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ROAD DEDICATION\\Letter of Credit – Release to Collette Construction formerly Kelaco – Caitlin Dr in Pointe West-6-15-2020
RESOLUTION AUTHORIZING RELEASE OF LETTER OF CREDIT IN
CONNECTION WITH DEDICATION OF CAITLIN DRIVE IN THE POINTE
WEST SUBDIVISION
RESOLUTION NO.: _________________________________________________, 2020
INTRODUCED BY: _________________________________________________
WHO MOVED FOR ITS ADOPTION
SECONDED BY: ___________________________________________________
WHEREAS, by Resolution No.: 377,2010 the Queensbury Town Board authorized the
dedication of Caitlin Drive in the Pointe West Subdivision to the Town of Queensbury and at the time
of dedication, the developer, KELACO, LLC (now known as Collette Construction, Inc.) provided the
Town with a $25,000 Letter of Credit to ensure placement of the top coat on such road, and
WHEREAS, by Memorandum dated June 4, 2020, the Town’s Highway Superintendent has
advised the Town Board that the top coat of black top on Caitlin Drive has been completed to his
satisfaction and the Highway Department’s specifications and has therefore recommended that the
Town Board authorize the release of the Letter of Credit,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby authorizes the release of the $25,000
Letter of Credit to Collette Construction, Inc., (formerly known as KELACO, LLC) in connection
with the dedication of Caitlin Drive in the Pointe West Subdivision, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor, Town
Highway Superintendent, Town Counsel and/or Town Budget Officer to take such other and further
action necessary to effectuate the terms of this Resolution.
th
Duly adopted this 15 day of June, 2020, by the following vote:
AYES :
NOES :
ABSENT:
r(Y;: w o/o71 e/isl iiiv , n avid Duell
highway L_
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Mark Ben n /.t
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Supei it u2n 1C'2':
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To: Queensbury Town Board
From: David Duell
Date: June 4, 2020
Re: Kelaco, LLC
I have inspected Caitlin Drive in the Pointe West Subdivision, the top coat of black
top meets the specification set for by the Town of Queensbury Highway Dept. I
hereby recommended the return of the letter of credit in the amount of
$25,000.00 to the Kelaco, LLC.
Respectfully
David Duell
Highway Superintendent
IF1 1 ' 51 i: I ' I. . , ' ' I ' I .1. . I 11,.
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'00()00000000669096414700510201601'
IRREVOCABLE LETTER OF CREDIT
Bpr►ower: Celiette Construction,Inc. Lender; Glans Frills National Sank and Trust Company
38 Collette Lane 250 Glen Street
Hudson Falls, NY 12639 Glens Falls, NY 12801
(518)793-4121
Beneficiary: Town of Guennsbury
74-2 Bay Road
Queenebury, NY 12801
NO.: 6690964
EXPIRATION DATE. This letter of credit shall expire upon the earlier of the close of business on A n i,. l (2D J and ail
drafts and accompanying statements or documents must be presented to Lender on or before that'time, or the day mat Lander henois a draw
under which the to amount of this Letter of Credit has been drawn (the"Expiration Date").
AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Latter of Credit in favor of
Beneficiary for a sum of Twenty-five Thousand &00/100 Dollars 025,000,00) (the 'Letter of Credit"), These funds shall be made available to
Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or other such address
that Lender may provide Beneficiary in writing)during regular business hours end accompanied by the signed written statements or documents
indicated below.
WARNING TO BENEFICIARY: PLEASE EXAMINE THiS Lei IER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS
REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT
CAN BE AMENDED. OTHERWISE,YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY
WITH ITS TERMS AS WRITTEN.
DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions:
Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated
to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn.
Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other
document which complies strictly with this Latter of Credit, and which on its face appears otherwise in order but which is signed, Issued, or
presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as
Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit. Lender makes ne
representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary,or any other person, for any amount
paid or disbursed for any reason whatsoever,Including,without limitation,any nonapplication or misapplication by Beneficiary of the proceeds of
such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the
other,unless and until Beneficiary meets with dishonor. Beneficiary premises to return to Lender any funds received by Beneficiary in excess of
the Letter of Credit's maximum drawing amount.
USE RESTRICTIONS, All drafts must be marked "DRAWN UNDER Glens Fails National Rank end Trust Company IRREVOCABLE LETTER OF
CREDIT NO. 6690964 DATED 05-10-2016,'and the amount of each draft shall be marked on the draft. Only Beneficiary may complete a draft
and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Latter of
Credit must accompany any draft drawn hereunder.
Partial draws are permitted under this Letter of Credit. Lender's honor of a partial draw shall correspondingly reduce the amount of credit
available under this Letter of Credit. Following a partial draw,Lender shall return this original Letter of Credit to Beneficiary with the partial
draw noted hareon; in the alternative, and in its sole discretion, Lender may issue a substitute Letter of Credit to Beneficiary in the amount
shown above,less any partial drawls).
PERMITTED TRANSFEREES. The right to draw under this Letter of Credit shall be nontransferable,except for:
A, A transfer (in Its entirety, but not in part) by direct operation of law to the administrator, executor, bankruptcy trustee, receiver,
liquidator,successor,or other representative at law of the original Beneficiary; and
B. The first immediate transfer (in Its entirety, but not in part) by such legal representative to a third party after express approval of a
governmental body(judicial,administrative,or executive).
TRANSFEREES REQUIRED DOCUMENTS. When the presenter Is a permitted transferee (f) by operation of law or lii) a third party receiving
transfer from a legal representative, as described above, the documents required for a draw shall include a certified copy of the one or more
documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary,
COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of
this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i)that unless and until the present woding of this Letter
of Credit Is amended with Lander's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary,
and Iii)that Lender Is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording.
NON•SEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or goeemmental body
having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and
Beneficiary shall be restored to the position each would have occupied with all rights available es though this Letter of Credit had never
occurred. This non-severabilty provision shall override all other provisions in this Letter of Credit, no matter where such provision appears
within this Letter of Credit.
GOVERNING LAW, This Agreement will be governed by federal law applicable to Lender and, to the extent riot preempted by federal law, the
laws of the State of New York without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the
2007 Revision of the Uniform Customs end Practice for Documentary Credits of the International Chamber of Commerce, ICC Publication No.
606, This Agreement hag been accepted by Lender in the State of New York.
EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under end in compliance with the terms of this Letter of Credit will be
duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above.
AUTO RENEW. This Irrevocable Letter of Credit;hail be automatically renewed without amendment for one 01 year from the present or any
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*0000000000066$0964147005102016024
IRREVOCABLE LETTER OF CREDIT
Loan No: 6690964 (Continued) Page 2
future expiration data hereof, unless thirty (30) days prior to any such date we shall notify you In wdting that we elect not to consider this latter
of cmclit renewed for any aooh additional period.
Dated;May 10,2016
LENDER:
CLENS FALLS NATO 7 IAN AND TRUST COMPANY
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ATiza !El '
ENDORSEMENT OF DRAFTS DRAWN:
Amount Amount
Date Negotiated ay In Words In Figures
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