Agenda - Council - 12/28/2006 - Laserfiche WebLink

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~e commence an action against Developer in Anoka Counh~ District Court to suecificallv_ enforce Developer's performance of Developer's obligations under this Agre ~f commence n action against Developer in Anoka Countv District Court to recover monetary damages lg~ if Developer is in_default in the performance of an obligation the performance of which Developer has secured with a letter of credit Citv may draw on the letter of credit for anv amount up to the full amount of the letter of credit (re ardless of the amount necessary to cure the default) If Citv draws on a letter of credit Citv must deposit the proceeds of the letter of credit in a bank account in the City's name If the Citv elects to proceed pursuant to Section 20 1(d) and to perform (or to engage third parties to performl obligations of the Developer that the letter of credit secures City may from time to time, withdraw from said account and retain an amount equal to the amount of the costs and expenses City incurs in connection with the performance of such obligations If the proceeds of the letter of credit are not sufficient to reimburse Citv for all costs and expenses Citv incurs to perform the secured obligations of Devel~er Developer remains obligated to reimburse Citv for the additional costs and expenses If after all Developer or City have fully performed all of the obligations of Developer under this Agreement the performance of which the letter of credit secured and City reimburses itself for all costs and expenses it incurred in the performance of such obligations Citv must remit the remaining letter of credit proceeds to Developer If Citv has commenced or elects to commence a action to recover its dama es pursuant to Section 20 1(fl Citv may hold the proceeds of the letter of credit. less amounts the City uses to reimburse City for costs and expenses Citv incurs in performing Developer's obligations until a court enters a iud went m the City's action at which time (~itv mnct apply the nr~~pP~~ of thn lot-*o.• ..f .. a•* t - -- --- --- -- v ll~{.bVl vi vi Glilb. 1GAA amounts the Citv has deducted there from to reimburse the Citv for costs and expenses City mcurred in performing the Developer's obligations towards the satisfaction of anv u~ dement against Developer If the proceeds of the letter of credit exceed the amount necessary for the satisfaction of anv iudgment City obtains against Developer and the reimbursement of costs and expenses Citv incurs or will incur to perform Developer's secured obligations. City must remit the remaining balance of the letter of credit proceeds to Developer Notwithstanding anything else in this Section 20 1 if Developer's default is the failure to obtam an extension or renewal of a letter of credit or a re lacement Letter of credit not less than th'-one days before the date a letter of credit the Citv holds will expire Citv may exerci a its rights under Section 20 1(g) without prior notice to Developer and without ivm Developer an opportunity to cure Developer's default If Citv draws on a letter of credit as a result of Developer's failure to provide an extension or renewal of a letter of credit or a replacement letter of credit. City must hold the proceeds of the letter of credit in a separate account city maintains with a state pr national hank nr nthPr f;nanri~l institution. may use the proceeds of the letter of credit in the same manner and to the same exten Ci ma use roceeds of a draw on a letter of credit ursuant to Section 20.1 and City will remit unused proceeds of the letter of credit to the Developer upon the i9~aai~~aoo v2 co vi i~iaio6 24 -149-