20 Motion to authorize the City Manager to sign an irrevocable standby letter of credit for $393,520.00

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E ~ IRREVOCABLE STANDBY LETTER OF CREDIT NO. 175 DATE: April 30, 2008 EXPIRATION DATE: January 30, 2009 BENEFICIARY: . Office of Rural Community Affairs 1700 Rcrth Cer.gress Avenue. Suite 220 Austin, TX 78701 Gentlemen: APPLICANT: City of Paris P. O. Box 9037 Paris, TX 75461-9037 We hereby issue our Irrevocable Standby Letter of Credit No. 175 in your favor up to the aggregate amount of US$393,520.00 (Three Hundred Ninety-Three Thousand Five Hundred Twenty and 00I100 U. S. Dollars) available by draft(s) drawn on us at sight, marked "Drawn under Irrevocable Standby Letter of Credit No. 175 of The Liberty National Bank in Paris, Texas. 1. Beneficiary's written statement purportedly signed by its authorized representative reading as follows: "Office of Rural Community Affairs ("Beneficiary") hereby certifies that City of Paris ("City") did not perform as requiced under its Housing Infrastructure Fund Contract No. 719068." 2. This original Letter of Credit and all amendments thereto (if any). In the event of a partial drawing the original Letter of Credit will be endorsed and returned to you, unless the Letter of Credit has expired or the amount available is reduced to zero. Special Conditions: Partial drawings permitted. We hereby engaae with you that documents drawn under and in compliance with the terms of this Irrevocable Standby Letter of Credit will be duly honored if presented for payment to The Liberty National Bank In Paris, Texas, 305 Lamar Avenue, Paris, Texas 75460, ATTN: Philip R. Cecil prior to 3:OOPM on January 30, 2009 Central time on or before the expiration date of this Letter of Credit. This Letter of Credit is subject to the International Standby Practices 1998, International Chamber of Commerce Publication No. 590 ("ISP98"), in effect on the date this Letter of Credit is issued, and as to matters not addressed by ISP98 is subject to and governed by Texas State Law and applicable U. S. Federal Law. The Liberty National Bank in Paris, TX Philip R. Cecil, Chairman of the Board EXHIBIT ~ m U 07 Is