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24890-1 Landmark Land 90CITY QF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this 30th day of April 19 90 , by and between LANDMARK LAND COMPANY OF CALIFORNIA INC. "Landmark" J.M. PETERS COMPANY INC.("peters" Landmark and peters are hereinafter Collectively referred to as 11SUBDIVICER", AND CITY OF LA QUINTA, a municipal corporation of the State of california, hereinafter referred to as "CITY". WITNESSETH: WHEREAS, the Subdivider has prepared and filed a final subdivision map of Tract No. 4890-1 in the City of La Quinta, County of Riverside, for approval by the City; and WHEREAS, as a condition precedent to the approval of said map by City, Subdivider is required to offer dedication of those parcels of land intended for streets, highways, and other public use, and also to construct and install or agree to construct and install certain improvements on said dedicated parcels; and WHEREAS, Subdivider, by said map, has offered for dedication to City for public use certain streets and easements shown on said map; and WHEREAS, City desiros to accept the streets and easements shown on said map for public use, and certain other such improvements; and WHEREAS, as a condition precedent to the acceptance of the dedication of such streets and easements by City, Subdivider is required to enter into an agreement with the City to construct certain improvements; and WHEREAS, the total cost of such improvements has been estimated by the City Engineer to be approximately $2.845.400.00 Dollars; and WHEREAS, subdivider, by said map, has proposed to utilize certain parcels of land for private streets, and also to construct and install or agree to construct and install certain improvements; and WHEREAS, even though said private streets shall not be dedicated to City for public use, City desires to insure that said streets are Constructed to the same standards and specifications required by City for public streets; and that perimeter lot landscaping and perimeter wall$ are constructed to the standards and specifications required by the City' and WHEREAS, the total cost of such improvements has been estimated by the City Engineer to be approximately $21600,000.00 Dollars; NOW, THEREFORE, IT IS AGREED by and between the parties thereto as follows: 1. Subdivider, at his 'sole cast and expense, shall construct and install the street, drainage,landscaping, domestic water, sanitary sewer mnO other improvements required to be constructed or agreed to ,)e constructed as a condition precedent to the approval of said final map and acceptance of such streets and easements, as shown on the "Improvement Plans for Tract No.24890-111; copy of which is 'ow on file in the office of the City Rngineer of the City and which is referred to and incorporated herein as though set forth in full. w e I SUBDIVISION IMPROVEMENT AGREEMENT - Tract 24890-1 Page 2 2. Subdivider shall furnish to City securities satisfactory in form and substance to City Attorney executed by a corporation authorized to transact surety business in the State of California, one class security to be in the aggregate sum of $5,911,829.00 dollars to assure the faithful performance of this Agreement, said security class hereinafter referred to as "Performance Bonds)", and one security to be in the aggregate sum of $1,398, 215*00dollars to assure the payment of the cost of labor and materials supplied to construct the required improvements, said security class hereinafter referred to as "Payment Bond(s)". All securities furnished pursuant to this Agreement shall be furnished in amounts commensurate with the estimated value of the various improvement items set forth in Exhibit 'A' which is attached hereto and made apart hereof. Subdivider shall furnish a minimum of four. AA.. ) separate Performance Bonds and a minimum of two mseparate Payment Bonds as identified by the respective Bond Groups shown in Exhibit W. 3. DELETED 4. Portions of the improvements required herein for Tract No. 24890-1 may be deferred to later date subject to the approval of the City as hereinafter set forth on the attached Exhibit 'A'. In any event any deferred security shall be furnished to City prior to the approval and recordation of Map for Tract ,No. 24890-1. 5. Subdivider shall commence the construction and installation of said improvements within ninety (90) days from the approval of such "Improvement Plans" for Tract No. 24890-1 by the City Engineer, and shall complete the construction of said improvements within eighteen, (18) months from the date of aammonoomont. Cubdividew may at it* aele diaareti*n extend the completion period described herein past the eighteen (18) months time period to any future date that Subdivider may select. It is understood, however, that a 'condition precedent to extending the completion period, Subdivider, shall furnish to City securities similar in form and substanc6 to those required by Article 2 herein to cover the extended completio: period selected by Subdivider. The value of said securities !shall be sufficient to insure the performance of improvement work'that remains incomplete at the time of said time extension. Toe security posting amount shall be determined by the City Engineer; 6. Before final approval of the street improvements, the Subdivider will place survey monuments in accordance with the provisions of the State Subdiyisi.on Map Act and the Subdivision Ordinance of the City of La Quihta as shown on the Tract Map. After the monuments are set# Subdivider shall furnish to the City Engineer written notice that th� monuments have been set, and written proof that the engineer or surveyor has been paid for setting the monuments, or as otherwise prov�ded in the Subdivision Map Act. 7. The city ngineer or his duly authorized representative, upon written r quest of Subdivider, shall inspect the improvements herein agreed be constructed and installed by Subdivider, and if determined to be in accordance with the applicable city standards, shall recommend the acceptance of such improvements by the City. SUBDIVISION IMPROVEMENT AGREEMENT - Tract 24890-1 Page 3 8, The City �ngineer, or his duly authorized representative, upon written re nest of Subdivider, shall inspect the Streets herein agreed to be con tructed by Subdivider, and determine if said Streets have been constructed in Compliance with the standards and specifications required by City for public streets. 9. Subdivider sha 1 complete such improvements plans including any corrections an revisions thereto necessary to comply with the applicable City standards as determined by the City Engineer, within thirty (30) days after approval of the final map. 10. Subdivider heteby guarantees such improvements for a period of one year following: the completion by Subdivider, and acceptance by City, against :any defective work or labor done, or defective materials furnished, n the performance of this Subdivision Improvement Agreement by Sub ivider and shall repair or replace any such defective work or material subsequently discovered. 11. The labor and material security required by Article 2 herein shall be retained to; secure payment to the contractor, his subcontractors and to persons rdnting equipment or furnishing labor and materials for six (6) months after completion and approval of the work required by Article 1 herein. 12. Ton percent (10%) of the performance security required by Article 2 herein shall be r tained by the City for one (1) year to support the guarantee of the im rovements required herein. 13. In the event that the Subdivider fails to perform any obligation hereunder within si4ty (60) days after the City has mailed written Notice of Default to the Subdivider at the address given below, the Subdivider authori es City to perform such obligation and agrees to pay the entire cost o such performance by City. 1.4. in the event th4t Subdivider fails to perform any obligation hereunder, Subdivid r agrees to pay all costs and expenses incurred by City in securin performance of such obligations, including costs of suit and re sonable attorney's fees. In the event that Subdivider is unable to pe form within the time limits herein due to causes beyond his contr 1, such as strikes, acts of God, etc., all time limits will be extende by the same amount of time as caused by such delay. 15. Subdivider hereby binds itself, its executors, administrators and assigns, and',agrees to indemnify, defend and hold the City harmless of any loses, claims, demands, actions or causes of action of any nature whatsoever, arising out of or in any way connected with Subdividers, performance hereinunder in the construction of the improvem nts agreed to be constructed and installed hereunder by the ;ubdivider, including costs of suit and reasonable attorney s fees. 16. Notwithstanding 'he above language, Landmark shall be solely responsible for all ;bligations pursuant to this Agreement with respect to those improvem its referred to in Exhibit "A" as Bond Groups 2 and 5 (the "Landmark Improvements"), including the construction and installation; of the Landmark Improvements, the provision of securities to fissure the performance of the Landmark Improvements, the placement of qurvey monuments in connection with the Landmark Improvements, the guaranty of the Landmark Improvements, the authorization of tho City tQ perform the Landmark improvements at Landmark's cost, and the ind'mnification of the City for any losses arising out of the Landmark Imptvements (collectively the "Landmark obligations"). Notwithstanding the above language, Peters shall be solely responsible for all oblgations pursuant to this Agreement with respect to those i.mprov ments referred to in Attachment "A" as Bond Groups 1, 3, and 4 (the "Peters Improvements"), including the construction and installation of the Peters Improvements, the provision of securities to assure the performance of the Peters Improvements, the placement of survey monuments in conneotion with the Peters Improvements, the guAranty of the Peters Improvements, the authorization of the City to perform the Peters Improvements at Peters' cost, and the indemnifi8ation of the City for any losses arising out of the Peters improvements (collectively the "Peters Obligations"). Landmark shall have no liability, cost or expense arising from the Peters Obligations, and Peters shall have no liability, cost or expense arising out of the Landmark Obligations. i SUBDIVISION IMPROVEMENT AGREEMENT - Tract 24890-1 Page 4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY OF LA QUINTA _off. By; Ronald . Kiedrowski City Manager ATTEST: City Clerk SUBDIVIDER: �Itlll� Address# •Company Inc* Landmaik"and Company of California, Inc. By: sc'e - P.�s- Address: La( , Iwo Y Subscribed and Sworn to before me this 30th day of April _ 19 90 It OFFICIAL SEAL ' LINDA A. CHANDLER L/� Seal of Notary NOTARY PUBLIC-CALIFORNIA PRINCIPAL OFFICE IN SAN OIEGO COUNTY '. My C as END. Mr 6 1"2 REVXEWED AND APPROVED 5'-/- yo r• Date � SUBBIVISION IMPROVEMENT AGREEMENT - Tract 24890-1 Page 5 EXHIBIT 'A' The following improvements are d sighted by Bond Groups to permit the phasing of the required i provements together with the required securities: ' Bond Groups NO,..I,, No. 3 and No. 4; J.M. Peters Company shall provide Performa ce Bonds and Payment Bonds prior to the approval and recordation of Map for Tract No. 24890-1 improvements are to be'accomplished solely at the expense of the Subdivider and �o be completed within eighteen (18) months as herein provided in this Agreement. Bond Group No. 2; Landpark Land Company shall provide Performance Bonds priot to the approval and recordation of the Map for Tract NoLe.ab-complished 4890-.1. Improvements are to solely at the expense of the Subdivider and to be Completed within eighteen (18) months as herein provided in this Agreement, except as follows: the Subdivid r may seek reimbursement in the provided rovided in Conlition No. 36 of the Conditions of Approval for Tract No..24890 for a two lane facility for Avenue 52 from the centerline of Washington Street to a point 1980' easterly to meet other Avenue 52 required improvements. Bond Group -No. 5- Landtoark band Company shall provide Performance Bonds priot to the approval and recordation of the Map for Tract N9. 24890-1. Improvements are defer'ed for future construction by the City and/or by means o� a cooperative agreement with others which is subject to th approval of the City. Construction shall be on an as need d basis as determined by the City. Traffic.. Signals: The subdivider shall bear fifty (50%) percent of the cost of traffic signals at the intersection of Jefferson Street and Avenue 50 including incidentals. The Subdivider sh ll bear fifty (50%) percent of the cost of traffic s gnals at the intersection of Jefferson Street end Avenue 52 including incidentals. The Subdivider shall bear one hundred (100%) percent of the Cost of tr#ffic signals at the intersection of Jefferson Street and Pomel.a including inoi.dentals. The Subdivider shall bear one hundred (100%) percent of the cost of traffic signals at the intersection of Avenue 52 and Cetrino including incidentals. upon written demand of the City the Subdivider shall deposit his share of the estimated cost of traffic signal improvements with the City. The Subdivider may seek partial relm�ursement, of some traffic signal costs as provided* in Condition No. 33 of the Conditions of Apppovt.k and in a legal manner subject to the approval of the City Council. 10,1 SUBDIVISION IMPROVEMENT AGREEMENT-24890-1 Page 6 BOND IMPROVEMENT DESCRIPTION PERFORMANCE PAYMENT GROUP BOND BOND 1 On -site streets and Drainage $ 2,600,290 1 300,145 Improvements and Perimeter lott^e� `�ro�►^c Cho, Z.cjU landscaping 2 Off -site streets, and drainage 2,615,400* N/A and Median island landscaping (Letter of Credit) Tunnel beneath Jefferson Street 230,000* N/A (better of Credit) 3 Sanitary sewer facilities 77,791 38,896 Domestic water facilities 118,348 59,174 4 Survey monuments 101000W, -0- 5 Traffic Signals at ►7effer:son Street and Avenue 50 5001000 -0- Traffic Signals at Jefferson Street and Avenue 52 50,000 --0- Traf f is Signals at Jefferson Street and Pomelo 80,000 -0- Traffic Signals at Avenue 52 and Cetrino Each improvement item listed hereon may be bonded individually, or bonded collectively with other improvements with a single bond, provided however, that improvements which are grouped together and bonded with a single bond are correspondingly identified in the 'Bond Group' column ae being of the same group. *Letter of Credit to assure both performance and payment maybe accepted in lieu of banding. Performance Payment Bond Bond Bond Group 1 - Totals :q $ 2,6001290 $ 1,300,145 Bond Group 2 - Totals = 2,845,400 -0- Band Group 3 M Totals = 196,139 ,x,w 98,070 Bond Group 4 - Totals m 51000-/nJ -0- Bond Group 5 - Totals = 2604000 -0- GRAND TOTALS $ 51911,829 $ lt398,215 BOND No. 3SM 757 366 00 Premium: jiuu. annual LABOR AND MATERIAL PAYMENT BOND (Subdivision) KNOW ALL MEN BY THESE PRESENTS, That We, J M Peters Com an ' Inc. as Principal, and AMERICAN MOTORISTS INSURANCE COMPANY Surety, are head and firmly bound Unto the QtX of La Quinta, California as Obligee, in the sum of Ten Thousand and no/100-------------------_--- Dollars { s i0,000,00 } , lawful money of the United --- States, for the payment of which sum well and truly to be made, we bind ourselves jointly and severally, firmly by these presents, THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH That Whereas, said Principal has entered into a Subdivision Agreement with said Obligee, dated , in which said Principal agrees to construct designated public improvements, as follows: 11 4 MbNUMENT BOND (Tract 24890-1) and, as a condition of approving said Subdivision, the Principal is required to dive a Labor and Material Payment Bond as herein provided. NOW, THEREFORE, if said Principal or any contractor or subcontractor fails to pay for any materials, provisions, or rented equipment used in upon, or for or about the construction of the public improvements or performance of the work to be done, or for any work or labor done of any kind, in or on such improvements, said Surety will pay the same in an amount not exceeding the sum set forth above and, in addition, the Surety agrees to pay reasonable attorneys' fees in the event that it beeches necessary to bring an act;i on to enforce this bond. This bond shall inure to the benefit of the contractor, his subcontractors, and to persons renting equipment or furnishing labor or materials to them for the improvements. Signed and sealed on _ April 5, 1990 INC. Venturer Principal Robext J Trape, Vice President D. Bra_1%baw, Vice President CO. n- far jW AN Wf AMERICAN MOTORISTS INSURANCE COMPANY SURETY BOND ENDORSEMENT BOND NO. 3SM 756 364 00 To be attached to and form a part of SUBDIVISION IMPROVEMENT Bond, issued by the undersigned company, as Surety on behalf of J.M. PETERS COMPANY, INC. as Principal, and in favor of CITY OF LA QUINTA as Obligee, Effective 11/20/1991, the Principal and the Surety hereby agree to amend the attached Bond as follows: 4 BOND AMOUNT IS HEREBY REDUCED TO NOW READ: TWO HUNDRED FORTY FOUR THOUSAND FIVE HUNDRED NINE AND N0/100 ($244,509.00) All else remains the same. Provided that the liability under this endorsement shall be part of, and not in addition to, the liability under the attached Bond, and in no event shall be cumulative. Nothing herein contained shall vary, alter or extend any of the provisions, conditions, or other terms of this Bond except as above stated. Signed, sealed and dated this 11TH day of NOVEMBER 1991. ETERS v • BY: Robert J.ra p Vice President a c ACCEPTED: CITY OF LA QUINTA y BY: AMERIrCAN TORISTS INSURANCE COMPANY BY:WI A J. SHUPPER ATT RN Y IN FACT Endorsement No:01 C AMERICAN MOTORISTS INSURANCE COMPANY SURETY BOND ENDORSEMENT BOND NO. 3SM 757 199 00 To be attached to and form a part of SUBDIVISION IMPROVEMENT Bond, issued by the undersigned company, as Surety on behalf of J.M. PETERS COMPANY, INC. as Principal, and in favor of CITY OF LA QUINTA as Obligee, Effective 11/20/1991, the Principal and the Surety hereby agree to amend the attached Bond as follows: BOND AMOUNT IS HEREBY REDUCED TO NOW READ: TWO HUNDRED THIRTY FOUR THOUSAND, ONE HUNDRED NINETY FOUR AND N0/100 ($234,194.00) All else remains the same. Provided that the liability under this endorsement shall be part of, and not in addition to, the liability under the attached Bond, and in no event shall be cumulative. Nothing herein contained shall vary, alter or extend any of the provisions, conditions, or other terms of this Bond except as above stated. Signed, sealed and dated this 11TH day of NOVEMBER 1991. ERS C ANY, INC. BY: Robert J. ap Vice Presiden ACCEPTED: ' CITY OF LA QUINTA AMER AN MOTORISTS INSURANCE COMPANY BY:WILL J. SHUPPER ATTOR E IN FACT BY: Endorsement No:01 A • y BOND NO, 3SM 757 199 00 PREMIUMt Included in Performance Bond LABOA AND MATERIAL PAYMENT BOND (Subdivision), KNOW ALL MEN BY THESE PRESENTS, That We, J. M. Peters Company, Inc. as Principal, and AN M0TQ$1ST5JNURAN_C-- _COMPANY Surety, are held and firmly bound unto . T e Clty of La Quinta, California as Obligee, ,n the Burn 'of -ONE HUNDRED NINETY-EIGHT THOUS �TlIV„QHUNDRED FIFTEEN Dollars ($ 198,215 _. lawful money of the United States, for the payment: of which sum well and ''ruly to be made, we band ourselves jointly and severally, firmly by these presents. THE CONDITION OF THE FOREGOING OBLIGATION 1S SUCH, That, whereas, said Principal has entered into a Subdivision Agreement with said obligee, dated .. , in which said Principal agrees to construct designated public improvements, as follows: STREET AND DRAINAGE IMPROVEMENTS and, as a condition of approving said Subdivision, the Principal is required to give a Labor and Material Payment Bond as herein provided. NOW, THEREFORE, if said Principal or any contractor or subcontractor fails to pay for any materials, provisions, or rented equipment used in upon, or for or about the construction of the public .improvements or performance of the work to be done, or for any work or labor done of any kind, in or on such improvements, said Surety will pay the sane in an amount not exceeding the sum set forth above and, in addition, the Surety agrees to pay reasonable attorneys' fees in the event that it becomes necessary to bring an action to enforce this bond. This bond shall inure tv the benefit of the contractor, his subcontractors, and to persons renting equipment or furnishing labor or materials to them for the improvementst Signed and sealed on March 23, 1990 J.M. PETERS COMPANY, INC. Vent r Principal 8 : Richard D. Bradshaw, Vice Pres n Motorists Insurance Co. S u re v Wi iam J. Shupper L/C 6-UNIQUE Scot*labankorl"oF THE BANK OF NOVA SCOTIA New York Agency One Liberty Plaza, New York, N.Y. 10006 Name of Issuer: THE BANK OF NOVA SCOTIA One Liberty Plaza New York, New York 10006 Date and Place of Issue: April 14, 1994 New York, New York Applicant: KSL Recreation Corporation (the "Account Party") for the account of: KSL Landmark Corporation 56-140 PGA Blvd. La Quinta, California 92253 Attn: Nola Dyal, Esq._ IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER: 2185/94/80085 Date and Place of Expiry: April 13, 1995 New York, New York Beneficiary: City of La Quinta 78-105 Calle Estado La Quinta, CA 92253 Amount: $260,000.00 We hereby issue in your favor our irrevocable credit for the account of KSL Landmark Corporation (the "Applicant"), which is available for payment by your draft(s) at sight on The Bank of Nova Scotia, ("Scotiabank"), One Liberty Plaza, 24th Floor, New York, New York 10006 (Attention: Muriel Forde), accompanied by the following documents: Written statement, purportedly signed by the City Manager of Beneficiary, stating that Applicant has failed to comply with its obligations under that certain Subdivision Improvement Agreement entered into between Beneficiary and Landmark Land Company of California, Inc. (whose obligations were assumed by the Applicant) for the purpose of installation of traffic signals located at (1) Jefferson and Avenue 50, (ii) Jefferson and project entrance, (iii) Jefferson and Avenue 52, and (iv) Avenue 52 and project entrance, in the City of La Quinta. 24107737.5 041394 1821E 93103976 Drafts submitted hereunder must be presented for payment at e address set forth above. This Irrevocable Standby Letter of Credit shall expire (the "Expiry Date") on the earlier of (i) April 13, 1995 (and shall be automatically renewed without amendment for one (1) year from the date of this Irrevocable Standby Letter of Credit and annually thereafter, unless sixty (60) days prior to any such date Scotiabank notifies Beneficiary that it elects not to renew for such additional term) and (ii) the delivery to Scotiabank of a certificate purportedly signed by an officer or representative (including the City Manager) of the Beneficiary stating that the Beneficiary has accepted the above -referenced traffic signals. Upon its termination, you shall promptly deliver the original counterpart of this Irrevocable Standby Letter of Credit to us for cancellation. Special Conditions to Drawings under this Irrevocable Standby Letter of Credit: All drafts must be marked as follows: "Drawn under The Bank of Nova Scotia Irrevocable Standby Letter of Credit No. 2185/94/80085." We engage with you that drafts drawn under and in conformity with the terms of this credit will be duly honored on presentation if presented by you at our office address above on or before the Expiry Date. The original of this Irrevocable Standby Letter of Credit must accompany the documents required under this credit. This credit is subject to the Uniform Customs and Practices for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500. THE E By. By. 24107737.5 041394 1824E 93103976 - 2 - 4 OUTSTANDING BOND REPORT Name: Landmark Land Co/J.M. Peters Co Tract No. 24890-1 Date of Contract: April 30, 1990 Required Bond Amounts: $2,600,290 - on -site streets/dainage/perimteter landscaping $1,300,145 - on -site streets/labor $2,615,400 - off -site streets/drainage/median landscaping $ 230,000 - Jefferson St. tunnel $ 77,791 - sewer $ 38,896 - sewer/labor $ 118,348 - water $ 59,174 - water/labor $ 10,000 - monument $ 50,000 - signal at Jefferson/50 $ 50,000 - signal at Jefferson/52 $ 80,000 - signal at Jefferson/Pomelo $ 80,000 - signal at Cetrino/52 Dates of Bond Reductions: Off -site improvements reduced to $2,039,821 (includes signals $ 260,000, sidewalks $181,470, 10% warranty $ 266,392, labor/materials security $1,331,959) Perimeter landscaping reduced to $2,205,600 on 9/17/91 Grading reduced to $244,509 on 9/17/91 Street/Drainange reduced to $234,194 on 9/17/91 ** Water & Sewer (street/drainage bond) reduced to $57,669 on 12/17/91 Outstanding Bonds: Amount: $ 10,000 $ 10,000 $ 2,400,000 - per.land $1,200,000 - labor $2,205,600 - per.land $ 396,429 - str/drn $ 198,215 - labor $ 234,194 - str/drn $2,845,387 - $ 444,561 - grading $ 244,509 -grading $ 260,000 - $ 258,930 - peri.wall $ 239,040 - landscaping Bond No. 3SM 757 366 00 3SM 757 366 00 3SM 757 806 00 3SM 757 806 00 3SM 757 806 00 3SM 757 199 00 3SM 757 199 00 3SM 757 199 00 LOC#2590 3SM 756 364 00 3SM 756 364 00 LOC #2185/94/80085 LOC #9788565 LOC #9788573 Date Cancelled/Released: Replaced by JMPeters bond Reduced 9/17/91 Released 9/9/99 Released 9/9/99 Reduced 9/17/91 Reduced 9/17/91 Released 2/19/99 Released 2/19/99 Name of Issuer: OAK TREE SAVINGS BANK ("Oak Tree") 233 Carondelet Street New Orleans, LA 70130 Date and Place of Issue: April 3, 1990 New Orleans, Louisiana Applicant: Landmark Land Co. of California, Inc. 78-140 Calle Tampico La Quinta, California 92253 Attn: Legal Department IRREVOCABLE DOCUMENTARY LETTER OF CREDIT NUMBER: • 2590 Date and Place of Expiry; April 3, 1991 New Orleans, Louisiana 3eneficiary: City of La Quinta 78-105 Calle Estado La Quinta, CA 92253 Amount:$2,845,387.00 We hereby issue In your favor our irrevocable credit for the account of Applicant, which is available for pa,�ment by your draft(s) at sight on Oaf: Tree Savings Bank, 233 Carondelet Street, New Orleans, Louisiana 70130, accompanied by the following documents: Written statement, signed by the City Manager of Beneficiary, stating that Applicant has failed to comply with its obligations under that certain Subdivision Improvement Agreement to be entered into between Beneficiary and Applicant for construction of street improvements on, under or through (i) Jefferson Street, (ii) Avenue 52, and (iii) Calle Rondo, in the City of La Quinta. Drafts submitted hereunder may be presented for payment at the address set forth above or to Oak Tree Mortgage Company, 74-333 Highway 111, Suite 102, Palm Desert, California 92260. This Irrevocable Documentary Letter of Credit shall expire on April 3, 1991, and shall be automatically renewed without amendment for one (1) year from the date of this Irrevocable Documentary Letter of Credit and annually thereafter, unless sixty (60) days prior to any such date Oak Tree notifies Beneficiary that it elects not to renew for such additional term. Notwithstanding anything contained.herein to the contrary, this Irrevocable Documentary Letter of Credit shall expire upon written acceptance by Beneficiary of the above -referenced street improvements. Special Conditions: All drafts must be marked: "Drawn under Oak Tree Savings Bank 2590 Irrevocable Documentary Letter of Credit No. We engage with you that drafts drawn under and in conformlt- with the terms of this credit will be duly honored on presentation if presented by you at our office address above on or before the Expiry Date. The original of this Irrevocable Documentary Letter of Credit must accompany the documents required tinder this credit. This credit is subject to the Uniform Customs and Practices for Documentar"r Credits, 1983 Revision, International Chamber of Commerce Publication No. 400. A ho ized Signature