HomeMy WebLinkAboutPWA LETTER OF CREDIT-PERFLETTER OF CREDIT
PERFORMANCE FOR PUBLIC WORKS AGREEMENTS
(Funds must be available at a Maryland Bank or Branch Bank)
__________________________, 20____
Board of County Commissioners of
Washington County, Maryland
c/o Administrative Assistant
80 West Baltimore Street
Hagerstown MD 21740
Dear Commissioners:
We hereby establish our irrevocable standby letter of credit No.____________________ in favor of the Board of County Commissioners of Washington County, Maryland (hereinafter referred
to as “the Commissioners”) at the request of and for the account of ______________________________________ at ___________________________________ effective ___________________ 20____
up to an aggregate amount in U.S. dollars ________________________. Funds under this letter of credit are available at our office at _____________________________________________,
(must be a Maryland address) against your draft drawn at sight on us accompanied by a written certification of the Deputy Director ECM, Construction, the authorized agent of Board of
County Commissioners of Washington County, Maryland, that the draft is a result of noncompliance with or failure to fulfill the obligations set forth in the Public Works Agreement by
and between ________________________________________________ and the Board of County Commissioners of Washington County, Maryland, Number:_________________ (“Public Works Agreement”),
relating to the following development:
Subdivision Name/Section or Phase:_______________________________________________________
Recorded Plat No.:_____________________________________________________________________
Owner/Developer Name:________________________________________________________________
Your signed and dated statement as follows: “The undersigned Deputy Director ECM, Construction, an authorized agent of the Board of County Commissioners of Washington County, Maryland,
hereby certifies that the amount drawn represents amounts due and owing to the Board of County Commissioners of Washington County, Maryland, because _________________________________
has defaulted or failed to fulfill the obligations under the terms and conditions of a Public Works Agreement between it and the Board of County Commissioners of Washington County,
Maryland.
All banking charges are for the account of ____________________________________________.
Our obligation under this letter of credit shall not be affected by any circumstance, claim, or defense, real or personal, as to the enforceability of the Public Works Agreement referenced
herein; it being understood that our obligation shall be that of a primary obligor and not that of a surety guarantor, or accommodation maker.
Drafts and documents must be presented on or before _________________. Drafts drawn under this letter of credit must be marked on the “Drawn Under Irrevocable Standby Letter of Credit
No. __________________________.” Partial drawings are permitted.
We hereby agree with the drawers, endorsers, and bona fide holders of drafts drawn under and in compliance with the terms of this letter of credit that such drafts shall be duly honored
on presentation and delivery of documents as specified.
This letter of credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, or amplified by reference to any document, instrument,
or agreement referred to herein or in which this Letter of Credit is referred to or to which this Letter of Credit relates and any such reference shall not be deemed to incorporate
herein by reference any document, instrument or agreement.
This credit is issued subject to the Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No. 600 (UCP). To the extent applicable provisions of the UCP
are not in conflict, in which case applicable provisions of the UCP shall prevail, this credit shall be governed by and construed in accordance with the laws of the United States of
America and the State of Maryland including the Uniform Commercial Code as in effect in the State of Maryland.
ISSUING BANK: ____________________________________________
Signature
_____________________________________________
Printed Name
Name of Issuing Bank:____________________________________________
Address:_____________________________________________
____________________________________________
Contact Person:____________________________________________
Phone:____________________________________________
Approved as to form and legal sufficiency: Approved & Accepted by:
___________________________ __________________________________
County Attorney Real Property Administrator
Washington County Division of Engineering
And Construction Management
80 West Baltimore Street
Hagerstown MD 21740
Phone: 240-313-2410