Schmidt-Tiago Construction Co. v. City of Colorado Springs

Opinion by JUDGE PIERCE This action involves the scope of five irrevocable letters of credit issued by the Exchange National Bank to the City of Colorado Springs. We affirm the judgment of the trial court. The Colorado Springs City Code § 13-22 provides that the City may obtain letters of credit to guarantee that municipal improvements will be made by the developers of subdivisions. Pursuant to this ordinance, the City received five letters of credit issued by the Exchange National Bank allowing it to present drafts for the completion of street grading, drainage, sidewalk, endcurb and gutters within a subdivision being developed by Allan D. Miller and others. The specified work was completed by Miller and his associates and no drafts were submitted to the Bank by the City within the time period set forth in the letters of credit.