R03-031 RESOLUTION NO. R03- O°ol
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA,
AUTHORIZING A REDUCTION IN THE LETTER OF
CREDIT ISSUED BY FIRST UNION NATIONAL BANK
(NO. SM418453C) FOR THE PROJECT KNOWN AS
VILLAS AT QUANTUM LAKES, INC., FROM
$279,734.77 TO $14,000; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the developer of this parcel, previously submitted a Letter of Credit
as surety for the completion of the potable water and sanitary sewer systems for Lots 59 -
61 in Quantum Park; and
WHEREAS, the installation is now completed, the systems have passed all
inspections, and all necessary documentation has been furnished to the City; and
WHEREAS, the surety may be reduced to 5% of the original value for the
remainder of the 1-year warranty period, upon receipt of either (1) an amended Letter of
Credit in the amount of $14,000, or (2) by substitution of a cash surety for the reduced
amount of $14,000, which action must occur simultaneously with the passage of this
Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed
i as being true and correct and are hereby made a specific part of this Resolution upon
adoption hereof.
Section 2. The City Commission of the City of Boynton Beach, Florida, based
upon the recommendation of staff, hereby approves a reduction of a Letter of Credit
S:\CA~RESO\Letters of Credit\Villas at Quantum Lakes Reduction in Surety.doc
issued by First Union National Bank (No. SM418453C) for the project known as Villas at
Quantum Lakes, Inc., being Lots 59-61 in Quantum Park, upon receipt of either (1) an
amended Letter of Credit in the amount of $14,000, or (2) by substitution of a cash surety
for the reduced amount of $14,000, which action must occur simultaneously with the
passage of this Resolution.
Section 3.
That this Resolution shall become effective immediately upon
passage.
PASSED AND ADOPTED this
ATTEST:
(Co
S:\CA~RESO\Letters of Credit\Villas at Quantum Lakes Reduction in Surety.doc
day of February, 2003.
May~r ' '
Commissioner
IRREVOCABLE STANDBY LETTER OF C~EDIT NUMBER SM~18453C
LETTER OF CREDIT AMOUNT I ISSUE DATE I EXPIRY DATE
! USD~7~,73~.77 ~ 0~/18/01 ~ 0~'/1~/02 L I
BENEFICIARY: APPLICANT:
CITY OF BOYNTON BEACH/UTILITIES VILLAS AT GUANTUM LAKES~ INC.
100 E. BOYNTON BEACH BLVD. 7 CORPORATE PLAZA
BOYNTON BEACH, FL 33437 NEWPORT BEACH, CA ~2660
~ENTLEMEN:
~E HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN YOUR FAVOR FOR THE
ACCOUNT OF THE ABOVE REFERENCED APPLICANT IN THE A99RE9ATE AMOUNT DF
USD279,734.77 WHICH IS AVAILABLE BY PAYMENT OF YOUR DRAFT(S> AT SIGHT DRAWN ON
OURSELVESWHEN ACCOMPANIED BY THE FOLLOWING/DOCUMENTS:
A STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED REPRESENTATIVE OF CITY OF
BOYNTON BEACH/UTILITIES STA'~INQ THAT
"AN AFFIDAVIT SIGNED BY AN AUTHORIZED AGENT OF THE CITY OF ~OYNTON BEACH
INDICATIN9 THAT THE AMOUNT DRAWN REPRESENTS THE TOTAL COST TO COMPLETE THE.
WATER AND SEWER IMPROVEMENTS FOR THE PROdECT ~NDWN AS THE VILLAS AT ~UANTUM
THIS IRREVOCABLE LETTER OF CREDIT' SETS FORTH IN FULL THE TERMS OF OUR
UNDERTAkINg. THIS UNDERTA~IN~ SHALL NOT IN ANY WAY BE MODIFIED~ AMEND~D~
AMPLIFIED OR INCORPORATED BY REFERENCE TO ANY DOCUMENT OR CONTRACT REFERRED
TO HEREIN.
WE HERE~Y A~REE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE
TERMS AND CONDITIONS OF THIS CREDIT SHALL BE DULY HONORED IF PRESENTED TOQETHER
WITH DOCUMENT(S) AS SPECIFIED ABOVE AND THE ORI9INAL OF THIS CREDIT, AT OUR
OFFICE LOCATED AT 8739 RESEARCH DRIVE - URP~, CHARLOT'FE~ NC ~826~, ATTENTION:
STANDBY LETTER OF CREDIT DEPARTMENT ON OR BEFORE THE/ ABOVE STATED EXPIRY DATE.
DRAFT(S) DRAWN UNDER THIS CREDIT MUST SPECIFICALLY REFERENCE OUR REDIT NUMBER
SM~18453C. ~
THIS CREDIT IS SUBJECT TO T~E INTERNATIONAL STANDBY PRACTICES 19V8,
INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 5VO ("ISPV8").
AUTHOR I~E"D Si~NAT~I~
FIRST UNION NATIONAL BANP~
gBP
?
10/18/01
BENEFICIARY:
CITY, OF BOYNTON BEACH/UTILITIES
100 E. BOYNTON BEACH BLVD.
BOYNTON BEACH, FL 33-437
GENTLEMEN:
LETTER OF cREdIT NO. ....
SM4:t.84 ~3C
WE AMEND OUR ABOVE REFERE:NC~D LETTERQF .CREDIT ,ISSUED. IN 'YO~. FAVOR~,~.
FOR TH~ ACCOUNT OF V~LLA8 A~ ~AN~UM gAAES, INC. sA.~F~S? '" '
-SECOND PARAGRAPH: "~ STATEMENT ..... QUANTUM LAKES" THE LETTER ~ CREDIT. ~
-ONLY A SIQHT DRAFT AND THE DEtQINAL LETTER, OF
-IT IS A CONDITION OF
AUTOMATICALLY' EXTE~'D
OR ANY FUTURE EXPIR¥:, DATE,
EXPIRATION DATE, WE
NOT TO RENEW TH:IS
-DOC~ENTS. MA~ BE PR~EN~Q~AT,, E[TH~
-TH I S
· PREVAIL E E~ENT OF
INSTRUMENT.
AUTHOR]
FIRS~
EVO~
ALC
AMENDMENT TI] IRREVOCABLE STANDBY LETTER, OF CREDIT O1
3ENEFICIARY:
~ITY OF BOYNTON BEACH/UTILITIES
lO0 E. BOYNTON BEACH BLVD,
30YNTON B£ACH, FL 33437
~ENTLEMEN: "'
~E AMEND OUR ABQVE RIEFERENCED L:ET~ OF, (
'-OR THE ACCOUNT OF VILLAS AT QUANTUM
-THIS LETTER OF CREDIT ~L BE'.:EN~RCZA:~E
)UR I SD I CT I ON I N PALM' BEACH: ~,eOUNZY.. :
FHIS ~ETTER IS TO BE ATT~HED TO AND TO BEC'DME AN 'INT~R
NO.