HomeMy Public PortalAbout1990_10_10_R257~ccsb~rg in ~[rirgini~
RESOLUTION NO.
90-257
PRESENTED October 10, 1990
AMENDED October 10, 1990
ADOPTED October 10, 1990
A RESOLUTION:. AUTHORIZING PAYMENT INTO AN ESCROW ACCOUNT OF THE FD-NDS
FROM THE LETTER OF CREDIT ISSUED BY SIGNET BANK/MARYLAND
FOR BEAUREGARD ESTATES PHASE I
WHEREAS, the Fort Beauregard Development Corporation has been declared in default of its
contract for installation of public improvements in Beauregard Estates Phase I; and
WHEREAS, a clslm for payment to the town of the funds guaranteed by the letter of credit issued
by Signet Bank/Maryland was made on September 25, 1990; and
WHERF_U~, Signet Bank/Maryland purchased Beauregard Estates Phase I at the Trustee's sale
held on September 27, 1990; and
WHEREAS, a payment of $206,991.84, which is the full mount of the letter of credit, was
received on October 5, 1990 by Deputy Town Attorney Deborah Welsh; and
WHEREAS, officials of Signet Bank/Maryland have requested that the letter of credit funds be
held in an escrow account for up to 30 days to enable them to provide the town with a new contract
for inst~ll~tion of public improvements and letter of credit for Beauregard Estates Phase I; and
WHEREAS, approval of Signet Bank/Maryland's proposed $206,991.84 escrow account, with
Deputy Town Attorney Deborah Welsh acting as escrow agent, is recommended by the Town Manager
and Director of Engineering and Public Works.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. Payment by Signet Bank/Maryland of the letter of credit funds in the amount of
$206,991.84 into an escrow account with Deputy Town Attorney acting as escrow agent is approved.
SECTION II. The funds shall be held in escrow until November 5, 1990.
SECTION HI. If Signet Bank/Maryland does not provide a new contract for public improvements
and performance guarantee in a form approved by the Town Attorney and approved by the Town
-2-
A RESOLUTION: BEAUREGARD ESTATES PHASE I
Council for the uncompleted bonded improvements in Beauregard Estates Phase I prior to November
5, 1990, then the $206,991.84 plus accrued interest shall be transferred to the town's general fund and
be used to pay for the completion of the uncompleted bonded improvements in Beauregard Estates
Phase I.
PASSED this 10th day of October ~ 1990.
ATTEST:
Clerk of
beauregard. 1
Robert E. Sevila, Mayor
Town of Leesburg