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CCR2005061. . . COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #061-2005 APPROVAL OF IRREVOCABLE LETTER OF CREDIT FOR ONYX WASTE SERVICES MIDWEST, INC. WHEREAS, The Finance Committee has reviewed the attached Irrevocable Letter of Credit for Onyx Waste Services Midwest, Inc. and has recommended approval. NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the attached Irrevocable Letter of Credit for Onyx Waste Services Midwest, Inc. contingent upon the Contract for services referred to in Reso. #062-2005 being amended as stated in said resolution. DATED THIS 22nd OF March ,2005. SPONSORED BY: FINANCE COMMITTEE Ald. Nancy C. Salentine Ald. Eric Schroeder Ald. Eileen Madden This is to certify that this is a true and accurate copy of Resolution #061-2005 which was adopted by the Common Council of the City of Muskego. 3/2005jmb Clérk-Treasurer ( . . . DRAFT IRREVOCABLE STANDBY LETTER OF CREDIT NO. XXXXXXX DATE: March ,2005 AMOUNT: $ APPLICANT: Onyx Waste Services Midwest Inc. W144 S6350 College Court Muskego WI, 53150 BENEFICIARY: City of Muskego W182 S8200 Racine Ave 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 Ilc amount) m@en 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 . .