Irrevocable Standby Letter of Credit and Amendment between CoreStates Bank, N.A., Gulf Insurance Company, and Michael A. Karp (ATX Telecommunications Services)
Summary
CoreStates Bank, N.A. issued an irrevocable standby letter of credit for Gulf Insurance Company, with Michael A. Karp (trading as ATX Telecommunications Services) as the applicant. The letter of credit initially allowed Gulf Insurance Company to draw up to $130,000, later increased to $179,786.50 by amendment. The credit is automatically extended annually unless the bank provides notice of non-renewal. The agreement is governed by New York law and international banking rules, and the bank is obligated to honor valid drafts presented before expiration.
EX-10.11 20 ex10-11.txt LETTER OF CREDIT 1 Exhibit 10.11 CoreStates PHILADELPHIA NATIONAL BANK, INCORPORATED AS CORESTATES BANK, N.A.
DEAR BENEFICIARY: WE HAVE ESTABLISHED THIS IRREVOCABLE LETTER OF CREDIT IN YOUR FAVOR AS BENEFICIARY FOR DRAWINGS UP TO USD130,000.00 (ONE HUNDRED THIRTY THOUSAND AND 00/100 U.S. DOLLARS) EFFECTIVE IMMEDIATELY. THIS LETTER OF CREDIT IS ISSUED, PRESENTABLE AND PAYABLE AT OUR OFFICE AT P.O. BOX 13866, 530 WALNUT STREET, LETTER OF CREDIT DEPARTMENT, SEVENTH FLOOR, FIND CODE 1-9-7-1, PHILADELPHIA, PA 19106 AND EXPIRES WITH OUR CLOSE OF BUSINESS ON 30-JUL-1994. THE TERM "BENEFICIARY" INCLUDES ANY SUCCESSOR BY OPERATION OF LAW OF THE NAMED BENEFICIARY INCLUDING WITHOUT LIMITATION ANY LIQUIDATOR, REHABILITATOR, RECEIVER OR CONSERVATOR. WE HEREBY UNDERTAKE TO DULY HONOR YOUR SIGHT DRAFT(S) DRAWN ON US, INDICATING OUR CREDIT NO. 512671, FOR ALL OR ANY PART OF THIS CREDIT UPON PRESENTATION OF YOUR DRAFT DRAWN ON US AT OUR OFFICE SPECIFIED IN PARAGRAPH ONE (1) ON OR BEFORE THE EXPIRATION DATE HEREOF OR ANY AUTOMATICALLY EXTENDED EXPIRY DATE. EXCEPT AS EXPRESSLY STATED HEREIN, THIS UNDERTAKING IS NOT SUBJECT TO ANY AGREEMENT, REQUIREMENT OR QUALIFICATION. THE OBLIGATION OF PHILADELPHIA NATIONAL BANK, INCORPORATED AS CORESTATES BANK N.A. UNDER THIS LETTER OF CREDIT IS THE INDIVIDUAL OBLIGATION OF PHILADELPHIA NATIONAL BANK, INCORPORATED AS CORESTATES BANK N.A. AND IS IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO. THIS LETTER OF CREDIT IS DEEMED TO BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR ONE (1) YEAR FROM THE EXPIRATION DATE OR ANY FUTURE EXPIRATION DATE, UNLESS AT 2 LEAST THIRTY (30) DAYS PRIOR TO SUCH EXPIRATION DATE, WE NOTIFY YOU BY CERTIFIED MAIL THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED FOR ANY SUCH ADDITIONAL PERIOD. THIS LETTER OF CREDIT IS SUBJECT TO AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE 1983 REVISION OF THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL CHAMBER OF COMMERCE (PUBLICATION NO. 406) AND IN THE EVENT OF ANY CONFLICT THE LAWS OF NEW YORK WILL CONTROL. IF THIS CREDIT EXPIRES DURING AN INTERRUPTION OF BUSINESS AS DESCRIBED IN ARTICLE 19 OF SAID PUBLICATION 400. THE BANK HEREBY SPECIFICALLY AGREES TO EFFECT PAYMENT IF THIS CREDIT IS DRAWN AGAINST WITHIN THIRTY (30) DAYS AFTER THE RESUMPTION OF BUSINESS. ALL INQUIRIES REGARDING THIS CREDIT SHOULD BE DIRECTED TO US AT OUR PHONE NUMBERS ###-###-####; (215) 973-5981; (215) 973-8157; (215) 973-1944. /s/ AUTHORIZED SIGNATURE -------------------------------------- AUTHORIZED SIGNATURE 3 CoreStates CORESTATES BANK, N.A.
DEAR BENEFICIARY: WE HEREBY AMEND OUR IRREVOCABLE STANDBY LETTER OF CREDIT AS FOLLOWS: 1) THE AMOUNT AVAILABLE IS INCREASED BY: USD49,786.50 FOR A NEW AVAILABLE BALANCE OF: USD179,786.50 EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN THIS AMENDMENT AND THE ORIGINAL LETTER OF CREDIT ARE NOW SUBJECT TO THE "UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS: (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION No. 500". ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. ALL INQUIRIES REGARDING THIS CREDIT SHOULD BE DIRECTED TO US AT OUR PHONE NUMBERS ###-###-####; (215) 973-8157; (215) 973-1944. /s/ AUTHORIZED SIGNATURE -------------------------------------- AUTHORIZED SIGNATURE
