LETTER OF CREDIT INSTRUCTIONS

1.

The Letter of Credit format must follow the template found on the City of Millersville website at: https://www.cityofmillersville.com/ - Departments - Planning and Zoning - Letter of Credit. Use either the LOC of Site Plan or Subdivision, based on which is needed.

2.

The Planning Commission Approval date and the exact Phase/Section (for subdivisions) will need to be incorporated on the first page.

3.

On the first page, this exact verbiage must be included:

This Letter of Credit is valid for an initial period of one (1) year and shall be automatically renewed for successive periods of one (1) year without any effort on the part of the City. We reserve the right to revoke this Letter of Credit, but only after providing the Beneficiary with 90 days' notice by certified mail, return receipt requested.

4.

The second page of the Letter of Credit is where the City often finds discrepancies. The intention of the verbiage is to either 1) have the Letter of Credit taken to a local back, or 2) in the event of a larger corporation, provide the option for the City to take the originals to a local bank to call the LOC, and have the corporate office accept it via fax or email from the local branch. Therefore, the Letter of Credit will either need to state:

A.

We hereby engage with you that all drafts drawn under and in compliance with the Terms of this Credit will be duly honored if drawn and presented for payment on or before the expiration date of this Credit at [FILL IN THE NAME AND ADDRESS OF THE LOCAL BRANCH WITHIN 75 MILES OF CITY HALL, MILLERSVILLE, TN. The bank shall wire the funds to the City's account within two (2) business days.

OR

B.

(To be utilized when the corporate office is not local & alternate method is necessary). The local branch bank shall simultaneously submit the Certificate of Default and Draft by facsimile or email to EMAIL OR FAX NUMBER OF THE RESPONSIBLE PARTY AT THE CORPORATE OFFICE. The City may elect to submit the Certificate of Default and Draft directly to the Bank at the above stated facsimile number or email address. The bank shall wire the funds to the City's account within two (2) business days.

(MUST BE ON ORIGINAL BANK LETTER HEAD)
IRREVOCABLE STANDBY SUBDIVISION LETTER OF CREDIT NO. #

DATE:

IN FAVOR OF (BENEFICIARY):

City of Millersville
Attn: Planning Department
1246 Louisville Highway
Millersville, Tennessee 37072

FOR ACCOUNT OF (APPLICANT):

;adv=3p:AMOUNT:

NAME OF DEVELOPMENT:

We hereby establish our Irrevocable Standby Letter of Credit (hereinafter "Credit") in your favor available by your draft(s) drawn at SIGHT on (Name of Bank) and accompanied by the documents specified below:

1.

Certificate of default, signed by the Chairman of the Millersville Planning Commission or the Mayor of the City of Millersville, certifying that: The applicant has not completed, in accordance with the Millersville Subdivision Regulations and the attached Development Agreement, the streets, water lines, sewer lines, and/or other improvements required by said subdivision regulations for (name of subdivision including phase and/or section) approved by Millersville Planning Commission on (date approved), which approval was conditioned upon the completion of the said improvements. The certificate shall also state the approximate dollar amount of damage to the City which amount shall be identical to the face amount of the accompanying draft.

2.

Original Letter of Credit and Amendments if any.

This Letter of Credit is valid for an initial period of one (1) year and shall be automatically renewed for successive periods of one (1) year without any effort on the part of the City. We reserve the right to revoke this Letter of Credit, but only after providing the Beneficiary with 90 days' notice by certified mail, return receipt requested.

PAGE ONE OF TWO (CONT. ON PAGE TWO)
PAGE TWO OF TWO OF IRREVOCABLE STANDBY LETTER OF CREDIT NO.#_______

All drafts must be marked: "Drawn under (Name and Address of Bank). Credit No.#_______."

Except so far as otherwise expressly stated this Credit is subject to the International Standby Practices/ISP98, International Chamber of Commerce Publication No. 590 or ICC Publication No. 600.

We hereby engage with you that all drafts drawn under and in compliance with the terms of this Credit will be duly honored if drawn and presented for payment on or before the expiration date of this Credit at (name and address of local branch bank - must be within 75 miles of City Hall, Millersville, TN).

[OR: Include the following language if the alternative method of payment described therein is chosen by the Bank].

The local branch bank shall simultaneously submit the Certificate of Default and Draft by facsimile or e-mail to (Bank's Letter of Credit Department facsimile number or e-mail address). The City may elect to submit the Certificate of Default and Draft directly to the Bank at the above stated facsimile number or e-mail address. The bank shall wire the funds to the City's account within two (2) business days.

___________
Signed by Officer of Bank

___________
Print Name and Title

(MUST BE ON ORIGINAL BANK LETTER HEAD)
IRREVOCABLE STANDBY SITE PLAN LETTER OF CREDIT NO. #

DATE:

;adv=2;IN FAVOR OF (BENEFICIARY):

City of Millersville
Attn: Planning Department
1246 Louisville Highway
Millersville, Tennessee 37072

FOR ACCOUNT OF (APPLICANT):

AMOUNT:

NAME OF DEVELOPMENT:

We hereby establish our Irrevocable Standby Letter of Credit (hereinafter "Credit") in your favor available by your draft(s) drawn at SIGHT on (Name of Bank) and accompanied by the documents specified below:

1.

Certificate of default, signed by the Chairman of the Millersville Planning Commission or the Mayor of the City of Millersville, certifying that: The applicant has not completed, in accordance with the Millersville Zoning Ordinance, the building and site improvements required by said Zoning Ordinance and the approved Site Plan for (name of business or project) approved by Millersville Planning Commission on (date approved), which approval was conditioned upon the completion of the said improvements. The certificate shall also state the approximate dollar amount of damage to the City which amount shall be identical to the face amount of the accompanying draft

2.

Original Letter of Credit and Amendments if any.

This Letter of Credit is valid for an initial period of one (1) year and shall be automatically renewed for successive periods of one (1) year without any effort on the part of the City. We reserve the right to revoke this Letter of Credit, but only after providing the Beneficiary with 90 days' notice by certified mail, return receipt requested.

PAGE ONE OF TWO (CONT. ON PAGE TWO)
PAGE TWO OF TWO OF IRREVOCABLE STANDBY LETTER OF CREDIT NO.#_______

All drafts must be marked: "Drawn under (Name and Address of Bank). Credit No.#_______."

Except so far as otherwise expressly stated this Credit is subject to the International Standby Practices/ISP98, International Chamber of Commerce Publication No. 590 or ICC Publication No. 600.

We hereby engage with you that all drafts drawn under and in compliance with the terms of this Credit will be duly honored if drawn and presented for payment on or before the expiration date of this Credit at (name and address of local branch bank - must be within 75 miles of City Hall, Millersville, TN).

[OR: Include the following language if the alternative method of payment described therein is chosen by the Bank].

The local branch bank shall simultaneously submit the Certificate of Default and Draft by facsimile or e-mail to (Bank's Letter of Credit Department facsimile number or e-mail address). The City may elect to submit the Certificate of Default and Draft directly to the Bank at the above stated facsimile number or e-mail address. The bank shall wire the funds to the City's account within two (2) business days.

___________
Signed by Officer of Bank

___________
Print Name and Title

(Ord. No. 20-744, 6-1-2020)