11_-_K_-_Letter_of_Credit.pdf
PDF 93 KB Posted
- Solicitation number
- AVN RCS-26-0047
- Issued by
- Maricopa County, Phoenix City, Arizona
About this file
This is an Irrevocable Standby Letter of Credit template document issued by the City of Phoenix Aviation Department for use by tenants or licensees operating at Phoenix Sky Harbor International Airport. The letter of credit serves as a performance security mechanism and financial guarantee instrument required under concession lease agreements. The template is designed to be completed with specific bank information, tenant identification, dollar amounts, and expiration dates as determined by the underlying lease or license agreement. The City of Phoenix Aviation Department, specifically the Deputy Aviation Director, is designated as the beneficiary of the letter of credit and retains the authority to draw funds based on tenant non-performance or failure to renew the instrument prior to expiration.
The letter of credit operates under the International Standby Practices (ISP98) standards endorsed by the International Chamber of Commerce Publication No. 590, with any matters not governed by ISP98 subject to Arizona state law. The City may draw upon the letter of credit by submitting a signed certificate from the Aviation Director or designee detailing circumstances such as tenant failure to perform lease obligations, tenant failure to provide a replacement letter of credit at least sixty days before expiration, or notification from the issuing bank of non-renewal. The letter of credit automatically renews annually unless the bank provides written notice of non-renewal at least sixty days prior to the expiration date. The bank must be notified of improper drawings within the prescribed timeframe and may reject drawings that do not comply with the letter of credit terms. Partial and multiple drawings are permitted under this instrument.
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Text version
Exhibit “ ”, Page 1
__________ [name of the bank]
IRREVOCABLE STANDBY LETTER OF CREDIT
NO. _____
To: City of Phoenix – Beneficiary Aviation Department Business & Properties Division 2485 East Buckeye Road Phoenix, Arizona 85034-4301 Attn: Deputy Aviation Director
Applicant: __________ [Insert name of the tenant or licensee]
Amount: $_________ [Insert dollar amount]
Expiration Date: __________ [Insert date]
__________ [name of the bank] (Bank) hereby establishes its Irrevocable Standby Letter of Credit No. __________ (Letter of Credit) in favor of the City of Phoenix, Beneficiary under this Letter of Credit. The City of Phoenix may draw on this Letter of Credit at the Bank’s office located at __________ [insert address of the Phoenix office(s)], accompanied by the following documents:
1. A certificate signed by the Director of the City of Phoenix Aviation Department, or his designee, stating one or more of the following:
A. The City of Phoenix is drawing against this Letter of Credit because __________ [insert name of tenant or licensee] has failed to perform its obligations under or failed to comply with its __________ [insert name and number of the lease or license], or any amendment thereto, or any replacement agreement, and the City of Phoenix requires payment under the Letter of Credit in the amount of $__________.
B. The City of Phoenix is drawing against this Letter of Credit because __________ [insert name of tenant or licensee] has failed to provide a replacement irrevocable standby letter of credit prior to sixty (60) days before the expiration date of this Letter of Credit as required by its __________ [insert name of the lease or license], or any amendments thereto, or any replacement agreement, and the City of Phoenix requires payment under this Letter of Credit in the amount of $__________.
C. The City of Phoenix is drawing against this Letter of Credit because the
City has received notice from __________ [insert name of the bank] that this Letter of Credit will not be extended and the City requires payment under this Letter of Credit in the amount of $__________.
2. This original Letter of Credit.
Exhibit “ ”, Page 2
The Director’s Certificate and the original Letter of Credit may be sent to the Bank by first-class mail through the United States Postal Service, prepaid delivery by a commercial air courier or express delivery service, or by hand-delivery to our office listed above. Alternatively, copies of the Director’s Certificate and the original Letter of Credit may be sent by facsimile transmittal (FAX) to __________ [insert fax number] or by email to __________ [insert email address]. The City of Phoenix may confirm the Bank’s receipt of a FAX or email drawing by calling the Bank at __________ [insert the bank’s telephone number].
If the City of Phoenix presents an improper drawing, the Bank will notify the City in writing sent by a commercial overnight courier service or by FAX to 602-273-4083 that the drawing was not made according to the terms and conditions of this Letter of Credit.
The notice shall state the reason(s) why the Bank believes the drawing is improper and that the Bank is awaiting a corrected drawing.
Partial drawings and multiple drawings are permitted under this Letter of Credit.
This Letter of Credit will automatically be renewed for a one (1) year from the Expiration Date set forth above and upon each anniversary of the Expiration Date, unless, at least sixty (60) days prior to the Expiration Date or prior to any anniversary thereof, the Bank notifies the City of Phoenix and __________ [insert name of tenant or licensee] in writing by certified or registered mail or delivery by a commercial overnight courier service that the Bank elects not to renew this Letter of Credit.
The Bank hereby agrees that this Letter of Credit shall be duly honored upon receipt of the Director’s Certificate and original Letter of Credit as provided above.
This Letter of Credit is subject to the International Standby Practices (ISP98) endorsed by the International Chamber of Commerce Publication No. 590. Matters not governed by ISP98 shall be governed by and construed in accordance with the laws of the State of Arizona.
__________ [name of the bank] __________ [address of the bank]
By:__________ [signature of authorized agent] __________ [type name of authorized agent]
Date:____________________
2460989 Revised 9/25/2024
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