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31681-1 Coral Option I, LLC - OBR & Released BondsOUTSTANDING BOND REPORT Tract Number: Development: Developer/Owner: 31681-1 Andalusia Coral Option 1, LLC Bond Company: Harco National Insurance Company Surety 702 Oberlin Road Raleigh, NC 27605 Attn: Steve Kane Outstanding / Released Bonds: Bond Type Bond No. Amount: Date Replaced or Released Grading 104041328 $1,000,000 Released 09/07/2006 0765417 $136,500 *MOVED THIS BOND TO 31681-3* 104027114 $948,0 Reduced w/rider 11/23/2005 $300,000 rider Released 12/19/2019 Fugitive Dust Control LOC#68001256 $100,000 Replaced w/ LOC#01890285 (PM 10) 06/19/2006 LOC#01890285 $100,000 Expired; Released 12/19/2019 LOC#1308 $135,000 Released when BofA rider received? 104073682 $2,472,190 Released 08/04/2008 Performance 104073685 $2,784,850 Released 08/04/2008 104073684 $20,930 Released 08/04/2008 Labor & 104073681 $2,472,190 Released 11/04/2008 Material 104073683 $2,772,440 Released 11/04/2008 Warranty 104994553 $173,818 Released 09/15/2009 104994554 $154,995 Released 09/15/2009 eca � .1LIfUli\1:1 -- MEMORANDUM Date: December 19, 2019 To: Monika Radeva, City Clerk From: Amy Yu, Associate Engineer f; Re: PM-10 Bond for Tract Map 31681, Andalusia Please replace the following dust control bond held in your file for the above referenced tract. The new dust control bond amount is based on 91 acres ($2,000/acre = $182,000, 75% in bond = $136,500) Please release the following performance securities: Tract Map No. 31681 Type of Bond Bond No. Performance Amount Dust Control 104027114 $300 000 reduced amount Dust Control LOC 01890285 (expired) $100.000 Please retain the following attached performance security: Tract Map No. 31681 Type of Bond Bond No. Performance Amount Dust Control 0765417 $136,500 Previous Developer: Nolan Sparks Coral Option 1, LLC 81570 Carboneras La Quinta, CA 92253 Surety Company: Travelers Casualty and Surety Company of America (104027114) One Tower Square Hartford, CT 06183 If you have any questions, please contact me at extension 7047. Thank You. ta dgra CALIFORNIA December 19, 2019 Nolan Sparks Coral Option 1, LLC 81570 Carboneras La Quinta, CA 92253 Re: Tract Map No. 31681 Andalusia To whom it may concern: Per authorization from the Design and Development Department, the City Clerk's office hereby releases Dust Control Bond Nos. 104027114 in the amount of $300,000, and LOC 01890285 in the amount of $100,000. If you have any questions, please call me at (760) 777-7092. Sincerely, f Nichole Romane Deputy City Clerk c: Brian McKinney, Public Works Director/City Engineer Travelers Casualty and Surety Company of America File 12/08/2005 THU 11:15 FAX 205 945 6528 Legal Dept 0003/003 11/23/2005 17:14 FAX 760 771 1841 SPARKS CONSTRUCTION 11/23/2005 WED 13:41 FAI 760 777 7155 City of La Quinta PAR TO; FROM: DATE: RE: Twif 4 Sep aumm MEMORANDUM Q 002 uoovou .tune S. Greek, City Clerk Timothy R. Jonasson, Public Works Director / City Engineer November 23, 2005 Reduction of Dust Control Security, Tract No. 31681, Coral Mountain The following Dust Control Security has been approved for reduction by the Public Works Director for a total secured amount of $49.aDQ. The-ourrent PM10 Bond #1040271 14 and Letter of Credit (LOC) #1308 rn$y be reduced in any combination to achieve the amount required, with the exception that the LOC may not be reduced to less than 2696 of the total secured amount. In this case $100,000 Is to be in the form of a LOC. Please forward securities upon receipt of the appropriate replacement securities to: Sparks Construction, Inc. Attn: Nolan Sparks P.O. Box 1716 La Quinta, CA 92247. LOC Number LOC Amount 1308 $13&000= Bond Number Bond Amount 104021114 $048X00.100 Total $i 083,000.00 APPROVED REDUCTION AMOUNT $400,000.00 Cc: Project File I, Tract No. 31681 1691WA V.= of Dust Cwtml LOC.doo w BOND NO.: #104027114 PREMIUM: TRACT/PARCEL MAP. NO.: PERFORMANCE BOND Coral Option I, L.L.C., a Delaware Company, as Principal, and Travelers Casualty & Surety Company of America, As Surety, are bound unto the City of La Quinta, State of California, in the penal sum of Nine Hundred Forty -Eight Thousand Dollars and Zero Cents ($948,000.00), for the payment of which sum, we bind ourselves, our heirs, executors, successors and assigns, jointly and severally, as follows: The condition of the obligation is that Coral Option I, L.L.C. is the developer of the Coral Mountain Property (golf course and residential area) between Avenue 58 and Avenue 60; and Madison Street and Monroe Street. And Whereas the City of La Quinta, California's Fugitive Dust (PM-10) Mitigation Plan requires that this bond be filed with the City as a condition precedent to development of said property. Now Therefore, if the principal shall fully comply with all requirements of the City of La Quinta, California's Fugitive Dust (PM-10) Mitigation Plan for the development of said property, then this obligation shall cease and be void, otherwise it shall remain in full force and effect. If the principal fails to perform dust abatement pursuant to said Dust Mitigation Plan, the Surety expressly agrees to pay the City of La Quinta the principal sum of this security, or any portion thereof demanded, upon ten (10) days notification in writing of said failure to perform from the City of La Quinta, California. If legal action is required to recover under this bond, the protection afforded by it shall cover the payment of reasonable attorney fees to City. I 14% PALM pNATION ESERT AL �K October 8, 2003 IRREVOCABLE STANDBY LETTER OF CREDIT NO. 1308 Beneficiary:Amount: $135,000.00 City of La Quinta 78-495 Calle Tampico La Quinta, Ca. 92253 To Beneficiary: We hereby establish our irrevocable Standby Letter of Credit in your favor, by order of Coral Option I, LLC, 530 Beacon Parkway West, Suite 800, Birmingham, AL, 35209. The amount set forth above will be available to you by submission of your Sight Draft(s), through proper clearing channels (consult your bank), accompanied by this original Letter of Credit and Beneficiary's officially -signed statement certifying that: Coral Option 1, LLC, a Delaware Limited Liability Company, has failed to perform dust abatement for development of the Coral Mountain property (golf course and residential area) between; Avenue 58 and Avenue 60, and Madison Street and Monroe Street, and that Coral Option 1, LLC has been notified in writing of the failure to perform at least ten (10) days prior to drawing(s). Each draft must state on its face, "Drawn under Palm Desert National Bank Letter of Credit No. 1308 dated October 8, 2003". Drafts may not be presented for purposes which pre -date this Letter or, under any circumstances, later than the expiration of the Letter on October 3, 2004. This Letter of Credit is transferable only upon our prior approval and payment of an appropriate transfer fee. We hereby agree to duly honor drafts properly drawn on, and in strict compliance with the terms of, this Letter of Credit, on presentation during normal banking hours to this bank at 73-745 El Paseo, Palm Desert, CA 92260, ATTN: Note Dept. This Letter of Credit is subject to law of the State of California, including the Uniform Commercial Code, and International Chamber of Commerce rules pertaining to Uniform Customs and Practice for Documentary Credits (ICC Publication #500, 1993 revision). TO BE VALID, THIS LETTER OF CREDIT MUST BE SIGNED BY TWO OF THIS BANK'S CORPORATE OFFICERS. PALM DESERT NATIONAL BANK By: By: Lozan Step n Christian Senior Vice President Senior Vice President 73-745 E4 Paseo, Palm Desert, CA 92260 • 70-390 Highway 111, Rancho Mirage, CA 92270 • 47000 Washington Street, La Quinta, CA 92253 (760) 340-1145 • WWW.PDNB.COM T4ht 4 4 Q" MEMORANDUM To: Veronica J. Montecino, CMC, City Clerk From: Sp�Ed immer, Development Services Principal Engineer Via: T othy R. Jonasson, P.E., Public Works Director / City Engineer Date: September 4, 2009 Re: Release of Warranty Securities for Tract Map No. 31681-1, Andalusia, On -Site and Off -Site Improvements Please release the following warranty securities held in your files for the above referenced tract. The improvements were accepted by City Council on July 1, 2008. The warranty amounts and the address to the developer and Surety Company are as follows: TRACT No. 31681-1 Warranty Bond No. Warranty Amount 104994554 offsite $154,995 104994553 (onsite) $173.818 Developer: Mr. Nolan Sparks Coral Option 1, LLC P.O. Box 1716 La Quinta, CA 92247 Surety Company: Travelers Casualty & Surety of America One Tower Square Hartford, CT 06183 Cc: Project File I, Tract Map No. 31681-1 TATracts_Parcel Maps_SP\30000-39999\31681-1\internal correspond ence\Release of Warranty Security memo TM 31681-1.doc P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLS TAMPICO LA QUINTA, CALIFORNIA 92253 September 15, 2009 Nolan Sparks Coral Option 1, LLC P. O. Box 1716 La Quinta, CA. 92247 Re: Tract Map 31681-1 To Whom It May Concern: (760) 7 7 7 - 7 0 0 0 FAX (760) 777-7101 Per authorization from the Public Works Department, the City Clerk's Office hereby releases Warranty Bond Nos. 104994553 and 104994554 in the amounts of $173,818 and $154,995 respectively. If you have any questions, please call me at (760) 777-7002. Y ; VERONICA J. NTECINO, City Clerk City of La Q nta, California CC' Tim Jonasson, Public Works Director/City Engineer Travelers Casualty & Surety File T4hf 4 4a" MEMORANDUM To: Veronica J. Montecino, CMC, City Clerk From: Ed Wimmer, Development Services Principal Engineer Via: eimothy R. Jonasson, Public Works Director / City Engineer Date: October 31, 2008 Re: Release of On -Site and Off -Site Labor & Materials Security for Tract Map No. 31681-1, Andalusia Please release the following Labor & Materials security held in your files for the above referenced tract. The on -site and off -site improvements were accepted by City Council on July 1, 2008; therefore, the retention of the Labor & Materials 90- day period was completed on October 1, 2008. The Labor & Materials security amount and the address to the developer and Surety Company are as follows: TRACT No. 31681-1 Bond No. Bond Amount 104073683 (onsite) $2,772,440 104073681 (offsite) $2,472,190 Developer: Mr. Nolan Sparks Coral Option 1, LLC P.O. Box 1716 La Quinta, CA 92247 Surety Company: Travelers Casualty & Surety of America One Tower Square Hartford, CT 06183 Cc: Project File I, Tract Map No. 31681-1 Amy Yu, Assistant Engineer II TATracts_Parcel Maps_SP\30000-39999\31681-1\internal correspondence\Release of L & M Security memo TM 31681-1.doc P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLS TAMPICO (760) 7 7 7 - 7 0 0 0 LA QUIN-rA, CALIFORNIA 92253 FAX (760) 777-7101 November 4, 2008 Nolan Sparks Coral Option 1, LLC P. 0. Box 1716 La Quinta, CA. 92247 Re: Tract Map 31681-1 To Whom It May Concern: Per authorization from the Public Works Department, the City Clerk's Office hereby releases Labor & Materials Bond Nos. 104073681, and 104073683 in the amounts of $2,472,190 and $2,772,440 respectively. If you have any questions, please call me at (760) 777-7002. Sincerely, -� VERONICA J. MONTECINO, City Clerk City of La Quinta, California cc: Tim Jonasson, Public Works Director/City Engineer Travelers Casualty & Surety File LABOR AND MATERIALS BOND BOND NO. #104073681 WHEREAS the City of La Quinta, State of California, and Coral Option I, LLC, a Delaware Limited Liability Company (hereinafter designated as "principal") have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which said Agreement, dated 28th day of September 2004, and identified as Subdivision Improvement Agreement Tract Map #31681-1 (On Site Improvements; Avenue 58 j is hereby referred to and made a part hereof; and WHEREAS, under the terms of said agreement, F ntering upon the performance of the work, to file a good and suffici a, ae City of La Quinta to secure the claims to which reference is Lg with 2 of Part 4 of Division 3 of the Civil Code of thi Section 308) NOW, THEREFORE, the Principal and the under, re held and firmly bound unto the City of La Quinta and all contractors, suocontraciors, aaborers, material men and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedures in the sum of Two Million Four Hundred Seventy -Two Thousand One Hundred Ninety and No/100 Dollars ($2,472,190.00) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition, to the fact amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. LABOR AND MATERIALS BOND BOND NO. #104073683 WHEREAS the City of La Quinta, State of California, and Coral Option I, LLC, a Delaware Limited Liability Company (hereinafter designated as "principal") have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which said Agreement, dated 28th day of September 2004, and identified as Subdivision Improvement Agreement Tract Map #31681-1 (On Site Improvements) is hereby referred to and made a part hereof; and WHEREAS, under the terms of said agreement, Principal is required before entering upon the performance of the work, to file a good and sufficient payment and bond with the City of La Quinta to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California. NOW, THEREFORE, the Principal and the undersigned as corporate surety, are held and firmly bound unto the City of La Quinta and all contractors, subcontractors, laborers, material men and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedures in the sum of Two Million Seven Hundred Seventy -Two Thousand Four Hundred Folly and No/100 Dollars ($2,772,440.00) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition, to the fact amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. Titf 4 4 Q" MEMORANDUM To: Veronica J. Montecino, CMC, City Clerk From: Ed Wimmer, Development Services Principal Engineer Via: �4_nothyR. Jonasson, Public Works Director / City Engineer Y 9 Date: July 31, 2008 Re: Release of Performance Securities for Tract Map No. 31681-1, Andalusia, On -Site and Off -Site Improvements Please release the following on -site and off -site Performance securities held in your files for the above referenced tract. The on -site and off -site improvements were accepted by City Council on July 1, 2008. The security amounts and the address to the surety company are as follows: TRACT No. 31681-1 Performance Bond No. Performance Amount 104073682 (off -site) $2,472,190 104073684 (on -site) $20,930 104073685 (on -site) $2,784,850 Developer: Mr. Nolan Sparks Coral Option 1, LLC P.O. Box 1716 La Quinta, CA 92247 Surety Company: Travelers Casualty & Surety of America One Tower Square Hartford, CT 06183 cc: Project File I, Tract Map No. 31681-1 Amy Yu, Assistant Engineer II T:\Tracts_Parcel Maps_SP\30000-39999\31681-Unternal correspond ence\Release of Performance memo TM 31681-1.doc P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLS TAMPICO (760) 7 7 7 - 7 0 0 0 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 August 4, 2008 Nolan Sparks Coral Option 1, LLC P. O. Box 1716 La Quinta, CA. 92247 Re: Tract Map 31681-1 To Whom It May Concern: Per authorization from the Public Works Department, the City Clerk's Office hereby releases Performance Bond Nos. 104073682, 104073685, and 104073684 in the amounts of $2,472,190, $2,784,850, and $20,930 respectively. If you have any questions, please call me at (760) 777-7002. Sincerely r VERONICA J. 1OONTECINO, City Clerk City of La Quinta, California cc: Tim Jonasson, Public Works Director/City Engineer Travelers Casualty & Surety File PERFORMANCE BOND BOND NO. #104073682 WHEREAS, the City of La Quinta, State of California (hereafter referred to as the "City"), and Coral Option I, LLC., a Delaware Limited Liability Company (hereinafter referred to as "Principal"), have entered into an agreement whereby Principal agrees to install and complete certain designated improvements, which said agreement, dated September 28, 2004, and identified as Subdivision Improvement for Tract #31681-1 (On -Site Improvements) is hereby referred to and made a part hereof; and r WHEREAS, said Principal is required under the terry. C k4 01 Sy, 3h a bond for the faithful performance of said agreement. 1 NOW THEREFORE, we the Principal and Travelers: .y of America, as Surety, are held and firmly bound unto the city [lion Four Hundred Seventy -Two Thousand One Hundred Ninety a wful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, and executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder of the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or specifications. PERFORMANCE BOND BOND NO. #104073685 WHEREAS, the City of La Quinta, State of California (hereafter referred to as the "City"), and Coral Option I, LLC., a Delaware Limited Liability Company (hereinafter referred to as "Principal"), have entered into an agreement whereby Principal agrees to install and complete certain designated improvements, which said agreement, dated SeRtember 28, 2004, and identified as Subdivision Improvement for Tract #31681-1 (On -Site Improvements) is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW THEREFORE, we the Principal and Travelers Casualty and Surety Company of America, as Surety, are held and firmly bound unto the city in the penal sum of Two Million Seven Hundred Eighty -Four Thousand Eight Hundred Fifty and No/100 ($2,784,850.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, and executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder of the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or specifications. P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 September 7, 2006 Sparks Construction Inc. P. 0. Box 1716 La Quinta, CA. 92247 Re: Tract Map 31681 To Whom It May Concern: (760) 777-7000 FAX (760) 777-7101 Per authorization from the Public Works Department, the City Clerk's Office hereby releases Performance Bond 104041328 for grading in the amount of $1,000,000. If you have any questions, please call me at (760) 777-7002. Sincerely, DEBBIE H. POWELL, Interim City Clerk City of La Quinta, California cc: Ed Wimmer, Principal Engineer Travelers Insurance Co. File FAITHFUL PERFORMANCE BOND (LQMC 8.02.01 & CBC 3311) Bond #104041328 Grading Bond WHEREAS, the City of La Quinta, California, is prepared to issue E PAoadMent Permit # 4_03_ in a with the La Quinta Municipal Code, and the California Building Code which is adopted by reference, to Cora 1 Out i on 1.1 L LC . as Principal, whereby Principal will be authorized to perform certain grading improvements identified in the permit, and as further detailed on the grading plans referenced therein, to privately -owned property gully known to the City and others as Coral Mountain ; and WHEREAS, Said Principal is required under the terns of the permit to famish a bond for the faithful performance of the grading work In accordance with the approved plans, specifications, and permit requirements; or, if the work is abandoned (rot completed as required), Principal shall correct or eliminate any hazardous conditions that may exist. NOW, therefore, we the Principal and Travelers Casualty & Surety Co. of America , as Surety, are held and fimnly bound unto the City of La Quinta, as Obligee, in the penal sum of .. Dollars ( 1, 000 , 0) money dr nited es, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation Is such that If the above bonded Pr'undipal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said permit and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Obligee, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. As a part of the obligaton secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the permit or to the work to be performed thereunder or the specifications accompanying the - . same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the permit or to the work or to the specifications. _— Page 1 of 2 FM N P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLE TAMPICO (760) 7 7 7 - 7 0 0 0 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 June 19, 2006 Nolan Sparks Coral Option I, LLC P. 0. Box 1716 La Quinta, CA. 92247-1716 Re: Tract Map 31681-1 To Whom It May Concern: On June 19, 2006, the City Clerk's Office received Letter of Credit No. 01890285 (BNP Paribas, San Francisco Branch) in the amount of $100,000, as a replacement for Letter of Credit No. 68001256 (Bank of America) in the amount of $100,000. Letter of Credit No. 68001256 is hereby released. If you have any questions, please call me at (760) 777-7002. Sincerely, JUNE S. GREEK, City Clerk City of La Quinta, California cc: Ed Wimmer, Construction Manager File Received by: Date: ejr<1(`4 �p WO BNP PARIBAS BNP PARIBAS SAN FRANCISCO BRANCH' ONE FRONT STREET 3RD FLOOR SAN FRANCISCO, CA '. 4111--532 FOR BNP PARIBAS REFERENCE ONLY: LC NUMBER: 01890285 USD AMOUNT: 100,000.00 EXPIRY DATE: DECEMBE:R 11., 2006 JUNE 1.4, 2006 IRREVOCABLE STANDBY LETTER OF CREDIT NO.: 01890285 AMOUNT: US$100,000.00 (UNITED STATES DOLLARS ONE HUNDRED THOUSAND AND 00/ 100) DATE AND PLACE OF EXPIRY: DECEMBER 11, 2006 AT OUR COUNTERS BENEFICIARY: C I IN OF LA QU I NTA 78- 495 CALLS TAMPICO LA OU I NTA, CA 92 253 WE HEREBY ISSUE OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. 01890285 IN YOUR FAVOR BY ORDER OF CORAL OPTIONS I, LLC, 79285 RANCHO LA QUINTA DRIVE::, LA QUINTA, CA 922n3. LETTER OF CREDIT IS AVAILABLE AT SIGHT IN ONE OR MORE DRAWINGS FOR UP TO US$100,000.00 (UNITED STATES DOLLARS ONE HUNDRED THOUSAND AND 00/100) UPON PRESENTATION OF YOUR DRAFTS DRAWN AT SIGHT ON US AND MARKED "DRAWN UNDER BNP PARIBAS SAN FRANCISCO IRREVOCABLE LETTER OF CREDIT NO. 01890285 AND ACCOMPANIED BY YOUR WRITTEN STATEMENT ON YOUR LETTERHEAD PURPORTEDLY SIGNED BY YOUR AUTHORIZED OFFICE OR REPRESENTATIVE READING AS FOLLOWS: "CORAL OPTIONS I, LLC, A DELAWARE LIMITED LIABILITY COMPANY, HAS FAILED TO PERFORM DUST ABATEMENT FOR DEVELOPMENT OF THEN CORAL_ MOUNTAIN PROPERTY (GOLF COURSE AND RESIDENTIAL_. ARE) BETWEEN AVENUE 58 AND AVENUE 60, AND MADISON STREET AND MONROE STREET, AND THAT CORAL OPTION I, LLC HAS BEEN NOTIFIED IN WRITING OF THEIR FAILURE TO PERFORM AT LEAST TEN (10) DAYS PRIOR TO DRAWING(S)" DRAFTS AND DOCUMENTS ARE TO BE PRESENTED AT OUR OFFICE LOCATED AT BNP PARIBAS, ONE FRONT STREET, 25TH FLOOR, SAN FRANCISCO, CA 94111--03E:,`_5. THIS LETTER OF CREDIT EXPIRES AT OUR COUNTERS WITH OUR CLOSE OF BUSINESS ON DE:.CEMBER 11, 2006. WE HEREBY ENGAGE WITH YOU THAT DRAFTS DRAWN AND DOCUMENTS PRESENTED UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT WILL BE DULY HONORED BY US. THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS 11993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 500,. 1 BN P PARI BAS HORIZED SIGNATU PAGE c DATED: JUNE 14, POOG OUR REF: 01890285 s R Bankof America 400- BANK OF AMERICA - CONFIDENTIAL DATE: DECEMBER 22, 2005 IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER: 68001256 APPLICANT REFERENCE NUMBER: G86S-OLDPD1308 BENEFICIARY CITY OF LA QUINTA 78-495 CALLE TAMPICO LA QUINTA CA 92253 PAGE: 1 APPLICANT CORAL OPTIONS 1, LLC 79285 RANCHO LA QUITA DRIVE LA QUINTA, CA 92253 ISSUING BANK BANK OF AMERICA, N.A. 1 FLEET WAY PA6-580-02-30 SCRANTON, PA 18507-1999 AMOUNT NOT EXCEEDING USD 100,000.00 NOT EXCEEDING ONE HUNDRED THOUSAND AND 00/100'S US DOLLARS EXPIRATION DECEMBER 18, 2006 AT OUR COUNTERS WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 68001256 IN YOUR FAVOR. CREDIT AVAILABLE WITH BANK OF AMERICA, N.A. BY PAYMENT OF BENEFICIARY'S DRAFT(S) AT SIGHT DRAWN ON BANK OF AMERICA, N.A. DRAFTS MUST BE ACCOMPANIED BY: 1. THE ORIGINAL LETTER OF CREDIT AND ALL AMENDMENTS, IF ANY 2. A DATED STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED OFFICER OF THE BENEFICIARY ON BENEFICIARY'S LETTERHEAD READING AS FOLLOWS: QUOTE CORAL OPTION I, LLC, A DELAWARE LIMITED LIABILITY COMPANY, HAS FAILED TO PERFORM DUST ABATEMENT FOR DEVELOPMENT OF THE CORAL MOUNTAIN PROPERTY (GOLF COURSE AND RESIDENTIAL AREA) BETWEEN: AVENUE 58 AND AVENUE 60, AND MADISON STREET AND MONROE STREET, AND THAT CORAL OPTION I, LLC HAS BEEN NOTIFIED IN WRITING OF THE FAILURE TO PERFORM AT LEAST (10 ) DAYS PRIOR TO DRAWING (S) . UNQUOTE PARTIAL DRAWINGS ARE PERMITTED. DRAFT(S) AND DOCUMENTS MAY BE PRESENTED AT OUR OFFICES AT BANK OF ORIGINAL Bank of America, N.A. Trade Operations Mail Code: PA6-580-02-30 1 Fleet Way, 2nd Floor, Scranton, PA 18507 00-35-0201NSB 6-2000 _dnkofAmerica 4; BANK OF AMERICA CONFIDENTIAL PAGE: 2 THIS IS AN INTEGRAL PART OF LETTER OF CREDIT NUMBER: 68001256 AMERICA, N.A., L.A. DATA CENTER BUILDING, 1000 WESTTEMPLE STREET SUITE -LEVEL 7, LOS ANGELES, CA 90012-1514 MAILCODE: CA9-705-07-05 OR TO BANK OF AMERICA, N.A., ONE FLEET WAY, SCRANTON, PA 18507. COMMUNICATIONS WITH RESPECT TO THIS LETTER OF CREDIT SHALL BE IN WRITING AND SHALL BE ADDRESSED TO US AT, ONE FLEET WAY, SCRANTON PA 18507, ATTN: TRADE SERVICES DEPARTMENT -STANDBY UNIT, PHONE: 1-800-370-7519, SPECIFICALLY REFERRING TO THE NUMBER OF THIS LETTER OF CREDIT. EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS CREDIT IS ISSUED SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (ISP98), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590. IF YOU REQUIRE ANY ASSISTANCE OR HAVE ANY QUESTIONS REGARDING THIS TRANSACTION, PLEASE CALL 800-370-7519 . THORI D SIGNATURE THIS DOCUMENT CONSISTS OF 2 PAGE(S). ORIGINAL Bank of America, N.A. Trade Operations Mail Code: PA6-580-02-30 1 Fleet Way, 2nd Floor, Scranton, PA 18507 00-35-0201NSB 6-2000