Appendix B. SAMPLE LETTER OF CREDIT

City of Port St. Lucie
a Political Subdivision
of the State of Florida
121 S.W. Port St. Lucie Blvd.
Port St. Lucie, Florida 34984

Dear Sirs:

We open an Irrevocable Letter of Credit in your favor for the account of ___________, to be used in connection with the project known as ___________ in the City of Port St. Lucie, Florida, and in connection with the obligations of ___________, under the Contract for Construction of Required Improvements by and between ___________ and you dated ________, 20_____ (herein called the "Completion Contract").

In the event ___________ shall fail or neglect to fulfill its obligations under the Completion Contract, you may draw up this Letter of Credit such amount not to exceed _______ as is required to complete the required improvements more particularly described in the Completion Agreement.

Acting through your City Engineer, you will notify us when:

1.

The improvements required by the Completion Contract have been timely and satisfactorily completed and this credit may be released; or

2.

___________ has failed to perform or is in default under the terms of the Completion Contract.

All drafts drawn under this Letter of Credit must be marked "Drawn Under the ________ Letter of Credit No. _______ dated ________, 20_____." Drafts submitted must be accompanied by a certification from your City Engineer that ___________ is in default under the terms of the Completion Contract and shall set forth the items of the Completion Contract and shall set forth the items required by the Completion Contract which are not completed as of the date of such certification, as well as the cost to complete such items. The draft or drafts will be in the amount certified as required to complete in accordance with the Completion Contract, but in no event will all drafts exceed _______. In addition, all drafts will be accompanied by a certified copy of a resolution by the City Council of the City of Port St. Lucie, Florida, resolving that the proceeds drawn under this Letter of Credit are to be used solely for the completion of uncompleted items required by the Completion Contract.

Our obligation to you shall terminate upon satisfactory completion of all obligations of ___________, under the terms of the Completion Contract, or on ________, 20_____, whichever shall first occur, whereupon this Letter of Credit will be delivered to us with proper notation that it is canceled.

We agree with the drawers, endorsers, and bona fide holders of drafts that drafts drawn under and in compliance with the terms of this credit shall be duly honored if presented on or before ________, 20_____.

Very truly yours,

/s/

BY:___________

(Ord. 94-7, passed 3-14-94)