§ 22-131. Form of letters of credit.

(a)

The performance and payment letter of credit and the guaranty letter of credit shall each be in a form satisfactory to the village attorney. Every letter of credit shall be from a bank acceptable to the village, which bank shall have an office in the Chicago Metropolitan Area and shall be insured by the Federal Deposit Insurance Corporation. For every letter of credit in excess of one million dollars ($1,000,000.00), such bank shall have capital resources of at least fifty million dollars ($50,000,000.00). Each letter of credit shall, at a minimum, provide that (i) it shall expire no earlier than the later of one (1) year after the date of its issuance or forty-five (45) days after delivery to the village of written notice that such letter of credit will expire; (ii) it may be drawn on based on the village administrator's certification that the developer has failed to fulfill any of the obligations for which the letter of credit is security; (iii) it shall not require the consent of the developer prior to any draw on it by the village; (iv) it shall not be cancelled without the prior written consent of the village; and (v) if at any time it will expire within forty-five (45) or any lesser number of days, and if it has not been renewed, and if any obligation of the developer for which it is security remains incomplete or unsatisfactory, then the village may, without notice and without being required to take any further action of any nature whatsoever, call and draw down the letter of credit and thereafter either hold all proceeds as security for the satisfactory completion of all such obligations or employ the proceeds to complete all such obligations and reimburse the village for any and all costs and expenses, including legal fees and administrative costs, incurred by the village, as the village shall determine.

(b)

The performance and payment letter of credit may provide that the aggregate amount of the letter of credit may be reduced, but only upon joint written direction by the developer and the village, to reflect a reduction in the total amount of the deposit required pursuant to section 22-128 of this chapter as a result of payments made by the developer in full or partial satisfaction of the developer's obligations to pay village fees, costs and expenses, to complete the required public improvements, to reflect a reduction in the total amount of the deposit required pursuant to section 22-128 of this chapter of this section from one hundred twenty-five (125) percent of the approved cost estimate to one hundred ten (110) percent of the amount of an executed contract, or to reimburse the developer for payment of public improvement work satisfactorily completed. No such reduction to reimburse the developer for payment of public improvement work satisfactorily completed shall be allowed except after presentation by the developer of proper contractors' sworn statements, partial or final waivers of lien, as may be appropriate, and all such additional documentation as the village may reasonably request to demonstrate satisfactory completion of the public improvement in question and full payment of all contractors, subcontractors and material suppliers.

(c)

The guaranty letter of credit shall not be reduced by reason of any cost incurred by the developer to satisfy its obligations to correct, repair or replace defects or deficiencies in the public improvements.

(Ord. No. 96-0-14, § 2(22-705), 3-14-96)