ATTACHMENT_D-_Irrevocable_Letter_of_Credit-_ILC.docx

ATTACHMENT D

IRREVOCABLE LETTER OF CREDIT (ILC)

Prior to the County’s execution of the Contract and within ten (10) business days of the award, the Contractor shall furnish to the County an irrevocable letter of credit (ILC) in the amount of Twenty Thousand Dollars ($20,000). The irrevocable letter of credit shall be in the form of a written commitment from a federally insured institution located in the State of Florida, with a rating of AAA or higher by Barnes Financial Reports, to pay the entire amount of the ILC until the expiration of the letter or upon presentation by the County (the beneficiary) of a written demand thereof. Neither the financial institution nor the Contractor can revoke or condition the letter of credit. The Contractor shall provide the County a credit rating that indicates the financial institution has the required rating as of the date of the issuance of the ILC. The ILC shall cover the entire period of the contract, including any extensions thereto.

The following format shall be used by the issuing financial institution to create an ILC:

(Issuing Financial Institutions Letterhead or Name and Address)

ISSUE DATE ______________________

IRREVOCABLE LETTER OF CREDIT NO. ____________________________

ACCOUNT PARTY’S NAME ________________________________________

ACCOUNT PARTY’S ADDDRESS ____________________________________

1. We hereby establish this irrevocable and transferable Letter of Credit in your favor for one or more drawings up to Twenty Thousand United States Dollars $20,000. This Letter of Credit is payable at [issuing financial institution] office at [issuing financial institution’s address] and expires with our close of business on ______, or any automatically extended expiration date.

2. We hereby undertake to honor your sight draft(s) drawn on the issuing financial institution for all or any part of this credit if presented with this Letter of Credit at the office specified in paragraph 1 of this Letter of Credit on or before the expiration date or any automatically extended expiration date.

3. It is a condition of this Letter of Credit that it is deemed to be automatically extended without amendment for one year from the expiration date hereof, or any future expiration date, unless at least 60 days prior to any expiration date we notify you by certified mail that we elect not to consider this Letter of Credit renewed for any such additional period. At the time we notify you, we also agree to notify the account party by the same means of delivery.

4. This Letter of Credit is subject to the Uniform Customs and Practice (UCP) for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500.

5. If this credit expires during an interruption of business of this financial institution as described in Article 17 of the UCP, the financial institution specifically agrees to effect payment if this credit is drawn against within 30 days after the resumption of our business.

Sincerely, [Issuing financial institution]

For the purposes of this ILC, notices to Orange County shall be provided to: