HomeMy WebLinkAboutBy-law 4511/94 THE CORPORATION OF THE TOWN OF PICKERING
BY-LAW NO. 4511/94
Being a by-law to authorize the execution of a Road
Construction Agreement and related documentation
respecting the construction and widening of part of
Franklin Street (Claremon0 [Victorian Homes (Ontario)
Inc.; Widernan (LD 156/94, 157/94)]
WHEREAS a proposal to sever part of Lot 45 and all of Lot 46, Plan 12 (Claremont), Pickering,
[Wideman, LD 156/94 and LD 157/94], has been approved by the Durham Land Division Committee,
subject to several conditions, one of which requires the construction of a widened Franklin Street across
the frontage of the severed and retained parcels; and
X~v~-IEREAS, pursuant to the provisions of sections 263 and 284 of the Municipal Act, R.S.O. 1990,
chapter M.45, the Council of The Corporation of the Town of Pickering has jurisdiction over Franklin
Street across the frontage of the severed and retained parcels, and may, as a condition of the approval of
the severances referred to, require the entering into of a Road Construction Agreement pursuant to the
provisions of subsection 51 (6) of the Planning Act, R.S.O. 1990, chapter P. 13; and
WHEREAS, pursuant to the provision of the Municipal Act, R.S.O. 1990, chapter M.45, section 191(1)
the Council of The Corporation of the Town of Pickering may pass by-laws for acquiring any land or
interest therein for the purposes of the Corporation.
NOW THEREFORE, the Council of The Corporation of the Town of Pickering HEREBY ENACTS AS
FOLLOWS:
1. The Mayor and Clerk are hereby authorized to execute a Road Construction Agreement in the
form attached hereto as Schedule A, between Victorian Homes (Ontario) Inc. and The
Corporation of the Town of Picketing, respecting the construction of a widened Franklin Street
(Claremont) as a condition of the approval of Durham Land Division Committee Decisions LD
156/94, LD 157/94 [Wideman].
2. The Corporation of the Town of Picketing shall acquire,
(a) that part of Lot 31, Plan 12 (Claremont), Pickering, designated as Part 1, Plan 40R-
15816;
(b) that part of Lots 45 and 46, Plan 12 (Claremont), Pickering, designated as Part 2, Plan
40R-15816; and
(c) that part of Lot 46, Plan 12 (Clareraont), Pickering, designated as Part 3, Plan 40R-15816,
for road widening purposes. [(Franklin Street (Claremont)]
BY-LAW read a first, second and third time and finally passed this 17th day of October, 1994.
P,S '[13 i'd::2~,l ~ce ~ylor, Cterk
SCHEDULE
THIS ROAD CONSTRUCTION AGREEMENT made October 17, 1994, pursuant to the provisions ofsectioas
263 and 284 of the Mumcipal,4ct, R.S.O. 1990, chapter M.45, and section 51 of the Planning Act, R_S.O. 1990,
chapter P. 13,
BETWEEN:
VICTORIAN HOMES (ONTARIO} INC.,
herein called the "Company"
OF THE FIRST PART,
THE CORPORATION OF THE TOWN OF PICKERING
herein called the "Town"
OF THE SECOND PART.
WHEREAS Stephen Arthur Wideman proposes to sever part of Lot 45 and all of Lot 46, Plan 12 (Claremont),
in the Town of Picketing, in the Regional Municipality of Durham, into four building lots, and is required as a
condition of approval of the relevant land severance applications [LD 156/94 and LD 157/94] by the Durham
Land Division Committee to construct a widened Franklin Street across the fl'ontage of the severed and retained
parcels; and
WHEREAS the Company has been retained by Stephen Arthur Wideman to construct a widened Franklin Street
across the l~ontage of those parcels; and
WHEREAS the Town has jurisdiction over Franklin Street (Claremont) and, in furtherance of the severance
approvals by the Durham Land Division Committee, requires that the Company enter into this Road
Construction Agreement with the Town pursuant to sections 263 and 284 of the Mumctpal Act, R.S.O. 1990,
chapter M.45, and section 51 of the Planning ,qct, R.S.O. 1990, chapter P. 13;
NOW THEREFORE, THIS AGREEMENT WITNESSETH THAT, in consideration of the Town consenting to
the Company constructing a widened Franklin Street across the fi'ontage of those parcels, and the covenants
hereinafter expressed, and the sum of $2.00 now paid by each Party to the other (the receipt of which is hereby
acknowledged) the Panics hereto covenant and agree one with the other as follows:
PART 1 - INTERPRETING AND APPLYING THIS AGREEMENT
I. STATUS OF THIS AGREEMENT
This Agreement is entered into and executed by the Company for the purpose of having the Town act in
reliance on the covenants by the Company contained herein and the Company hereby waives any right or
claim which it now has or may hereinafter acquire which is inconsistent with the terms of this Agreement.
2. INTERPRETATION
(1) Whenever in this Agreement the pronoun "it" is used, it shall be read and construed as "he", "she",
"they", 'qfim", "her" or "them", and the number of the verb agreeing therewith shall be construed
accordingly.
(2) Schedule A attached hereto shall form pan of this Agreement.
(3) Time shall be of the essence of this Agreement.
3. BINDING PARTIES
This Agreement shall be enforceable by and against the Parties hereto, their heirs, executors,
administrators, successors and assigns, and the Agreement and all the covenants by the Company
contained herein shall nm with the Lands for the benefit of the Town and the land or interests in land
owned by the Town upon the registration of the plan.
4. NOTICE
( I ) Any notice required to be given hereunder may be given by personal delivery or registered mail,
(a) in the case of the Company, to
Karsten Smith, President
Victorian Homes (Ontario) Inc.
5012 Brock Road
Claremont, Ontario
LIY lB3
and
(b) in the case of the Town, to
The Town Clerk
The Corporation of the Town of Pickering
Picketing Civic Complex
One The Esplanade
Picketing, Ontario
LIV 6K7
(2) Each Party may redesignate the person or the address, or both, to whom or to which such notice
may be given by giving written notice to the other.
(3) Any notice given in accordance with this section shall be deemed to have been given on the
second day following the day of delivery or the day of mailing, as the case may be.
5. COMPANY'S GENERAL UNDERTAKING
The Company shah complete in a good workmanlike manner for the Town, all the municipal services as
hereinafter set forth to the satisfaction of the Town, and shall complete, perform or make payment for
such other matters as may be provided for herein.
6. COMPANY'S EXPENSE
Every provision of this Agreement by which the Company is obligated in any way shall be deemed to
include the words "at the expense of the Company and at no expense to the Town" unless the context
requires otherwise.
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PART 2 - CONSTRUCTING THE TOWN'S SERVICES
7. CONSULTING ENGINEERS
(1) The Company shall retain a Professional Engineer as the Consulting Engineer of the Company to
carry out all the necessary engineering and to supervise the work required to be done for the
construction of the project.
(2) Such Consulting Engineer, or any successor thereto, shall continue to be retained until the work
required to be done for the construction of the project is completed and formally accepted by the
Town.
(3) The Company may change fi.om one Consulting Engineer to another at any time or times during
the construction of the project, so long as the Company has a Consulting Engineer retained at all
times.
8. CONSTRUCTION / INSTALLATION OF TOWN ROADWAY AND SERVICES
(1) The Company shall obtain all required approvals and shall construct or install, or complete the
construction and installation, to Town standards and shall provide to the Town, complete in every
detail, within 14 months after the date hereof~ a roadway (herein called the "Roadway") on
Franklin Street (Claremont) from the intersection of Franklin Street and Joseph Street northerly
approximately 100 metres, as shown on plans submitted by the Company's Consulting Engineer to
the Town and approved by the Town's Director of Public Works in accordance with the Town's
specifications therefor.
(2) If at any time prior to the acceptance of the Roadway, the Town's Director of Public Works is of
the opinion that additional works ate necessary to provide adequately any of the public services
required by the project, the Company shall construct, install or perform such additional works at
the request of the Director.
(3) The Roadway shall be constructed and installed in accordance with the Town's specifications and
in a good and workmanlike manner under the supervision of the Company's Consulting Engineer
and under the observation of the Town's inspectors or, in the case of street lighting, Picketing
Hydro's inspectors.
(4) The Company shall pay to the Town the Town's costs of inspection, including but not necessarily
limited to, salaries and wages of inspectors, testing fees and administration fees, within 30 days of
invoices being rendered.
9. GENERAL KEGULATIONS KESPECTING SERVICING
(1) The construction of the Roadway shall include the construction of paved driveway approaches
between the curb and the lot line or, where no curb is to be provided, between the edge of the
road surface and the lot line.
(2) Where the construction or installation of the Roadway involves a continuation or extension of
existing services, the Company shall join into the existing services, including adjustment of grades
where necessary, in a good and workmanlike manner.
(3) The Company shall not dump nor permit to be dumped any fill or debris on, nor remove or permit
to be removed any fill from, any public lands, other than in the actual construction of the
Roadway without the written consent of the authority responsible for such lands.
(4) The Town's Director of Public Works may have qualitative or quantitative tests made of any
materials which have been or are proposed to be used in the construction or installation of any
services required by this Agreement, and the cost of such tests shall be paid by the Company
within 30 days of invoices being rendered.
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(5) The Company shall pay, within 30 days of invoices being rendered, the costs of,
(a) relocating any existing services or utilities required to be relocated by the construction or
installation of the Roadway, and
(b) moving any services or utilities installed in driveways or so close thereto, in the opinion of
the Town's Director of Public Works, as to interfere with the use of the driveway.
(6) Unless otherwise provided herein, the Company shall perform any work required to be done
under this Agreement to the specifications of the Town in effect at the date hereo£
(7) The Company shall provide and erect temporary signs of such nature and at such locations as
designated by the Town's Director of Public Works.
10. USE OF ROADWAY PENDING COMPLETION / EMERGENCY REPAIRS
(1) Any part of the Roadway may be used by the Town, or by such other person or agency as may be
authorized by the Town's Director of Public Works, for the purposes for which the Roadway is
designed, and such use shall not be deemed an acceptance of any part of the Roadway by the
Town, nor an assumption by the Town of any liability in connection therewith, nor a release of the
Company from any of its obligations under this Agreement.
(2) The Town may make emergency repairs at any time to any pact of the Roadway and such repair
shall not be deemed an acceptance of any part of the Roadway by the Town, nor an assumption
by the Town of any liability in connection therewith, nor a release of the Company ~om any of its
obligations under thi~ Agreement.
11. INTERNAL / EXTERNAL ROAD MAINTENANCE AND REPAIR / SNOW PLOWING
(1) Throughout the term of this Agreement, the Company shall,
(a) maintain all Town roads outside the project, including boulevards, in a mud and dust fxee
condition and free of obstmctinns, where the source or cause of the mud, dust or
obstruction is an operation or operations related in any way to the constmctinn of the
Roadway; and
(b) repair all Town roads outside the Roadway, including boulevards, where damage has
occurred as a result of an operation or operations related in any way to the construction of
the Roadway.
(2) The Company, within 24 hours of verbal notification by the Town to it or its representatives, shall
undertake such works as are necessary to clean, clear, repair, plow or salt any Town road
requiring such work in the opinion of the Town's Director of Public Works or his designate.
12. FAILURE TO COMPLETE / IMPROPER PERFORMANCE
(1) ~ in the opinion of the Town's Director of Public Works, the Company is not constructing or
installing the Roadway, or causing it to be constructed or installed, within the specified time or so
that it may be completed within the specified time, or is improperly performing works associated
with the construction and installation of the Roadway, or has neglected or abandoned it before
completion, or has unreasonably delayed construction and installation so that the terms and
conditions of this Agreement are being violated or executed carelessly or in bad faith, or has
neglected or refused to renew or again perform works rejected by the Director of Public Works as
defective or unsuitable, or has in any other manner, in the opinion of the Director of Public
Works, defaulted in the performance of the terms and conditions of this Agreement, then the
Director may notify the Company and its surety in writing of the default or neglect and if the
notification be without effect for seven days, then the Director shall have full authority to make
any payment or do any thing, including but not limited to obtaining materials, tools and machinery
and employing persons required for the proper completion of the Roadway or rectification of the
default~ at the cost and expense of the Company or its sureW, or both.
(2) la cases of emergency, in the opinion of the Director of Public Works, the Director may act
without prior notice but the Company and its surety shall be notified forthwith.
(3) The cost of rectifying the default shall be calculated by the Director of Public Works, whose
decision shall be final, and may be charged to the Company, together with a 25 per cent
engineering and administration fee, by drawing upon the letter of credit filed with the Town under
section 14.
13. GUARANTEE OF ROADWAY, WORKMANSHIP AND MATERIALS
(1) The Company shall guarantee all works, workmanship and materials employed or used in the
construction or installation of the Roadway and other requirements under this Agreement for a
rainlmum period of two years (the "maintenance period") following the issuance of the
Completion Acceptance Certificate by the Town.
(2) Despite any other provisions of this Agreement, the responsibilities of the Company during the
maintenance period shall include the maintenance of the Roadway, including the rectification of
any unsatisfaetorily installed works associated therewith.
(3) Prior to the end of the maintenance period, the Company's Consulting Engineer shall submit to the
Town "as built" construction drawings for the Roadway complete as per Town s~andards,
together with that Consulting Engineer's certificate that those drawings accurately depict the
Roadway as constructed.
(4) Prior to the end of the maintenance period, the Town will re-inspect the Roadway and ~
(a) the Roadway is acceptable; and
(b) the Company has performed ali of its obligations under the terms of this Agreement to the
satisfaction of the Town,
the Town will issue to the Company a Final Acceptance Certificate at which time the Town will
assume the Roadway and the maintenance thereof; and the maintenance period will then end.
(5) If upon the re-inspection conducted prior to the end of the maintenance period,
(a) the Roadway is not acceptable, or
(b) the Company has not performed all of its obligations under the terms of this Agreement to
the satisfaction of the Town,
the Town will advise the Company of the deficiencies, the expected rectifications, and the time
limited for implementing the rectifications (the "rectification period") and the maintenance period
shall be extended to the end of the rectification period.
(6) At the end of the rectification period, the Town will re-inspect the Roadway and if;
(a) the Roadway is acceptable; and
(b) the Company has performed ali of its obligations under the terms of this Agreement to the
satisfaction of the Town,
the Town will issue to the Company a Final Acceptance Certificate at which time the Town will
assume the Roadway and the maintenance thereof; and the maintenance period will then end.
(7) If upon the re-inspection conducted at the end of the rectification period,
(a) the Roadway is still not acceptable, or
(b) the Company has not performed all ofits obligations under the terms of this Agreement to
the satisfaction of the Town,
the Town's Director of Public Works shall determine, in his sole discretion, whether a further
rectification period will be granted, and, if so, upon what terms and conditions, or whether the
Town shall proceed under the provisions of section 12, or both.
14. PERFORMANCE AND MAINTENANCE SECURITY
(1) Before thi~ Agreement will be executed by the Town, the Company shall file with the Town an
irrevocable letter of credit, issued by a chartered bank in Canada in the form set out in Schedule A
and in an mount established by the Director of Public Works (the "original value"), as a
performance and maintenance security for the purpose of;
(a) guaranteeing the satisfactory construction, installation or performance of the Roadway;
(b) guaranteeing the payment of any amounts payable to the Town under this Agreement;
(c) guaranteeing the payment of any amotmt that the Town may be required to pay under the
provisions of the Conxtruction Lien Act, or any successor thereto, and
(d) guaranteeing all works, workmanah'.m and materials during the maintenance period and any
rectification period or periods and until a Final Acceptance Certificate has been issued by
the Town's Director of Public Works.
(2) The Company may, at any time after the fixst 50 per cent, in value, of works have been
constructed, installed or performed, and paid for, apply for a reduction in the security and such
application shall be made to the Town Treasurer.
(3) Upon written verification from the Director of Public Works that the construction, installation or
performance of the works for which reduction is being sought have been satisfactorily completed
and paid for, the Town Manager may reduce the amount of the security to an amount not less
(a) 60 per cent of the original value where no certificate or declaration of substantial
performance has been made;
Co) 35 per cent of the original value where,
(i) a certificate or declaration of substantial performance has been published;
(ii) 45 days following such publication have expired; and
(iii) all liens that may be claimed against any holdback required to be retained by the
Town have expired or have been satisfied, discharged or provided for by payment
into court;
and
(c) 17 per cent ofthe original value where,
(i) a certificate of final completion has been made by the Company's Consulting
Engineer;
(ii) 45 days following the making of such certificate have expired;
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(iii) all liens that may be claimed against any holdback required to be retained by the
Tow~ have expired or have been satisfied, discharged or provided for by payment
into court; and
(iv) a Completion Acceptance Certificate has been issued by the Town's Director of
Public Works,
which 17 per cent portion shall secure the guarantee of works, workmanship and
materials, until a Final Acceptance Certificate has been issued by the Town's Director of
Public Works, when the balance of the security shah be returned to the Company subject
to any deductions for rectification of deficiencies.
(4) Upon the approval, if any, of a reduction in the amount of the security required to be provided in
subsection (1), the Town Manager or the Town Treasurer shall provide to the Company any
necessary assurance to effect the reduction.
15. COMPANY'S GENERAL INDEMNITY
Until the Town's Director of Public Works has issued the Final Acceptance Certificate for the Roadway,
the Company shall indemnify the Town against all actions, causes of actions, suits, claims and demands
whatsoever, which may arise either directly or indirectly by reason of the Company undeaaking the
project as required under this Agreement.
16. OCCUPATIONAL HEALTH AND SAFET~
(1) The Company certifies that it is aware of its duties and obligations under the Occupattonal Health
attcl Safe(y Act, or any successor thereto, and all Regulations thereunder (in this section called the
"Act"), and shall ensure that its employees, contractors, subcontractors and their employees,
(a) are aware of their respective duties and obligations under the Act, and
(b) have sufficient knowledge and training to perform all works and services required
pursuant to this Agreement safely and in compliance with the Act.
(2) In the performance of all works and services required pursuant to this Agreement, the Company
shall,
(a) act safely and comply in all respects with the Act, and
Co) ensure that its employees, contractors, subcontractors and their employees act safely and
comply in all respects with the Act.
(3) The Company shall rectify any unsafe act or practice and any non-compliance with the Act
immediately upon being notified by any person of the existence of such act, practice or non-
compliance.
(4) The Company shall permit representatives of the Town on the site where any works or services
required pursuant to this Agreement are being performed at any time or times for the purpose of
inspection to deternfine compliance with this section.
(5) No act or omission by the Town or any representative of the Town (including the entering into of
this Agreement) shall be deemed to be an assumption of any of the duties or obligations of the
Company, its employees, contractors, subcontractors and their employees under the Act.
(6) In addition to the Company's general indemnification ofthe Town pursuant to section 15, above,
the Company shall indemnify and save harm/ess the Town,
(a) from any loss, inconvenience, damage or cost to the Town which may result fi.om the
Company or any of its employees, contractors, subcontractors and their employees failing
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to act safely or to comply in all respects with the Act in the performance of any work or
service required pursuant to this Agreement; and
(b) against any action or claim, or costs related thereto, brought against the Town by any
person arising out of any unsafe act or practice or any non-compliance with the Act by the
Company or any of its employees, contractors, subcontractors and their employees in the
performance of any work or service required pursuant to this Agreement.
17. LIABILITY INSURANCE POLICY / PROVISION FOR DEDUCTIBLE
(1) Before this Agreement will be executed by the Town, the Company shall file with the Town a
Certificate of Insurance verifying that a Liability Insurance Policy is in effect, setting out the
essential terms and conditions of the insurance, and naming the Town as additional named
insured, all of which shall be subject to the approval of the Town Solicitor.
(2) The policy shall comply with the following provisions:
(a) the minimum limit per occurrence shall be $5,000,000 all inclusive for property damage
and personal liability;
(b) it shall not contain a clause for exclusion for blasting; and
(c) it may not be cancelled unless prior notice by registered letter has been given to the Town
by the insurer thirty days in advance of the expiry date.
(3) The policy premium must be paid initially for a period of one year and the policy shall be renewed
for further one year periods until the Final Acceptance Certificate has been issued by the Town's
Director of Public Works.
(4) If the policy coverage is subject to a deductible amount, the Company shall file with the Town,
when filing the Certificate of Insurance, a certified cheque or letter of credit with the Town in the
deductible amount, as a deposit, together with a letter bom the Company authorizing the Town to
appoint an independent adjuster and to investigate el,sling less than the deduct~le amount and
authorizing the Town to pay such claims deemed valid by the adjuster out of the deposit; the
Company shall be responsible for all adjustment service costs and shall maintain the deposit
throughout the term of this agreement in the amount of the deductible.
(5) The provision of the insurance policy required by this section shall not relieve the Company from
liability for claimg not covered by the policy or which exceed its limits, if any, for which the
Company may be held responsible.
PART 3 - FINANCIAL MATYERS
lg. EXPIRY OF SECURITIES
(1) Should any letter of credit security required to be provided hereunder expire before the Town
releases the Company from the terms and conditions hereof; the Company shall provide to the
Town at least 30 days in advance of the expiry date of that security, a further security to take
effect upon the expiry.
(2) Such further security shall be in a form and amount satisfactory to the Town.
(3) Should no such timber security be provided as required, then the Town shall have the right to
convert the expiring security into cash and hold the cash in lieu of and for the same purposes as
the expiring security.
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19. PAYMENT OF LIENS AND OTHER CLAIMS
(I) The Company shall discharge or vacate any fiens or claims filed with the Town or registered on
title to any Town-owned lands within thirty days of being requested to do so by the Town.
(2) At the end of the maintenance period, as extended during any rectification period, the Company
shall file with the Town a Statutory Declaration stating that,
(a) all materials have been supplied and all services and works have been completed in the
project with respect to the construction and installation of works and other services;
(b) all accounts for work or service performed and materials placed or furnished upon or in
respect of the construction and installation of works and other services in the project have
been fully paid and satisfied and no person is entitled to claim a lien under the
Construction Lien Act against the Town or any Town-owned land;
(c) there are no judgments or executions filed against the Company;
(d) nothing is owed by the Company or claimed against it for unemployment insurance
deductions, income tax deductions, or by way of contribution or assessment under the
Workers' Compensation Act;
(e) the Company has not made any assignment for the benefit of creditors, nor has any
receiving order been made against it under the Bankruptcy Act, nor has any petition for
such an order been served upon the Company; and
(0 45 days have passed since the completion of the construction, installation, and last
rectification of the works and services.
20. PAYMENT OF INTEREST ON OVERDUE AMOUNTS PAYABLE
The Company shall pay interest at the rate of 18 per cent per year to the Town on all sums of money
payable hereunder which are not paid on the due dates calculated from suck due dates.
21. PAYMENT OF LEGAL FEES
Before this Agreement will be executed by the Town, the Company shall pay by certified cheque to the
Town a Road Construction Agreement processing fee in the amount of $535 [$500 fee plus $35 GST]
for the preparation and processing of this Agreement by the Town's Legal Services Department.
PART 5 - TRANSFERS AND REGISTRATIONS
22. TRANSFERS OF LANDS OR INTERESTS IN LANDS OR PAYMENTS IN LIEU THEREOF
(1) Upon executing this Agreement, the Company shall convey or cause to be conveyed to the Town,
f~ee and clear of all encumbrances and at no cost to the Town, all of;
(a) that part of Lot 31, Plan 12 (Claremont), Pickering, designated as Part 1, Plan 40R-15816;
and
(b) that part of Lots 45 and 46, Plan 12 (Claremont), Picketing, designated as Part 2, Plan
40R-15816; and
(c) that part of Lot 46, Plan 12 (Claremont), Pickering, designated as Part 3, Plan 40R-15816,
for road widening purposes.
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(2) The Company hereby warrants that, upon such conveyance, neither the title to the lands conveyed
nor their physical state and condition shall prevent the Town fi.om lawfully or physically using the
lands for the purposes for which they are being conveyed.
(3) Any Transfer/Deed given pursuant to this Agreement shall be in a form acceptable to the Town
Solicitor.
IN WITNESS WHEREOF the Parties hereto have hereunto affixed their respective Corporate Seals atlested to
by the hands of their authorized officers.
SIGNED, SEALED AND DELIVERED
VICTORIAN HOMES (ONTARIO) INC.
Karsten Smith, President
I have authority to bind the Company.
THE CORPORATION OF THE TOWN OF PICKERING
Wayne Arthurs, Mayor
Bruce Taylor, Clerk
W3136
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SCHEDULE A
REQUIRED FORM FOR PERFORMANCE AND MAINTENANCE SECURITY LETTER OF CREDIT
(Section 14)
To: The Corporation of the Town of Picketing
Picketing Civic Centre
One The Esplanade
Pickering, Ontario
L1V 6K7
We hereby authorize you to draw on [name of bank], [address of bank], for account of [name of company or
companies obtaining securityI up to an aggregate amount of [amount of security in figures and in full[
available by drafts at sight for 100% ofdenmnd as follows:
Pursuant to the request of our customers(s), the said [name of company or companies obtaining security], we
[name of bankl, laddress of bankl, hereby establish and give to you an irrevocable Letter of Credit in your
favour in the total amount of [amount of security in numbers and in words[ which may be drawn on by you at
any time and fi-om time to time upon written demand for payment made upon us by you which demand we shall
honour without enquiring whether you have a right as between yourself and our said customer(s or any of them)
to make such demand, and without recognizing any claim of our said custome~(s or any of them).
P~ovided, however, that you are to deliver to lname of bank], [address of bank[, at such time as a written
demand for payment is made upon us a certificate signed by you agreeing or confirming that monies drawn
pursuant to this Letter of Credit are payable to you or are to be or have been expended pursuant to obligations
incurred or to be incurred by you with reference to your file regarding a Road Construction Agreement dated
October 17, 1994, between Victorian Homes (Ontario) Inc. and The Corporation of the Town of Picketing; this
Letter of Credit is given as the Performance and Maintenance Security required by section 14 of that Agreement.
Partial drawings are permitted.
The amount of this Letter of Credit shall be reduced fi-om time to time as advised by notice in writing given to us
fi-om time to time by you.
This Letter of Credit will continue up to and including [date of expiry of Letter of Credit[ and will expire on
that date and you may call for payment of the full amount outstanding under this Letter of Credit at any time up
to the close of business on that date. It is a condition of this Letter of Credit that it shall be deemed to be
automatically extended for one year fi.om the present or any future expiration date hereof~ unless thirty days prior
to any such date, we shall notify you in writing by registered nmi[ that we elect not to consider this Letter of
Credit renewed for any such additional period.
We hereby covenant with drawers, endorsers, and bona fide holders of drafts drawn under and in accordance
with the terms of this credit that such drafts will be duly hunoured if drawn and negotiated on or before [date of
expiry of Letter of Creditl.
The drafts drawn under this credit are to be endorsed hereon and shall state on their face that they are drawn
under [name of bankI, [address of bankI.
DATED this day of ~ 1994.
Instructions for completing, Letter of Credit:
I. Letter of Credit must be typed on bank lenerhead
2. Information required in square brackets must be provided where indicated, without brackets.
3. Phrases shown in round brackets must be included without brackets where there are two or more companies comprising the
customer.
4. The date in the sixth paragraph must be at least one year from the date of the Lener of Credit.
5. The date in the seventh paragraph must be the same as the dale in the sixth paragraph.
6. Bank signatories must show name, printed or typed, and title, in addition to signature.
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