O94-04ORDINANCE 094-~
AN ORDINANCE BY THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, AMENDING
ARTICLE XVIII. SECTION A.1 AND A.2., POLICY
FOR ACCEPTING LETTERS OF CREDIT, BY CLARIFYING
THE EXPIRATION DATE AND SETTING FORTH REVISED
RATING QUALIFICATIONS; PROVIDING FOR
CONFLICTS, SEVERABILITY, CODIFICATION, AND AN
EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Boynton Beach,
Florida adopted previous Ordinance No. 91-83 on December 17,
1991 establishing a Policy for Accepting Letters of Credit; and
WHEREAS, the City Commission of the City of Boynton Beach,
Florida recognizes that certain standards and pre-requisites for
accepting Letters of Credit will serve to protect the City's
best interests and avoid adverse liability of the City; and
WHEREAS, the City Commission of the City of Boynton Beach,
Florida wishes to revise the aforementioned policy;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. That Article XVlll. Policy for Accepting
Letters of Credit is hereby amended by adding the words and
figures in underlined type and by deleting the words and figures
in struck-through type, as follows:
A. This policy delineates specific criteria
and prerequisites for accepting letters of
credit by the city in conjunction with
developer agreements, contracts, development
related improvements, and any other
contractual obligations.
1. The face of the letter of credit must
indicate the following:
a. The letter of credit ...
b. A statcmcnt tkat tko icttcr cf
thc city ccm~.ission. The expiration
date of the letter of credit shall be
at least three (3) months after the
completion date for construction of
required improvements pursuant to the
initial contract or any subsequent
extension thereof.
2. At the time of issuance of the letter of
credit, and at all times subsequent thereto and
so long as the letter of credit is enforceable,
the issuing financial institution must have a A
or B minimum "~ .... group" rating ~v~ ~fty (50)
in the latest ~Weiss Research Quarterly
Listing or a minimum rating of one hundred
twenty-five (125) in the latest IDC Bank
Financial Quarterly Listing. The City Finance
Department shall be responsible for periodically
verifying this information.
Section 2. That all ordinances or parts of ordinances
in conflict herewith be and the same are hereby repealed.
Section 3. Should any section or provision of this
ordinance or portion hereof, any paragraph, sentence, or word be
declared by a court of competent jurisdiction to be invalid,
such decision shall not affect the remainder of this ordinance.
Section 4.
ordinance.
Authority is hereby granted to codify said
Section 5.
immediately upon passage.
This ordinance shall become effective
FIRST READING this
SECOND, FINAL READING AND
March, 1994.
day of February, 1994.
PASSAGE this /
day of
~ITY O~ ~N~N BEACH, FLORIDA
Commissi ~r
ATTEST:
Ci~ Clerk
(Corporate Seal)
Rev.Letter/Credit Policy
Rev.2/9/94