§ 62-121. Generally.

After conditional approval has been granted, but before the final plat is submitted for final approval, the subdivider shall either:

(1)

Install all improvements specified in this section;

(2)

Deliver to the village board, in duplicate, a signed contract covering all such improvements and an acceptable surety bond guaranteeing the completion of such improvements contracted for within three years from the date of such contract;

(3)

Undertake an escrow agreement placing 115 percent of the estimated cost of labor and materials for the improvement, as approved by the village engineer or designated engineer, in a bank account whereby the improvement is guaranteed to be installed within a given time limit or else the village may use such funds in escrow to contract for the installation of such improvements; or

(4)

Undertake a lieu of a completion bond to be executed by the developer to establish the relationship and obligations between the village and an irrevocable letter of credit in a form to be approved by the village attorney, whereby the undertaking in lieu of a completion bond and irrevocable letter of credit will cover 115 percent of the estimated cost of the labor and materials for the improvement, as approved by the village engineer or designated engineer.

Vacation of a plat or of a portion of a plat will dissolve the corresponding bond obligation, escrow, undertaking in lieu of completion bond providing for an irrevocable letter of credit, or portion thereof, or any surety approved by the village board.

SUBDIVIDER'S UNDERTAKING IN LIEU OF COMPLETION BOND
WITH THE VILLAGE OF CHERRY VALLEY, ILLINOIS

KNOW ALL MEN BY THESE PRESENTS, THAT ____________ , whose address (Subdivider or Corporate name) is ____________ is hereinafter referred to as "SUBDIVIDER" is hereby bounded to the Village of Cherry Valley, hereinafter referred to as "VILLAGE" in the penal sum of ____________ ($ ____________ ) lawful money of the United States of America, for payment of which it does here bind itself and its successors and assigns firmly by these presents.

WHEREAS, Subdivider, has agreed to construct all public improvements located in Plat of   (Number)   of   (Title)   in accordance with Village Subdivision Ordinance and specifications as approved by the Village of Cherry Valley, and as set for on the cost Estimate prepared by   (Project Engineer)   dated ____________ / ____________ / ____________ , 2 ____________ , Job No. ____________ , and shall save the Village harmless from any loss, cost or damage by reason of its failure to complete said work, then this obligation shall be null and void; otherwise, it shall remain in full force and effect, and it shall be secured, as surety, by an Irrevocable Commercial Letter of Credit in the amount of ____________ ($ ____________ ), No. ____________ , dated: ____________ / ____________ / ____________ , 2 ____________ , from   (Name of Financial Institution)   , a copy of which is also attached hereto, and the conditions of which are hereby incorporated herein and made a part hereof.

The principal of this Bond,   (Subdivider or Corporate Name)   agrees as follows:

1.

An Irrevocable Letter of Credit in the amount of 115 percent of the cost estimate as set forth in the attached Exhibit "A", prepared by   (Project Engineer)   , as approved by the Village Engineer or Designated Engineer, shall be furnished by the Subdivider to complete all the work as hereinabove guaranteed. Subdivider guarantees the workmanship and materials of said above-listed improvements to be installed upon the site for a period of one year after official acceptance by the Village. The Irrevocable Letter of Credit shall terminate upon acceptance by the Village.

The Subdivider agrees to make the necessary repairs to said improvements due to defects of workmanship or materials caused by the Subdivider, or subcontractors or material supplies, but not for repairs caused or necessitate by Acts of God, or any acts of omissions beyond the control of the Subdivider during the one-year period.

2.

The Irrevocable Letter of Credit shall be retained for the percentage estimated in writing from time to time, by the Village Engineer or Designated Engineer as needed to protect the Village in conjunction with the Cost Estimate attached marked Exhibit "A" and made a part hereof until acceptance of said improvements by the Village; at which time said improvements shall meet the Village Subdivision Ordinance of the Village in effect on ____________ / ____________ / ____________ , 2 ____________ , and approved by the Village Engineer or Designated Engineer in writing. The Irrevocable Letter of Credit shall be released as to any further obligations.

Dated this ____________ day of ____________ , 2 ____________ .

_____ By: President/Owner

 

VILLAGE OF CHERRY VALLEY, ILLINOIS

By:  _____ President of the Board of Trustees
By:  _____ Plats Officer
ATTEST:
_____ Village Clerk

 

(Letter Head)
IRREVOCABLE COMMERCIAL LETTER OF CREDIT

Amount: _____	No. _____
	Date: _____

 

Village Board of Cherry Valley
202 E. State Street
Cherry Valley, IL 61016

Gentlemen:

WE HEREBY OPEN our Irrevocable Commercial Letter of Credit Number ____________ in your favor, available to you on behalf of   (Subdivider or Corporate Name) whose address is: ____________ , hereinafter referred to as "Subdivider," for a total sum of ____________ ($ ____________ ), to be accepted by your signed statement that drawing of funds by you upon this Letter of Credit is due to the default or failure to perform by the Subdivider the following improvements on or before (day/month/year).

The construction of (list public improvements) located in Plat No. ____________ in (name of subdivision) as set forth in the attached cost estimate prepared by (project engineer) dated: ____________ / ____________ / ____________ set forth as Job. No. ____________ , a copy of which is attached hereto, marked "Exhibit A" and made a part hereof.

The Cherry Valley Village Engineer or Designated Engineer will notify the bank in writing, when either:

1.

The improvements have been timely and satisfactorily completed and the credit may be released; or

2.

The Subdivider has failed to perform or is in default.

All drafts drawn under this Letter of Credit must be marked: "Drawn under (name of financial institution), N.A., Letter of Credit Number ____________ .

This credit is valid under   (day/month/year)   and drafts drawn hereunder, is accompanied by documents as specified above, will be honored if presented to the main office of   (name of financial institution)   N.A., whose address is: ____________ on or before that date.

This Letter of Credit sets forth, in full, the terms of our undertakings, 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 or incorporate herein by reference any document, instrument or agreement.

We hereby engage with drawers that drafts drawn and negotiated in conformity with the terms of this Letter of Credit will be honored on presentation.

This credit is subject to the Uniform Customs and Practices of documentary Credits (1984 Revision) International Chamber of Commerce Brochure No. 400.

Neither this letter nor the credit hereby established is negotiable, or otherwise transferrable without the written consent of (name of financial institution).

Sincerely,

____________
(name, title)

(Code 1974, § 18-11)