SAMPLE IRREVOCABLE LETTER OF CREDIT
(On Bank/Issuer Letterhead)
BENEFICIARY:
Village of Romeoville
APPLICANT: __________________
1050 W. Romeo Road
__________________
Romeoville, Illinois 60446
__________________
DATE:
___________
NUMBER:
__________________
EXPIRATION:
[Not less than two years
from date first above named]
PRINCIPAL AMOUNT: _________
Ladies and Gentlemen:
We hereby issue this Irrevocable Letter of Credit (the “Credit”) in your favor up to the
aggregate amount of U.S. [insert dollar amount equal to one hundred and twenty-five percent
(125%) of the costs of completing all public improvements required of the developer or
subdivider together with the costs of performing all other obligations for which financial security
is required under this Chapter, or under the terms of any relevant annexation agreement or
performance guarantee agreement].
This Credit is issued to secure the completion and installation of [list all public
improvements required of the developer or subdivider, either specifically, by reference to any
relevant annexation agreement or performance guarantee agreement, or by citation to pertinent
sections of this Chapter] and the performance of [list all other obligations of the developer or
subdivider for which financial security is required under this Chapter, or under the terms of any
relevant annexation agreement or performance guarantee agreement], all on or before [insert a
date which is at least ninety (90) days before the expiration date of the Credit].
We engage with you that we will fully honor any draft drawn at sight under this Credit
provided that:
1.
Such draft is presented at our counters on or before [the above-stated expiration
date], or before such other extended expiration date as may result from any
automatic renewal of this Credit as hereinafter set forth;
2.
Such draft is accompanied by this original Credit;
3.
Such draft is marked “Drawn under [Issuer’s] Irrevocable Letter of Credit No.
___
dated [insert date first above named];
4.
Such draft is accompanied by either (a) a statement signed by the Village