Irrevocable Letter of Credit No. 155 between Firstrust Bank and Commonwealth of Pennsylvania for ATX Telecommunications
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Summary
Firstrust Bank issued an irrevocable letter of credit for $122,000 in favor of the Commonwealth of Pennsylvania, with Michael A. Karp (doing business as ATX Telecommunications) as the applicant. The letter of credit guarantees payment to the Commonwealth if ATX Telecommunications fails to pay sums due under a final court order. The letter of credit automatically renews annually unless Firstrust Bank gives notice of non-renewal and remains in effect during ongoing litigation involving ATX Telecommunications, including any appeals. It can be returned once the litigation concludes, following a court motion and notification to the Attorney General.
EX-10.13 22 ex10-13.txt LETTER OF CREDIT 1 Exhibit 10.13 FIRSTRUST BANK Direct Dial#: (610) 238-5018 Irrevocable Letter of Credit No. 155 Issue Date: October 19, 1999 Expiration Date: October 19, 2000 Amount: $122,000.00
We hereby establish this Irrevocable Letter of Credit No. 155 in favor of the aforesaid addressee ("Beneficiary") for drawings up to United States One Hundred Twenty-Two Thousand and 00/100 (U.S. $122,000.00) Dollars effective immediately. This Letter of Credit is issued, presentable and payable at our office at Firstrust Savings Bank, 15 East Ridge Pike, Fourth Floor, Conshohocken, Pennsylvania, 19428, and expires with our close of business on October 19, 2000. 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 promptly honor your sight draft(s) drawn on us accompanied by an Affidavit signed by the Prothonotary or other duly authorized officer of Commonwealth Court, such that Applicant has failed to pay within ten (10) days such sums of money due and owing pursuant to a final, non-appealable Order of the Commonwealth Court and referencing our Letter of Credit No. 155, for all or any part of this Credit if presented at our office specified in the first paragraph hereof on or before the expiry date or any automatically extended expiry date. Except as expressly stated herein, this undertaking is not subject to any agreement, condition or qualification. The obligations of Firstrust Savings Bank under this Letter of Credit is the individual obligation of Firstrust Savings Bank and is in no way contingent upon reimbursement with respect thereto. It is a condition of this Letter of Credit that it is deemed to be automatically extended without amendment for one year from the expiry date hereof, or any future expiration date, unless thirty (30) days prior to any expiration date, we notify you by registered mail that we elect not to consider this Letter of Credit renewed for any such additional period. This Letter of Credit is subject to and governed by the laws of the Commonwealth of Pennsylvania and the 1983 revision of the Uniform Customs and Practice for 2 Letter of Credit No. 155 Page Two Documentary Credits of the International Chamber of Commerce (publication no. 400) and, in the event of any conflict, the Laws of the Commonwealth of Pennsylvania will control. If this Letter of Credit expires during an interruption of business as described in Article 19 of said Publication No. 400, the bank hereby specifically agrees to effect payment if this Letter of Credit is drawn against within thirty (30) days after the resumption of business. Very truly yours,
3 FIRSTRUST BANK AMENDMENT TO IRREVOCABLE LETTER OF CREDIT NUMBER 155
WE HEREBY AMEND THE ABOVE REFERENCED IRREVOCABLE LETTER OF CREDIT AS FOLLOWS: It is a condition of this Letter of Credit that it shall continue automatically during the pendency of the case of Michael Karp, Thomas Gravina and Debra Buruchian t/a ATX Telecommunications Services, Ltd., No. 426 F&R 1999. The pendency of this litigation shall be deemed to include appeals beyond Commonwealth Court. Once the above captioned case has been terminated, either through settlement, unappealed litigation or otherwise, the Letter of Credit may be returned through the filing of a motion with the Commonwealth Court and noticed to the Tax Litigation Section of the Office of Attorney General.
