATIONALE de PARIS, CHICAGO BRANCH, IN THE AMOUNT OF $50,000.00 EXPIRING JUNE 8, 1994 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 Du Page, State of Illinois: Section 1 : That the President and Board of Trustees do hereby authorize the acceptance of Irrevocable Letter of Credit No. SB1194 from Banque Nationale de Paris , Chicago Branch, in the amount of $50,000.00 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, 1994. Section 2: That this Resolution shall be in full force and effect from and after its passage and approval according to law. PASSED this 9th day of November 1993. APPROVED this 9th day of November 1993. Dennis J. Gallitano Village President ATTEST: Patricia S. Smith Village Clerk B"QUE NATIONALE DE PARIS Page 1 of 6 } _ . Chicago Branch 200 North La Salle Street - Chicago, Illinois 60601 OUR REFERENCE NUMBER SB1194 Telephone: 13121977-2200 DATE August 3, 1993 Village of Elk Grove Village 901 Wellington Avenue Elk Grove Village, Illinois 60007-3499 Attention: Village Manager Gentlemen: At the request and for the account of Chicago Fiber Optic Corporation , d/b/a Metropolitan . Fiber Systems of Chicago, Inc. ( "MFS" ) , we, Banque Nationale de Paris , Chicago Branch, hereby establish this Irrevocable Letter of Credit No. SB1194 ( the "Letter of Credit" ) in your favor to secure the obligations of MFS to you pursuant to the terms and provisions of that certain Franchise Agreement, dated June 08, 1993 ( the "Franchise Agreement" ) in accordance with the terms and conditions hereinafter set forth. 1 . Expiration . This Letter of Credit automatically shall expire at the close of business on the earlier of the following : (a) a ' initial anniversary d ioty ( 90 ) days prior to sa%niv1j0ar9-:jat4j5wejiot1ey you in writing , via c6ftifTbd Z= regf�t - r0il ;, that we elect not to co=ideb, s ,.Lett , of- Crmdit renewed for any fLEjhe�„ n� 1 ):year`"` ri ( b) ou" ate in the form of Ex ° ropriately completed, together with this Letter of Credit; or ( c) payment of the Maximum Credit under this Letter of Credit. 2 . Maximum Credit. The maximum aggregate credit available under this Letter of Credit shall be Fifty Thousand and No/100 U . S. Dollars ($50 , 000 .00 ) (the "Maximum Credit" ) . 3 . Reduction of Maximum Credit. In the event this Letter of Credit shall not have otherwise expired, this Letter of Credit will be reduced as of the date of our receipt of your certificate in the form of Exhibit 1 attached hereto, appropriately completed, so that the Maximum Credit provided herein shall be equal , as of such date, to Twenty Five Thousand and No/100 U. S . Dollars ( $25 , 000 . 00 ) . In the event that this Letter of Credit shall not have otherwise expired, the Letter of Credit shall be further reduced one ( 1 ) year after our receipt of the above notice, so VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch lav/1��%i0 Form BNPC 30-5-87 Authorized Signature Countersignature ORIGINAL CAROLINE MIC14EL 13"QUE NATIONALE DE PARIS Page 2 of 6 # k d Chicago Branch 200 North LaSalle Street - Chicago, Illinois 60601 OUR REFERENCE NUMBER SB1194 Telephone: (312) 977-2200 DATE August 3, 1993 that the Maximum Credit provided herein shall be equal , as of such date, to Five Thousand and No/100 U . S. Dollars ( $5 ,000 .00) . 4. Drawing . You may make one or more draws on this Letter of Credit for a sum or sums in the aggregate not exceeding the Maximum Credit. 5 . Documents To Be Presented. Funds under this Letter of Credit are available to you against: (a) your draf-t in an amount not exceeding the Maximum Credit stating on its face "We hereby draw the amount of ( $ ) U.S. Dollars under Banque Nationale de Paris, Chicago Branch Letter of Credit No. SB1194" ; and ( b) a certificate signed by you in the form of Exhibit A attached hereto, appropriately completed . 6 . Method and Notice of Presentment. The documents required by Paragraph 5 ( a "demand for payment" ) may be delivered to us in person , by mail o' vice. A demand for payment shall be siness Days prior to the payment date 40cijien yl6ffr c eft duty ig our business hours on a Business Dayaprttlr td=the #'xpt'SAti h4teof at our office at 200 North LaSalle Stre "te.2400 , ioago ,„,Illinois 60601 , Attn: Internatioanl Depame" t. depand ;fir t shall be deemed to have been present on th to gtur4 y ' °, p ed by us . "Business Day" means any day or legal holiday on which banking inst` i orized or required by law to close. 7 . Time and Method of Payment. (a) If demand for payment is made in strict conformity with the terms and conditions hereof , payment shall be made to you no later than 1 :00 p.m. , Chicago Illinois time, on the payment date specified in your draft (provided such demand for payment is not subsequent to the expiration of the Letter of Credit ) or, if such payment date is not a Business Day , on the next succeeding Business Day. ( b) Payment under this Letter of Credit shall be made in immediately available funds in accordance with the reasonable instructions set forth in the drawing certificate with respect thereto. VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch �'�� � oO Form BNPC 30-5-87 Sig ature Cou ntersi nature.. 11, ORIGINAL B'' IQUE NATIONALE DE PARIS Page 3 of 6 Chicago Branch 200 North La Salle Street - Chicago, Illinois 60601 OUR REFERENCE NUMBER SB1194 Telephone: 13121977-2200 DATE August 3, 1993 8. Governing Law and Customs. Except so far as otherwise expressly stated herein , this Letter of Credit is subject to the "Uniform Customs and Practice for Documentary Credits , " 1983 Revision, International Chamber of Commerce Publication No. 400 ( the "Uniform Customs" ) . This Letter of Credit shall be deemed to be a contract made under the laws of the state of Illinois and, as to matters not covered by the Uniform Customs, shall be governed by and construed in accordance with the laws of such state and applicable federal law. 9 . - Irrevocability . This Letter of Credit is irrevocable. 10. Failure to Honor . If , within thirty ( 30 ) days of the date of any demand (made in conformity with this Irrevocable Letter of Credit) , we fail to honor same, we agree to pay all attorneys ' fees, court costs and other reasonable expenses incurred by the Village of Elk Grove Village in enforcing the terms of this Irrevocable Letter of Credit, 11 . Complete Agreement. This Letter of Credit, including the Exhibits hereto, sets forth in full the terms of our undertaking . Reference in this Letter of Credit to other documents or instruments is for identification purposshall not modify or affect the terms here merr .or instruments to be deemed incorporated h ' in,,, »� We hereby agree itr y -oto, hono= your Xzaft drawn under and presented in strict citjpliiAnce i*I the-,'Jerm.Agjad conditions of this Letter of Credit. VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch Form BNPC 30-5-87 Authorized Signature Countersignature ORIGINAL CAROLINE mlCHEt. P'NQUE NATIONALE DE PARIS Page 4 of 6 Chicago Branch 200 North La Salle Street -Chicago,Illinois 60601 OUR REFERENCE NUMBER SB1194 Telephone: (3121977-2200 DATE August 3, 1993 EXHIBIT A CERTIFICATE TO ACCOMPANY DRAFT The undersigned, duly authorized representatives of the Village of Elk Grove Village ( the "Beneficiary" ) , hereby certify to Banque Nationale de Paris , Chicago Branch (the "Bank" ) with reference to Irrevocable Letter of Credit No. SB1194 issued by the Bank , (the "Letter of Credit" ) , that: 1 . Chicago Fiber Optic Corporation , Inc. , d/b/a, 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. 2 . The total amount of payments which are due to the Beneficiary either as direct payments due to the Beneficiary under the Franchise Agreement or amounts for reimbursement of the Beneficiary' s costs and expenses incurred in connection with the satisfaction of MFS' obligations under the Franchise Ag' 3. The amount of thg dr ac p thI Certificate does not exceed the lesser of =Cl1e umecifedxn ra'g� aph 2 above and the remaining credit avai > 11 e: ilnde the yLet r t7f gftdit, after reduction for the aggregate of a p7vigs cEpaws redo ns. 4 . Any capital , a t defined shall have its respective meanngfi red it. 5 . ( Insert Payment Instructions. ) IN WITNESS WHEREOF, the Beneficiary has caused its duly authorized representatives to execute and deliver this certificate as of the day of 19 . VILLAGE OF ELK GROVE VILLAGE By: Name: _ Title: By: --- Name: Title: VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch Form BNPC 30-5-87 Authorized Signat re Countersignature ORIGINAL CAROLINE MICHEL - P NQUE NATIONALE DE PARIS Page 5 of 6 e Chicago Branch 200 North La Salle Street -Chicago,Illinois 60601 Telephone: 13121977-2200 August 3 1993 OUR REFERENCE NUMBER 581194 DATE 9 � EXHIBIT B CERTIFICATE REGARDING SATISFACTION OF ALL OBLIGATIONS The undersigned, duly authorized representative of the Village of Elk Grove Village ( the "Beneficiary" ) , hereby certify to Banque Nationale de Paris, Chicago Branch ( the "Bank" ) with reference to Irrevocable Letter of Credit No . SB1194 issued by the Bank (the "Letter of Credit" ) , that : 1 . The obligations of Chicago Fiber Optic Corporation, Inc . , d/b/a Metropolitan Fiber Systems of Chicago , Inc . ( "MFS" ) to the Beneficiary pursuant to the Franchise Agreement have been fully satisfied in accordance with the terms of the Franchise Agreement . . 2 . There are no claims of any kind or nature outstanding against the Beneficiary or MFS arising out of any acts or omissions of MFS relating to the Franchise Agreement . 3 . The Letter of Credit is attached hereto and being submitted to you herewith. 4 . Any capitalizQ term d h i end potz fined shall have its respective meaning as 461 fart n thi5: Le$ er ;'Sf gXedit. K IN WITNESS WHEREO8Zt Be fir;- ry 'Eis its duly authorized representatives to exem"te an `" li' t icate as of the day of VILLAGE OF ELK GROVE VILLAGE By: Name : Title : By: Name: Title : VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch Q14 Form BNPC 30.5-87 1Authorized Signa tu re Countersignature re CAROLINE MICHKI-. B- 'QUE NATIONALE DE PARIS Page 6 of 6 g Chicago Branch 200 North La Salle Street -Chicago,Illinois 60601 OUR REFERENCE NUMBER SB1194 Telephone: (312)977-2200 DATE August 3, 1993 EXHIBIT C CERTIFICATE REGARDING COMPLETION OF CONSTRUCTION OF THE SYSTEM The undersigned, duly authorized representatives of the Village of Elk Grove Village (the "Beneficiary" ) , hereby certifies to Banque Nationale de Paris, Chicago Branch (the "Bank" ) with reference to Irrevocable Letter of Credit No. SB1194 issued by the Bank (the "Letter of Credit" ) , that: 1 . Chicago Fiber Optic Corporation , Inc. , d/b/a Metropolitan Fiber Systems of Chicago, Inc. ( "MFS" ) has completed construction of the Telecommunications Systems in accordance with the terms of the Franchise Agreement. 2 . There are no claims of any kind or nature outstanding against the Beneficiary or MFS arising out of any acts or omissions of MFS relating to the Franchise Agreement. 3 . Any capitalized term used herein and not defined shall have its respective meaning as redit. IN WITNESS WHEREPF, ,4 the 8#0 f i 63,.%rye, s gad its duly authorized representatives to exe=to nd2.deliv(tr fl s t%rtWicate as of the — day of PYLA ELK GROVE VILLAGE r Name: Title: By : — —— Name: Title: VERY TRULY YOURS, BANQUE NATIONALE DE PARIS Chicago Branch Form BNPC 30.5-87 Authorized Signature - Countersignature ORIGINAL CAROLINE MICWY,