Appendix 1.7 (c)
CITY OF ENCINITAS ENGINEERING DESIGN MANUAL -2009
Instructions for preparation of
An irrevocable standby letter of credit
The following instructions detail the use and completion of the Irrevocable Standby
Letter of Credit.
1.The Irrevocable Standby Letter of Credit (“Letter of Credit”)is one of the five
forms of financial deposit instruments accepted by the City to secure
proposed work following Engineering Department approval of the project
plans and engineering cost estimate.
2.The attached Letter of Credit format should beforwarded to the applicant’s
financial institutionto assist in the preparation of the Letter of Credit.
3.The financial institution prepares the Letter of Credit according to the format
given below and returns itto the City printed onthe financial institution’s
letterhead.
4.The name of the financial institution is entered in theblank space in item
number one.
5.Item number two, the aggregate amount, is 100% of the approved project
cost estimate.
6.IMPORTANT: AUTOMATIC RENEWAL IS REQUIRED.
7.The full legal nameof the financial institution and the signatures, names, and
titles of the authorized officers are entered in the appropriate spaces in item
number five.
8.The financial institution then has the signatures notarized in both of the
appropriate places and sends the Letter of Credit to the City’s Finance
Manager.
9.The Letter of Credit must be accepted and signed by the City’s Finance
Manager and the City Engineer.
10.The applicant will be notified of the City’s acceptance of theLetter of Credit
by telephone or at the time of submittal.
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IRREVOCABLE STANDBY LETTER OF CREDIT
To:Finance Manager
CITY OF ENCINITAS
505 South Vulcan Avenue
Encinitas, CA 92024
Re: [Financial Institution’s identification number or other
designation for this Credit]
1.The undersigned, _______________________________________(“Financial
Institution”), having a branch in the County of San Diego, hereby establishes
an IrrevocableStandby Letter of Credit (“Credit”)in favor of the City of
Encinitas.
2.The aggregate amount drawn against this Credit shall not exceed
_________________________ dollars ($________________).
3.This Credit shall be available byyour drafts drawn at sight and accompanied
by a duly signed certificate of the City Engineer of the City ofEncinitas in
form and of content as set forth in the attached Exhibit Aor Exhibit B(a
“Certificate”). The Financial Institution shall have no responsibility
whatsoever for verifying or investigating the truth of any matter stated in
Certificate.
4.AUTOMATIC RENEWAL REQUIRED.
In the event the draft or drawing under this Letter of Credit is for an amount
less than the amount available under this Letter of Credit, the original Letter
of Credit shall be endorsed by the Financial Institution in the amount of the
draft or drawing. After such endorsement for partial drawing, the Financial
Institution shall forthwith return the original of this Letter of Credit to the
City of Encinitas.
5.This Credit is subject to the Uniform Custom and Practice for Documentary
Credits (latest version, as updated), International Chamber of Commerce
latest publication. In the event this Letter of Credit shall not have been
drawn upon and shall expire during any interruption of business, the
Financial Institution hereby agrees specifically to permit a draft on or under
this Letter of Credit for a period of thirty (30) days after the resumption of
business as also defined therein.
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CITY OF ENCINITAS ENGINEERING DESIGN MANUAL -2009
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CITY OF ENCINITAS ENGINEERING DESIGN MANUAL - 2009
Exhibit ‘A’
CERTIFICATE OF THE CITY ENGINEER
TO ACCOMPANY DRAFT(S) DRAWN UNDER
_______________________________________________
[Financial Institution’s identification number or other designation for this Credit]
Re:_____________________________________________
[Property Location or Project Description]
I, _________________________ [name] do hereby certify that I am the City
Engineer of the City of Encinitas and do certify that:
(1)__________________________[name of subdivider/grantee] has not
satisfactorily complied with the terms and conditions of that certain covenant
(the “Covenant”) regarding real property public/private improvements
required as a condition of the ______________________ [e.g., variance,
use permit, other entitlement, or subdivision] dated
______________________, 20_____;and
(2)The Covenant remains outstanding and in full force and effect as of the date
hereof.
Dated:______________________By: ______________________________
City Engineer,
City of Encinitas
(Note: in cases of no recorded covenant, substitute term “Covenant” with “Permit”
and reference the appropriate municipal ordinance).
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Exhibit ‘B’
CERTIFICATE OF THE CITY ENGINEER
TO ACCOMPANY DRAFT(S) DRAWN UNDER
_______________________________________________
[Financial Institution’s identification number or other designation for this Credit]
Re:_____________________________________________
[Property Location or Project Description]
I, __________________________ [name] do hereby certify thatI am the City
Engineer of the City of Encinitas and do further certify that: the draft or drawing
against_____________________________________________________________
[name of financial institution] Letter of Credit No. ___________________________
in the principal amount of $_________________ dollars (U.S. $______________)
is being made solely due to the fact the Letter of Credit shall expire within 90 days
or less, and has been renewed or replaced by __________________ [name of
subdivider/grantee]. The original Letter of Credittogether with all other required
documentation, are herewith enclosed and said Letter of Credit is to be cancelled
upon receipt and payment drawn for the full amount available under said Letter of
Credit.
Dated:______________________By: ______________________________
City Engineer,
City of Encinitas
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