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HomeMy WebLinkAbout12 130 Letter of Credit #5030 (Castle Bridge Development Inc.) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE [ ,KB; - 111 ,�GyIALIT Gp,0 , BY-LAW NO. 2012 -130 BEING A BY -LAW AUTHORIZING THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE TO DEMAND PAYMENT OF LETTER OF CREDIT #5030 DATED OCTOBER 28, 2010 • WHEREAS The Corporation of the Municipality of Kincardine entered into a Subdivision Agreement with Castle Bridge Development Inc. on August 2, 2006 concerning Parts 1 -17, Plan 3R -2254 and Plan 3M -98, Municipality of Kincardine (Stonehaven Subdivision). AND WHEREAS pursuant to the Subdivision Agreement Castle Bridge Development Inc. was obligated to construct the Park Street Extension. AND WHEREAS Castle Bridge Development Inc. has failed to complete its obligation under the Subdivision Agreement with respect to the Park Street Extension. AND WHEREAS as security for the Subdivision Agreement and the Park Street Extension — Phase 2, a Letter of Credit was issued by United Communities Credit Union Ltd. in the amount of SIX HUNDRED AND NINETY -NINE THOUSAND DOLLARS ($699,000.00), Letter of Credit #5030. • AND WHEREAS the Letter of Credit #5030 expires on October 31, 2012. AND WHEREAS by letter dated October 1, 2012 the Municipality was notified that Castle Bridge Development Inc. is not renewing the Letter of Credit. NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine is hereby authorized to demand payment on the Letter of Credit #5030 from United Communities Credit Union Ltd. 2. That the Mayor and Chief Administrative Officer be authorized and directed to execute, on behalf of the Council of The Corporation of the Municipality of Kincardine any documentation necessary to facilitate the demand for payment and the collection of the payment from the United Communities Credit Union Ltd. • .12 Page 2 Letter of Credit #5030 (Castle Bridge Development Inc.) By -law By -law No. 2012 - 130 3. This By -law may be cited as the "Letter of Credit #5030 (Castle Bridge Development Inc.) By -law." READ a FIRST and SECOND TIME this 17 day of October, 2012 • IVA - • L `G � - Clerk m READ a THIRD TIME and FINALLY PASSED this 17 day of October, 2012 M Clerk