O98-08ORDINANCE NO. O98-~g~
AN ORDINANCE OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA
AMENDING CHAPTER 7, "SURETY" OF THE LAND
DEVELOPMENT REGULATIONS, BY AMENDING
ARTICLE 1, SECTION 3.A.l.b PROVIDING THAT
LETTERS OF CREDIT MAY HAVE EXPIRATION
DATES, THAT THE LETTER OF CREDIT SHALL BE
AUTOMATICALLY RENEWED UNLESS THE CITY IS
NOTICED BY ISSUER, THAT NOTICE TO CITY THAT
THE LETTER OF CREDIT WILL EXPIRE PRIOR TO
PERFORMANCE OF THE OBLIGATIONS
GUARANTEED THEREIN SHALL BE DEEMED A
DEFAULT; PROVIDING FOR CONFLICTS,
SEVERABILITY, CODIFICATION AND AN EFFECTIVE
DATE.
WHEREAS, it has come to the attention of the City Commission of the City
of Boynton Beach that clarification is required regarding the required elements of
Letters of Credit as set forth in the Land Development Regulations; and
WHEREAS, the general practice in the banking industry is to affix expiration
dates to letters of credit, rather than have the term of the letter of credit dictated by
a local governing body; and
WHEREAS, the City requires notice that a letter of credit is about to expire
so that the letter of credit can be extended or drawn upon to pay for the required
improvements; and
WHEREAS, upon recommendation of staff, the City Commission of the City
of Boynton Beach has deemed.it to be in the best interests of the citizens and
residents of the City of Boynton Beach to amend Section 3.A.1 .b of Chapter 7 of the
ca\ord\letters of credit criteria
Rev. 1/6/98 I
T
Land Development RegulatiOns to provide for enforceability of letters of credit
having expiration dates.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. That Chapter 7. Surety. Article I. In General, Section 3.A.l.b
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:
The letter of credit is irrevocable and shall remain enforceable until
released by a resolution adopted by the City Commission, or until the
letter of credit expires. If the letter of credit provides for an expiration
date, said letter of credit shall be automatically renewed for
successive pedods, of one (1) year each unless the issuer of the letter
of credit provides the City wdtten notice of its intent to cancel the letter
of credit. Said notice must be provided at least ninety (90) days pdor
to the expiration of the date of the original term or any renewed one
(1) year term. Notice to the City that the letter of credit will expire prior
to the performance of the obliqations guaranteed by the letter of credit
shall be deemed a default and shall entitle City to collect on the letter
of credit.
Section 2. That each and every other section of Chapter 7 of the.Land
Development Regulations not herein specifically amended shall remain in full force and
effect as previously enacted.
Section 3. All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
Section 4. Should any section or provision of this Ordinance of any portion
thereof be declared-by a court of competent jurisdiction to be invalid, such decision
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shall not affect the remainder of this Ordinance.
Section 5. Authority is hereby given to codify this Ordinance.
Section 6. This Ordinance shall become effective immediately upon passage.
FIRST READING this ,¢¢,¢ day of ~/.z_¢¢,4'¢, 199,¢'.
SECOND, FINAL READING AND PASSAGE this -,.¢ day of ~,,~y ,
1998.
ATTEST:
Vic, e~, ayor
Commissioner
ommissioner~
City'Clerk
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