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the fifth successive Letter of Credit on or before August 29, <br />1986. <br /> <br /> 4. The parties acknowledge that the proceeds of the <br />Bonds include $37,500.00 to defray the costs of the Owner in <br />obtaining the original Letter of Credit and the renewal Letters <br />of Credit. This amount was computed on the basis of an <br />estimated fee of $7,500.00 per year (representing one and one <br />half percent (1-1/2%) of the face amount of the Letter of <br />Credit) for five years. <br /> <br /> On receipt by the City of the original Letter of <br />Credit, the City will disburse to the Owner from the proceeds of <br />the Bonds the amount of $7,500.00. On receipt of each renewal <br />Letter of Credit, the City will similarly disburse an additional <br />$7,500.00 to the Owner. If the Owner must pay more than <br />$7,500.00 to the Bank for issuance of any Letter of Credit, the <br />additional amount shall be the sole obligation of Owner and <br />shall not be paid from the proceeds of the Bonds. <br /> <br /> 5. If the City has not received a renewal Letter of <br />Credit not later than thirty (30) days before expiration of the <br />current Letter of Credit, then on submission of a certificate <br />substantially in the form set forth in Part B of the Letter of <br />Credit, the Bank shall pay to the City the amount of <br />$350,000.00, less the total amount then outstanding against the <br />Letter of Credit, if any, pursuant to paragraph 6. The City <br />shall have no obligation to inquire why the renewal Letter of <br />Credit has not been presented, and shall be entitled to request <br />and to receive funds pursuant to this paragraph regardless of <br /> <br />4 <br /> <br /> <br />