In our local area, subdivision regulations require the posting of a letter of credit or other security in favor of the Area Plan Commission to ensure that the developer constructs infrastructure improvements as designed. In a case in which the Bamberger firm represented the lender, the Court of Appeals struck down the attempt of a party standing in the shoes of an unpaid contractor to reach the letter of credit proceeds. The Court found that since the contractor was not a named beneficiary in the letter of credit, it had no rights to obtain these funds. The Court further found that the named beneficiary of the letter of credit, the Area Plan Commission, was the only party entitled to draw on the letters. (more…)
Posts Tagged ‘subdivision’
Court of Appeals Rules That Contractor Cannot Reach Letter of Credit Proceeds
Tuesday, October 5th, 2010Vacation of Public Rights-of-Way
Thursday, August 26th, 2010In rural areas and in older subdivisions, it is common to find streets, roads or alleys which were never developed or are no longer used or maintained as public ways by the local governmental authorities. Frequently, these areas are mowed or used by adjoining landowners as a part of that landowner’s property without knowledge that once a strip becomes a public way, it remains a public way until the appropriate local governmental authority follows the required statutory procedure to vacate the road. In rural areas, the County Commissioners have the authority to vacate public ways. In incorporated cities and towns, the authority to vacate public ways lies with the city council or town board. (more…)