CCR2005061LOC-Onyx-attach
DRAFT
IRREVOCABLE STANDBY LETTER OF CREDIT
NO. XXXXXXX
DATE: March_____, 2005 AMOUNT: $_______________
________________________________________________________________
APPLICANT: BENEFICIARY:
Onyx Waste Services Midwest Inc. City of Muskego
W144 S6350 College Court W182 S8200 Racine Ave
Muskego WI, 53150 P.O. Box 749
Muskego, WI 53150-0749
________________________________________________________________
EXPIRATION DATE: March 31, 2006 AT OUR COUNTERS.
________________________________________________________________
Dear Sirs:
We hereby issue this Irrevocable Standby Letter of Credit in your favor (the
Beneficiary’s) which is available by beneficiary’s draft(s) at sight drawn on
_________________. Each draft accompanying documents must state “Drawn
under Standby Letter of Credit No. XXXXXXX.”
This Standby Letter of Credit is to provide assurance to the City of Muskego for
the performance of Onyx Waste Services Midwest, Inc. obligations under that
certain Contract dated December 31, 2003, by and between the City of Muskego
and Onyx Waste Services Midwest, Inc., Inc.
Drafts are to be accompanied by:
Statement, purportedly signed by the Mayor of the City of Muskego stating that:
“Onyx Waste Services Midwest, Inc. has failed to fulfill the provisions of the
contract in accordance with said contract or otherwise comply with any of the
obligations of the contract. This statement shall set forth the estimated amount
necessary for the City of Muskego to fulfill or otherwise comply with the
obligations of the contract.”
SPECIAL CONDITIONS:
PAGE TWO, AN INTERGRAL PART OF STANDBY LETTER OF CREDIT NO.
XXXXXXX DATE December__, 2004.
It is a condition of this letter of credit that it is deemed to be
automatically extended without amendment for period(s) of one year each
from the current expiry date hereof, or any future expiration date, unless
at least ninety (90) days prior to any expiration date, we notify you by
registered mail at the above listed address that we elect not to consider
this letter of credit renewed for any such additional period.
Any such notice shall be effective when sent by us and upon such notice to
you, you may draw at any time prior to the then current expiration date,
up to the full amount then available hereunder, against your draft(s)
drawn on us at sight and the original of this letter of credit and all
amendments thereto, accompanied by your purportedly signed statement
on your letterhead stating that you are in receipt of Bank of America's notice of
nonrenewal under letter of credit no._________
and the applicant's obligation to you remains.
Notwithstanding anything contained in this letter of credit our liability under this
credit is limited to (the available l/c amount) (written amount) and will cease
upon close of banking business hours on the expiration date stated above. any
claims received after such expiration date will not be entertained by us.
It is hereby agreed by all parties hereto that the reference to “Contract” is for
identification purposes only, and such reference shall not be construed in any
manner to require __________ Bank to inquire into its terms and obligations.
We hereby agree with you that all drafts drawn under and in compliance with the
terms of this Standby Letter of Credit duly honored by us if documents are
presented to Bank of America, N.A. 1 Fleet Way, Scranton, Pa 18507, Attn:
Global Trade Opers.-Standby Unit, on or before the expiration date. This original
Standby Letter of Credit and any amendments which may be issued from time to
time, must be submitted to and together with hereunder for our endorsement of
any payment effected by us and/or for cancellation.
Except as otherwise expressly stated, the credit is subject to the “Uniform
Customs and Practice for Documentary Credits ( 1993 Revision) International
Chamber of Commerce Publication No. 500 or the successor that are in effect at
the time of any draw.
Very truly yours,
___________ Bank
DRAFT
_____________________
Authorized Signature