2015, 04-03 EGR-2014-0004 Washington Trust Bank LtrAM
Washington Trust Bank �
323
r IRREVOCABLE STANDBY LETTER OF CREDIT
FOR
ROAD AND DRAINAGE CONSTRUCTION WARRANTY
Date: March 31, 2015
Beneficiaries: Principal:
For Road and Drainage Construction Warranty River Sequel, LLC
City of Spokane Valley 6710 E Camelback Rd Suite 100
11707 E. Sprague Suite 106 Scottsdale, AZ 85251-2031
Spokane Valley, WA 99206 (480)315-9595
Project # & Name: EGR-2014-0004 River House II at Trailhead
Letter of Credit Number: 24757
FC I2 - 2GR/ 4 -tee #
Expiration Date: March 31, 2016 )7)"j
At Our Counters Presently Located At: 11707 E. Sprague, Suite 106, Spokane Valley.
WA 99206
Amount: $41,324.00
Not exceeding USDollars $41,324.00 (Forty -One Thousand Three Hundred Twenty -Four
and 00/100 USDollars), itemized as indicated below:
• See Itemized List on Surety Estimate dated March 10, 2015
We hereby issue this irrevocable standby letter of credit for EGR-2014-0004 River
House II at Trailhead, available by your draft(s) drawn on us and accompanied by the
following documents:
For Road and Drainage Construction Warranty
Not exceeding USDollars $41,324.00 (Forty -One Thousand Three Hundred Twenty -Four and
No/100s) for road and drainage construction warranty, as surety for the full and faithful
performance by the PRINCIPAL of a guarantee against all defects in workmanship and materials
which may become apparent during a period of two (2) years after the City's establishment of the
improvements constructed under this project as public facilities.
This Page 1 of 3 forms an integral part of Letter of Credit No. 24757
In order to invoke this security, the City of Spokane Valley shall provide to the Issuing
Surety:
1. A signed statement from the City Engineer reading exactly as follows: "I, the undersigned
duly authorized representative of the City Engineer, hereby certify that the draft drawn under
this letter of credit represents the amount of money required to complete corrective actions
under the workmanship and materials warranty for the roadway improvements including
grading, gravel, paving, curbs, sidewalks, storm drainage, drainage swales, monuments,
street signs and/or other work as is incidental and related thereto in accordance with the
drawings and specifications as submitted to and accepted by the City Engineer, and
2. The original of this letter of credit.
SPECIAL CONDITIONS
1. If defects such as unsatisfactory workmanship or defective materials are revealed during the
warranty period, the City Engineer shall issue a written notice for correction of said defects
to the PRINCIPAL. If the PRINCIPAL fails to correct the defects noted within the time period
indicated in said notice, the City Engineer shall require the BANK to perform, or cause to
perform, any and all work necessary to remedy said defects in accordance with the approved
and accepted plans and specifications for this development. The BANK, as an alternative and
with the express written agreement of the City Engineer, may reimburse the City of Spokane
Valley for all expenses incurred to remedy the said defects.
2. If defects are not revealed during the said warranty period, the City Engineer will release the
warranty bond upon written request of the PRINCIPAL.
3. Any and all banking charges other than those of the issuing bank are for the account of the
beneficiary.
4. It is a condition of this letter of credit that it shall be automatically extended, without
amendment, for an additional period of one year from the present expiration date or each
future expiration date, unless we have notified you in writing not less than thirty (30) days
before such expiration date, that we elect not to renew this letter of credit. All written
notification shall be sent via registered mail.
Drafts drawn under this credit must bear the clause: "Drawn under Washington Trust Bank letter
of credit #24757 for completion of street and drainage improvements."
This credit is subject to the "Uniform Customs and Practice for Documentary Credits (1993)",
International Chamber of Commerce Publication No, 400.
We hereby engage with you that draft(s) drawn and/or documents presented and negotiated under
and in compliance with the terms of this irrevocable standby letter of credit will be duly honored
upon presentation to us.
This Page 2 of 3 forms an integral part of Letter of Credit No. 24757
The amount of each drawing must be endorsed on the reverse of this credit by the negotiating
bank.
A charge of USD25.00 will be deducted from the proceeds of any drawing presented with
discrepancies.
BANK:
WASHINWON TRUST BANK:
By: T-etnGlcLaughlin
Its: Vice President
This Page 3 of 3 forms an integral part of Letter of Credit No. 24757