HomeMy Public PortalAbout1999_09_14_r277The Town of
Leesburg,
¥irginia
PRESENTED September 14, 1999
RESOLUTION NO. 99-277 ADOPTED September 14, 1999
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
LEESBURG GATEWAY CONDOS AND RELEASING THE LETTER
OF CREDIT FROM EASTERN AMERICAN BANK CONFIRMED BY
FIRST UNION NATIONAL BANK
WHEREAS, Council Resolution #91-107, adopted on May 14, 1991, approved a letter of
credit from Eastern American Bank in the amount of $367,000.000 as security to guarantee
installation of public improvements by Leo Chiang Development III, LP, as shown on plans
approved by the Director of Engineering and Public Works for Leesburg Gateway Condos; and
WHEREAS, Council Resolution #95-48 adopted on March 14, 1995 approved a letter of
credit from Eastern American Bank confirmed by Signet Bank/Virginia because Eastern
American Bank had gone below the minimum requirements of the town for a financial institution
issuing letters of credit; and
WHEREAS, in October 1997 the town was notified that an arrangement between Signet
Bank and First Union National Bank was made and the letter of credit from Eastern American
Bank .confirmed by Signet Bank would now be confirmed by First Union National Bank; and
WHEREAS, in December 1997, Eastern American Bank merged with Resource Bank;
and
WHEREAS, Resource Bank has requested to substitute the current letter of credit from
Eastern American Bank confirmed by First Union National Bank with a Resource Bank letter of
credit; and
A RESOLUTION:
-2-
APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
LEESBURG GATEWAY CONDOS AND RELEASING THE LETTER
OF CREDIT FROM EASTERN AMERICAN BANK CONFIRMED BY
FIRST UNION NATIONAL BANK
WHEREAS, the Director of Finance has approved the financial standing of the Resource
Bank; and
WHEREAS, the Director of Engineering and Public Works recommends release of the
letter of credit from Eastern American Bank confirmed by First Union National Bank in the
current amount of $130,393.84 contingent upon receipt of the replacement letter of credit from
Resource Bank.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as
follows:
SECTION I. The substitute letter of credit from the Resource Bank provided by Leo
Chiang Development III, LP, in the amount of $130,393.84 in a form approved by the Town
Attorney is approved.
SECTION II. The letter of credit from Eastern American Bank confirmed by First Union
National Bank in the amount of $130,393.84 is released contingent upon approval by the Town
Attorney of the substitute letter of credit from the Resource Bank.
PASSED this 14th day of September, 1999.
Clerk of Council
ltfi~es E. Clem, Mayor
Town of Leesburg
R:LeesburgGatewayCondos