Document:

exv10w20

 

Exhibit 10.20

Southwest Georgia Farm Credit

 

www.swgafarmcredit.com

November 30, 2006

Irrevocable Letter of Credit No. 050-011-574509-02

Wells Fargo Bank, National Association

Corporate Trust Department

1300 SW Fifth Avenue, 11th Floor

MAC P6101-114

Portland, Oregon 97201

TO: Wells Fargo Bank, N.A., as Trustee

1. For the account of First United Ethanol, LLC, a Georgia limited liability company (the
“Company”), we hereby authorize you to draw on us at sight, as hereinafter provided, an amount not
exceeding $29,866,028 (such amount, as reduced from time to time pursuant to paragraph 6 below and
as reinstated from time to time pursuant to paragraphs 10 and 11 below, being herein called the
“Stated Amount”).

2. This Letter of Credit is irrevocable and is issued to you, as trustee under the Trust Indenture
dated as of October 1, 2006 (the “Indenture”), between you and the Mitchell County Development
Authority (the “Issuer”), pursuant to which Indenture up to $29,000,000 in aggregate principal
amount of the Issuer’s Variable Rate Demand Tax-Exempt Economic Development Revenue Bonds, Series
2006 (First United Ethanol, LLC Project) (the “Bonds”) are being issued. This Letter of Credit is
issued pursuant to a Reimbursement Agreement dated as of November 30, 2006 (the “Reimbursement
Agreement”) between us and the Company. Subject to paragraph 20 hereof, capitalized terms used
herein without definition shall have the respective meanings assigned to them in the Indenture.

3. Of the Stated Amount, up to $29,000,000, which is an amount equal to the principal amount of the
Bonds (the “Principal Portion”) may be drawn with respect to payment of the unpaid principal amount
of the Bonds, or payment of the principal portion of the purchase price of Bonds tendered (or
deemed tendered) to you for purchase in accordance with the optional or mandatory tender provisions
of the Indenture (“Tendered Bonds”), and up to $866,028, which is an amount equal to interest on
the Bonds at the rate of 10% per annum for a period of 109 days, computed on the basis of a
365/366-day year (the “Interest Portion”), may be drawn with respect to payment of unpaid interest
on the Bonds, or payment of the interest portion of the purchase price of Tendered Bonds. This
Letter of Credit does not apply to any interest that may accrue on the Bonds after the Bonds become
due (whether by maturity, redemption, acceleration or otherwise), or to any premium due upon
redemption of Bonds, or to the principal of or interest or

Annex Office

411 West Broughton Street - Bainbridge, Georgia 39817 — P. O. Box 816 — Bainbridge, Georgia 39818

Telephone (229) 248-0049 - Toll-free (800) 844-2709 - Fax (229) 248-0054

 

 

redemption premium on any Pledged Bonds
or if the Bonds have been converted and are no longer in a Variable Rate Period.

4. Funds under this Letter of Credit are available to you against your sight draft(s), drawn on us,
stating on their face: “Drawn under Southwest Georgia Farm Credit, ACC Irrevocable Letter of
Credit No. 050-011-574509-02”, a form of which is attached hereto as Appendix G, accompanied by
your written certificate signed by your authorized officer, appropriately completed, in the form of
appendix A, B or C hereto, as indicated below. Presentation of such drafts and certificates shall
be made at our office located at:

Southwest Georgia Farm Credit, ACA

411 West Broughton Street

Bainbridge, Georgia 39818

Attention: Ted Murkerson

or at any other office which may be designated by us by written notice delivered to you (the office
address specified above and any other office so designated by us being herein called our
(“Principal Office”). We hereby agree that each draft drawn under and in compliance with the terms
o this Letter of Credit will be duly honored by us with our own funds upon due delivery of the
certificates, as specified below, if presented at our Principal Office on or before the expiration
date hereof.

5. If a drawing is made by you hereunder at or prior to 10:00 a.m. (Eastern time) on a Business
Day, and provided that the documents so presented conform to the terms and conditions hereof,
payment shall be made to you, or to our designee, of the amount specified, in immediately available
funds, not later than 3:00 p.m. (Eastern time) on the same Business Day. If a drawing if made by
you hereunder after 10:00 a.m. (Eastern time) on a Business Day, and provided that the documents so
presented conform to the terms and conditions hereof, payment shall be made to you, or to your
designee, of the amount specified, in immediately available funds, not later than 3:00 p.m.
(Eastern time) on the next succeeding Business Day. Payment under this Letter of Credit may be
made by deposit of immediately available funds into a designated account that you maintain with us.
As used herein “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions in the city where our Principal Office is located are authorized or required
by law to close or a day on which the payment system of the Federal Reserve is not operational.

6. Multiple drawings may be made hereunder, provided that drawings honored by us hereunder shall
not, in the aggregate, exceed the Stated Amount. The Stated Amount shall be reduced as follows:

     (a) Payment by us of drawings with respect to principal due upon maturity, redemption or
acceleration of the Bonds shall pro tanto reduce the Principal Portion of the Stated Amount,
without reinstatement.

     (b) Payment by us of drawings with respect to interest due on the Bonds shall

 

 

pro tanto reduce
the Interest Portion of the Stated Amount, subject to reinstatement as provided in paragraph 10
below.

     (c) Payment by us of drawings with respect to the purchase of Tendered Bonds shall prop tanto
reduce the Principal Portion of the Stated Amount to the extent of the principal portion of the
purchase price so drawn, and shall pro tanto reduce the Interest Portion of the Stated Amount to
the extent of the interest portion of the purchase price so drawn, in each case subject to
reinstatement as provided in paragraph 11 below.

     (d) At any time after the principal amount of the Bonds outstanding is reduced as a result of
payment of the principal of Bonds due upon maturity or redemption, the Interest Portion of the
Stated Amount shall be reduced to the maximum amount of interest that would be payable on the Bonds
then outstanding for a period of 109 days at the rate of 10% per annum, computed on the basis of a
365/366-day year (the “Maximum Interest coverage”). The Interest Portion of the Stated Amount
shall not thereafter be increased or reinstated to an amount in excess of such Maximum Interest
Coverage. If, on the date of such reduction the Interest Portion of the Stated Amount then
available for drawing hereunder is less than the Maximum Interest Coverage (as a result of draws
against the Interest Portion for which no reinstatement has become effective), the Interest Portion
shall not thereafter be increased or reinstated to an amount greater than the Maximum Interest
Coverage. You will notify us from time to time of changes in the Maximum Interest Coverage.

7. For drawings under the Principal Portion to pay principal of the Bonds due upon maturity,
redemption or acceleration, our drafts must be accompanied by your written certificate in the form
of Appendix A signed by your authorized officer and appropriately completed (an “A Drawing”).

8. For drawings under the Interest Portion to pay the interest on the Bonds, your drafts must be
accompanied by your written certificate in the form of Appendix signed by your authorized officer
and appropriately completed (a “B Drawing”).

9. For drawings under the Principal Portion and (if applicable) the Interest Portion to pay the
purchase price of Tendered Bonds, your drafts must be accompanied by your written certificate in
the form of Appendix C signed by your authorized officer and appropriately completed (a “C
Drawing”).

10. At the close of business on the 10th day following payment by us of any B Drawing
hereunder, the Interest Portion of the Stated Amount will be automatically reinstated by the amount
of such B Drawing unless prior to the close of business on the 10th day following
payment of such B Drawing you shall receive written notice from us that the Interest Portion has
not been reinstated or that any “Event of Default” as defined in the Reimbursement Agreement has
occurred and is continuing; provided, however, that the Interest Portion shall never be reinstated
to an amount in excess of the Maximum Interest Coverage, as certified in the most recent notice
with respect to Maximum Interest Coverage received by us pursuant to paragraph 6 above.

 

 

11. Upon receipt by us of reimbursement in full of amounts due to us because of a C Drawing with
respect to any Tendered Bonds, we shall promptly notify you that we have been so reimbursed and
that the Stated Amount has been reinstated by the amount of the C Drawing with
respect to such Tendered Bonds (such notice is herein called a “Reimbursement Notice” and shall be
in the form of appendix D), whereupon (i) the Principal Portion shall be reinstated by the amount
of the principal portion of the purchase price of such Tendered Bond or Bonds, which shall be
designated in our Reimbursement Notice to you, and (ii) the Interest Portion shall be reinstated by
the amount of the interest portion of the purchase price of such Tendered Bond or Bonds, which
shall be designated in our Reimbursement Notice to you; provided, however, that the Interest
Portion shall never be reinstated to an amount in excess of the Maximum Interest Coverage, as
certified in the most recent notice with respect to Maximum Interest Coverage received by us
pursuant to paragraph 6 above. If we receive reimbursement for the purchase price of less than all
Bonds with respect to which a C Drawing has been made, our Reimbursement Notice shall designate the
aggregate principal amount of, and certificate numbers (if applicable), of Bonds with respect to
which we have been reimbursed. Bonds with respect to which you receive a Reimbursement Notice from
us, as provided in this paragraph, shall no longer be considered “Pledged Bonds” for purposes of
the Indenture and the Reimbursement Agreement.

12. Reductions of the Stated Amount provided for in paragraph 6 above shall reduce the amounts
which you may draw hereunder notwithstanding:

     (a) The fact that such reduction is the result of a payment under this Letter of Credit
against presentation of a sight draft or certificate which does not substantially comply with the
terms of this Letter of Credit, including without limitation (i) the fact that any draft or
certificate presented upon this Letter of Credit (or any endorsement thereon) proves to be forged,
fraudulent, invalid, unenforceable or insufficient in any respect or any statement therein is
inaccurate in any respect whatever or (ii) the failure of any document to bear reference, or to
bear adequate reference, to this Letter of Credit;

     (b) The use to which this Letter of Credit may be put or any acts or omissions of the Trustee
in connection therewith; or

     (c) Any other circumstances or happening whatsoever, whether or not similar to any of the
foregoing, in making payment under this Letter of Credit; provided that such payment shall not
constitute gross negligence or willful misconduct by us. In furtherance and not in limitation of
the foregoing, we may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary.

13. Only you, as trustee under the Indenture, may make a drawing under this Letter of Credit. Upon
the payment to you or your account of the amount specified in sight drafts drawn hereunder, we
shall be fully discharged of our obligation under this Letter of Credit with respect to such sight
drafts and we shall not thereafter be obligated to make

 

 

any further payments under this Letter of
Credit in respect of such sight drafts to you or any other person who may have made or makes a
demand for payment of principal or interest with respect to any Bond.

14. This Letter of Credit shall be effective immediately and shall automatically terminate upon the
earliest of:

(a) the making by you of the final drawing available to be made hereunder,

(b) our receipt of a certificate in the form of Appendix E hereto appropriately completed
and purportedly signed by your duly authorized officer,

(c) 15 days after receipt by you of written notice from us that an “Event of Default”, as
defined in the Reimbursement Agreement, has occurred and is continuing,

(d) 15 days after receipt by you of written notice from us that the Interest Portion will
not be reinstated pursuant to the provisions hereof,

(e) the date on which the principal amount of and interest on the Bonds shall have been paid
in full,

(f) the close of business on the fifth calendar day following any Conversion Date (as
defined in the Indenture),

(g) the date on which we honor the draft drawn hereunder pursuant to Section 9.02 of the
Indenture following the occurrence of an Event of Default and acceleration under the
Indenture, or

(h) our close of business on November 30, 2007 (the “Initial Expiry Date”) provided however,
such expiration date shall be automatically extended for up to six (6) one-year periods
unless at least 60 days prior to the Initial Expiry Date, or at least 60 days prior to any
succeeding anniversary of the Initial Expiry Date, we provide written notice to you that the
expiration date shall not be extended, in which event this Letter of Credit shall expire on
the Initial Expiry Date or the next succeeding anniversary thereof. Notwithstanding the
foregoing, in no event shall the expiration date extend beyond November 30, 2013. The
giving of such notice shall be within our sole and absolute discretion.

Upon the expiration of this Letter of Credit you shall immediately deliver the same to us for
cancellation.

15. You may transfer your rights in their entirety (but not in part) to any transferee who has
succeeded you as trustee under the indenture, and such transferred rights may be successively
transferred. Such transfer shall be effected upon the presentation to us of this Letter of Credit
accompanied by a transfer letter in the form attached hereto as Appendix F. Upon presentation of
such documents to us, we shall forthwith issue an

 

 

irrevocable Letter of Credit to your transferee
with provisions consistent with this Letter of Credit.

16. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce, Publication No. 500 (the “Uniform Customs”) except
that Article 13(b) and Article 17 of the Uniform Customs shall not be included in this reference to
the Uniform Customs and shall not apply hereto. This Letter of Credit shall be deemed to be a
contract made under the laws of the State of Georgia and shall, as to matters
not governed by the Uniform Customs, be governed by and construed in accordance with the laws of
such State.

17. All documents, notices and other communications (hereinafter “documents”) provided or permitted
by this Letter of Credit to be given or presented to us shall be delivered to us at our Principal
Office. For purposes of this Letter of Credit, a document shall be “presented” or a
“presentation” of a document shall be made in accordance with the terms hereof only when such
document is actually received by our International Department at our Principal Office.

18. All documents, notices and other communications provided or permitted by this Letter of Credit
to be given or presented to you shall be delivered to you at Wells Fargo Bank, N.A., Corporate
Trust Department, 1300 SW Fifth Avenue, 11th Floor, MAC P6101-114, Portland, Oregon
97201 or at any other address which may be designated by you by written notice delivered to us.

19. Anything herein to the contrary notwithstanding, we shall give you notice within 10 days after
any B Drawing hereunder if any Interest Portion has not been reinstated.

20. This Letter of Credit sets forth in full our undertaking, and such undertaking shall not in any
way be modified, amended, amplified or limited by reference to any document, instrument or
agreement referred to herein (including, without limitation, the Bonds), except only the
certificates and the sight drafts referred to herein; and any such reference shall not be deemed to
incorporate herein by reference any document, instrument or agreement except for such certificates
and such sight drafts.

Yours very truly,

Southwest Georgia Farm Credit, ACA

	 	 	 	 	 	 	 
	By:	 	     /s/ Ted R. Murkerson	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Ted R. Murkerson	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	Capital Markets Administrator	 	 

 

 

APPENDIX A

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Certificate for A Drawing

Wells Fargo Bank, N.A., as trustee (the “Trustee”), hereby certifies to Southwest Georgia Farm
Credit, ACA (the “Credit Provider”), with reference to Irrevocable Letter of Credit No.                     
(the “Letter of Credit”; capitalized terms not otherwise defined herein shall have the meaning
assigned to such terms in the Letter of Credit) issued by the Credit Provider in favor of the
Trustee, that:

(1) The Trustee is the trustee under the Indenture.

(2) The Trustee is making a drawing under the Principal Portion of the Letter of Credit in the
amount of $                                          to be applied directly to the payment of unpaid
principal on the Bonds due upon maturity, redemption or acceleration. Such amount (a) is due and
payable with respect to the principal of the Bonds, or (b) will be due and payable on the date that
the Credit Provider is required to pay the draft(s) accompanying this certificate, or (c) will be
used on the date of payment by you to establish a trust pursuant to Article [          ] of the
Indenture to cause the Bonds to be deemed to be “Fully Paid” under the Indenture.

(3) The aggregate amount of the sight draft(s) accompanying this certificate that is allocable to
the payment of principal of the Bonds does not exceed the amount available on the date hereof to be
drawn under the Principal Portion of the Letter of Credit.

(4) As a result of this drawing, the Maximum Interest Coverage is now $                                        .

IN WITNESS WHEREOF, the Trustee has caused this certificate to be executed and delivered by its
duly authorized officer on this                      day of                                         , ___.

	 	 	 	 	 
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

APPENDIX B

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Certificate for B Drawing

Wells Fargo Bank, N.A., as trustee (the “Trustee”), hereby certifies to Southwest Georgia Farm
Credit, ACA (the “Credit Provider”), with reference to Irrevocable Letter of Credit No.                                         
(the “Letter of Credit”; capitalized terms not otherwise defined herein
shall have the meaning assigned to such terms in the Letter of Credit) issued by the Credit
Provider in favor of the Trustee, that:

(1) The Trustee is the trustee under the Indenture.

(2) The Trustee is making a drawing under the Interest Portion of the Letter of Credit in the
amount of $                                         to be applied directly to the payment of unpaid interest on the Bonds.
Such amount (a) is due and payable with respect to interest on the Bonds, or (b) will be due and
payable on the Bond Payment Date next succeeding the date that the Credit Provider is required to
pay the draft(s) accompanying this certificate, or (c) will be used on the date of payment by you
to establish a trust pursuant to Article XVI of the Indenture to cause the Bonds to be deemed to be
“Fully Paid” under the Indenture.

(3) The aggregate amount of the sight draft(s) accompanying this certificate does not exceed the
amount available on the date hereof to be drawn under the Interest Portion of the Letter of Credit.

IN WITNESS WHEREOF, the Trustee has caused this certificate to be executed and delivered by its
duly authorized officer on this ___day of                                         , ___.

	 	 	 	 	 
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

APPENDIX C

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Certificate for C Drawing

Wells Fargo Bank, N.A., as trustee (the “Trustee”), hereby certifies to Southwest Georgia Farm
Credit, ACA (the “Credit Provider”), with respect to Irrevocable Letter of Credit No.                                         
(the “Letter of Credit”; capitalized terms not otherwise defined herein shall have the meaning
assigned to such terms in the Letter of Credit) issued by the Credit Provider in favor of the
Trustee, that:

(1) The Trustee is the trustee under the Indenture.

(2) The Trustee is making a drawing under the Letter of Credit in the amount of $                                         to
be used to pay directly the purchase price of Tendered Bonds. Of the aggregate amount drawn,
$                                         is drawn under the Interest Portion of the Letter of Credit to pay the interest
portion of such purchase price and $                                         is drawn under the Principal Portion of the
Letter of Credit to pay the principal portion of such purchase price. The aggregate amount so
drawn is due and payable with respect to the purchase price of Tendered Bonds, or will be due and
payable on the date that the Credit Provider is required to pay the draft(s) accompanying this
certificate.

(3) The aggregate amount of the sight draft(s) accompanying this certificate does not exceed the
amount available on the date hereof to be drawn under the Letter of Credit; the amount designated
above as drawn against the Interest Portion does not exceed the amount available on the date hereof
to be drawn under the Interest Portion of the Letter of Credit; and the amount designated above as
drawn against the Principal Portion does not exceed the amount available on the date hereof to be
drawn under the Principal Portion of the Letter of Credit.

     (4) This C Drawing is being made to pay the purchase price of the following Tendered Bonds:

Certificate Number

	 	 	 
	(if applicable)	 	Principal Amount
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

Total       $                    

 

 

IN WITNESS WHEREOF, the Trustee has caused this certificate to be executed and delivered by its
duly authorized officer on this ___day of                     , ___.

	 	 	 	 	 	 	 
	as Trustee	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

APPENDIX D

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Reimbursement Notice

Wells Fargo Bank, N.A., as trustee (the “Trustee”), with respect to Irrevocable Letter of Credit
No.                                          (the “Letter of Credit”; capitalized terms not otherwise defined herein shall
have the meaning assigned to such terms in the Letter of Credit) issued by the Credit Provider in
favor of the Trustee, that:

(1) The Credit Provider has received reimbursement of amounts due to us because of a C Drawing with
respect to the following Tendered Bonds:

Certificate Number

	 	 	 
	(if applicable)	 	Principal Amount
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

Total       $                    

(2) The Principal Portion shall be reinstated by $                                        , which was the amount of the
principal portion of the purchase price of the Tendered Bonds referred to in paragraph (1) above.

(3) The Interest Portion shall be reinstated by $                                        , which was the amount of the interest
portion of the purchase price of the Tendered Bonds referred to in paragraph (1) above.

IN WITNESS WHEREOF, the Credit Provider has caused this certificate to be executed and delivered by
its duly authorized officer on this ___day of                                         , ___.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	, as Trustee
	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

APPENDIX E

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Certificate for Cancellation

Wells Fargo Bank, N.A., as trustee (the “Trustee”), hereby certifies to Southwest Georgia Farm
Credit, ACA, with respect to Irrevocable Letter of Credit No.                      (the “Letter of
Credit”), capitalized terms not otherwise defined herein shall have the meaning assigned to such
terms in the Letter of Credit) issued by the Credit Provider in favor of the Trustee, that:

(1) The Trustee is the trustee under the Indenture.

(2) The Letter of Credit is hereby delivered to the Credit Provider for cancellation because:

(a) the Bonds have been Fully Paid, or provision for such payment has been made, in accordance with
the terms of Article [ ___] of the Indenture; or

(b) the terms and conditions of the Indenture for the acceptance by the Trustee of a Substitute
Letter of Credit and the cancellation of the Letter of Credit have been satisfied.

IN WITNESS WHEREOF, the Trustee has caused this certificate to be executed and delivered by its
duly authorized officer on this ___day of                                         , ___.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	, as Trustee
	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

APPENDIX F

TO

SOUTHWEST GEORGIA FARM CREDIT, ACA

IRREVOCABLE LETTER OF CREDIT NO.                     

Transfer Letter

Southwest Georgia Farm Credit, ACA

Attn:                                                            

Date:                                                            

Gentlemen:

With reference to your Irrevocable Letter of Credit No.                      (the “Letter of Credit”;
capitalized terms not otherwise defined herein shall have the meaning assigned to such terms in the
Letter of Credit), we hereby transfer to                                                              all right, title and
interest of the undersigned in and to the Letter of Credit.

We hereby certify that the transferee is the successor trustee under the Indenture.

Please notify the transferee of this transfer.

The Letter of Credit (including amendments to this date, if any) is returned herewith, and we
request that you issue a new irrevocable letter of credit in favor of the transferee with
provisions consistent with the Letter of Credit, as required by the terms of the Letter of Credit.
This transfer shall be void and of no effect if you fail to issue such a letter of credit to the
transferee.

Yours very truly,

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	,	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	as Trustee
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:exv10w21

 

APPENDIX G

To Southwest Georgia Farm Credit, ACA

Irrevocable Letter of Credit

No.                     

Form of Sight Draft

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	City
	 	State

	 	 	TO: Southwest Georgia Farm Credit, ACA

        411 West Broughton Street

        Bainbridge, Georgia 39818

        Attention:                    

	 	 	 	 	 
	At site
	 	 	 	 
	PAY TO:

	 	Wells Fargo Bank, N.A., as Trustee
 

(BENEFICIARY’S NAME)
	 	 

                                                                 U.S. DOLLARS ($    
                                    ) FOR VALUE RECEIVED AND CHARGE TO
ACCOUNT OF IRREVOCABLE LETTER OF CREDIT NO.                                         

	 	 	 	 	 	 	 
	 	 	Wells Fargo Bank, N.A.,

Corporate Trust Agents

11th Floor

MAC P6101-114

Portland, Oregon 97201	 	 
	 

	 	Attention:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	ABA No:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Account No:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	,
	 	 	 	 	 
	 	 	As Trustee	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

(Authorized Officer)
	 	 

 

 

Exhibit 10.21

IRREVOCABLE CONFIRMATION NO. SE446849W

$29,000,000

Mitchell County Development Authority

Variable Rate Demand Solid Waste Disposal

Revenue Bonds, Series 2006

(First United Ethanol, LLC Project)

	 	 	 	 	 
	Date of Issue:	 	November 30, 2006
	Stated Expiration Date:	 	November 30, 2007
	 
	 	 	 	 
	 

	 	To:
	 	Wells Fargo Bank, National Association
	 

	 	 	 	Corporate Trust Department
	 

	 	 	 	1300 SW Fifth Avenue,
11th
Floor
	 

	 	 	 	MAC P6101-114
	 

	 	 	 	Portland, OR 97201

Ladies and Gentlemen:

     We hereby confirm at the request of and for the account of Southwest Georgia Farm Credit, ACA, a
federally chartered instrumentality organized and existing under the laws of the United States of
America (the “LOC Bank”), the Letter of Credit No. 050-011-574509-02 issued by the LOC Bank on
November 30, 2006 as extended from time to time (as amended, modified or supplemented from time to
time, the “Letter of Credit”). We hereby irrevocably authorize Wells Fargo Bank, National
Association, as Trustee (the “Trustee”) under the terms and conditions more fully set forth in
Trust Indenture, dated as of October 1, 2006 (as amended, modified or supplemented from time to
time, the “Indenture”), by and between the Mitchell County Development Authority (the “Issuer”) and
the Trustee, pursuant to which $29,000,000 in aggregate principal amount of the Issuer’s Variable
Rate Demand Solid Waste Disposal Revenue Bonds, Series 2006 (First United Ethanol, LLC Project)
(the “Bonds”) were issued by the Issuer, $29,000,000 principal amount of which are currently
outstanding, to draw on us at sight up to a maximum aggregate amount of Twenty Nine Million Eight
Hundred Sixty-Six Thousand Twenty-Seven Dollars and Forty Cents ($29,866,027.40) (the “Stated
Amount”), upon the terms and conditions hereinafter set forth, in the event that the Trustee’s
drawing presented to the LOC Bank is dishonored (“dishonored draw”) for the reasons indicated
below. Of the Stated Amount:

	 	(1)	 	an amount not exceeding fifty three million five hundred thousand dollars
($29,000,000) may be drawn upon for payment of the unpaid principal amount of the Bonds
(the “Principal Portion”); and
	 
	 	(2)	 	an amount not exceeding Eight Hundred Sixty-Six Thousand Twenty-Seven Dollars
and Forty Cents ($866,027.40) may be drawn upon for the payment of up to one hundred
and nine days (109) days’ accrued interest on the Bonds at the maximum interest rate of
ten percent (10%) calculated on the basis of the actual number of days elapsed over a
year of 365 or 366 days, as applicable (the “Interest Portion”),

 

 

all effective immediately and expiring on the Stated Expiration Date set forth above. This
Confirmation is irrevocable.

     In the event a properly made request for a draw under the Letter of Credit is dishonored by the LOC
Bank (other than a dishonored draw due to discrepant documents presented), or prior to a properly
made draw request to the LOC Bank you have knowledge that the LOC Bank or any governmental
authority having jurisdiction over the LOC Bank has repudiated the Letter of Credit (any such event
described above, a “Dishonored Draw”), you shall be entitled to make a draw hereunder as provided
below.

     Funds under this Confirmation are available to the Trustee against its sight draft presented
to Wachovia Bank, National Association, in the form attached hereto as Exhibit A,
accompanied by a Certificate in the form attached hereto as Exhibit B, each signed by a
duly authorized officer or signer of the Trustee and accompanied by a copy of any draft and
certificate submitted (or, if the Letter of Credit has been repudiated, which would have been
submitted) to the LOC Bank for payment and refused. Presentation of such draft and certificate
shall be made at our offices located at: Wachovia Bank, National Association, 401 Linden Street 1st
Floor Winston-Salem, North Carolina 27101 Attention: Standby Letter of Credit Department. Any
draws made by facsimile will be made to (336) 735-0950/ 0952 and will be promptly followed by an
original, executed draft and certificate to our offices (such draft and certificate shall provide
the date when its facsimile copy was sent to us). We will honor drawings hereunder with our own
funds.

     Drafts drawn under and in compliance with the terms of this Confirmation must be presented to us
before the close of business on the Stated Expiration Date; provided, however, that this
Confirmation shall be automatically renewed without amendment for successive one (1) year periods
from the Stated Expiration Date and each successive expiration date thereafter (each an “Expiration
Date”) to a final Expiration Date of November 30, 2013, unless at least sixty (60) days prior to
the applicable Expiration Date we shall notify the Trustee by certified mail, return receipt
requested or courier mail, that we are not renewing this Confirmation for any additional period.
Notwithstanding the foregoing, this Confirmation shall be renewed only (a) upon the renewal of the
Letter of Credit and (b) to an Expiration Date which is not later than the scheduled expiration
date of the renewed Letter of Credit.

     Multiple draws are not permitted under this Confirmation.

     As used herein, “Business Day” means any day other than (1) a Saturday or Sunday, (2) a day on
which commercial banks in (a) New York, New York, or (b) the city or cities in which the (i)
corporate trust office of the Trustee responsible for administration of the Indenture, or (ii) the
office of the LOC Bank or our office at which demands for payment under the Letter of Credit or
this Confirmation, respectively, are to be presented, or (iii) our branch through which we wire
funds, are authorized or required by law to close or (3) a day on which the New York Stock Exchange
is closed.

     If a drawing is made by the Trustee hereunder on a Business Day, and provided that such drawing and
the documents presented in connection therewith conform to the terms and conditions hereof and are
presented at such office at or prior to 4:00 p.m., Eastern Time, payment
shall be made to the Trustee of the amount specified, in immediately available

-2-

 

funds, no later than
2:00 p.m., Eastern Time, on the next succeeding Business Day. If a drawing is made by the Trustee
hereunder on a Business Day, and provided that such drawing and the documents presented in
connection therewith conform to the terms and conditions hereof and are presented to such office
after 4:00 p.m., Eastern Time, payment shall be made to the Trustee of the amount specified, in
immediately available funds, no later than 2:00 p.m., Eastern Time, on the second succeeding
Business Day.

     This Confirmation and the Stated Amount available to be drawn by the Trustee shall be
automatically, immediately and permanently reduced by an amount equal to any permanent reduction of
the “Stated Amount” under the Letter of Credit. You will promptly communicate any and all
reductions to us with a telephonic notification to (800) 776-3862 followed by an original completed
reduction certificate, in the form attached hereto as Exhibit D, via courier service. Upon
such presentation, we will either reissue this Confirmation in the maximum amount available
hereunder or otherwise amend this Confirmation to reflect such maximum amount then available.

     This Confirmation will cease upon the earliest of: (a) the Expiration Date of this
Confirmation or any extended date hereof; (b) the expiration date of the Letter of
Credit or any extended date thereof; (c) the occurrence of any automatic termination
event described in the Letter of Credit; or (d) the discharge of all of the LOC
Bank’s obligations under the Letter of Credit.

     To the extent not inconsistent with the express terms hereof, this Confirmation shall be
subject to the International Standby Practices 1998, International Chamber of Commerce Publication
No. 590 (“ISP98”).

     We will honor a drawing under this Confirmation made on the fifth (5th) Business
Day upon which we resume our business following an interruption of business due to acts of God,
riots, civil commotions, insurrections, wars or any other causes beyond our control if the Stated
Expiration Date occurs during such interruption, provided such documents conform to the terms of
this Confirmation in all other respects.

     This Confirmation is transferable in its entirety to any transferee whom you certify to us as
having succeeded you as Trustee in accordance with, and meeting all the requirement of, the terms
of the Indenture and as beneficiary of this Confirmation and the Letter of Credit, and may be
successively transferred. Transfer of this Confirmation to such transferee shall be effected by
the presentation to us of this Confirmation accompanied by a certificate in the form attached
hereto as Exhibit C and after we have received satisfactory notification that LOC Bank has
agreed to the transferee on their books. Upon such presentation we shall forthwith transfer the
same to the transferee by endorsing the transfer on the reverse of this Confirmation and forwarding
the same directly to the transferee together with our customary notice of transfer or, if so
requested by the transferee, issue a confirmation to the transferee with provisions therein
consistent with this Confirmation.

     This Confirmation sets forth in full the terms of our undertaking, and such undertaking shall not
in any way be modified or amplified by any agreement in which this Confirmation is referred to or
to which this Confirmation relates except ISP98, and any such reference shall not be deemed to
incorporate herein by reference any agreement except ISP98.

-3-

 

     This Irrevocable Confirmation will become operative on November 30, 2006. Any claims or
drawings presented before November 30, 2006 will not be accepted.

	 	 	 	 	 
	 	 	Sincerely,
	 
	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian Perryman
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Berryman
	 

	 	Title:
	 	Banking Officer

-4-

 

EXHIBIT A

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

Date:                                         

Pay to the order of                      the amount of                                          ($                    ) drawn on Wachovia
Bank, National Association, as issuer of its Irrevocable Confirmation No. SE446849W, dated November
30, 2006.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	, as Trustee
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

EXHIBIT B

CERTIFICATE

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

	Re:	 	 Wachovia Bank, National Association

Irrevocable Confirmation No. SE446849W

Date:                                         

     The undersigned, a duly authorized officer or signer of the Trustee, certifies to Wachovia Bank,
National Association as issuer of the above-referenced Confirmation:

	 	1.	 	All terms defined in the Confirmation are used in this certificate with the
same meanings.
	 
	 	2.	 	The Trustee has duly presented a compliant drawing to LOC Bank for payment
pursuant to its Letter of Credit and such drawing was not honored (we further certify
that we have not received any notice/communication from the LOC Bank that our drawing
was non-conforming) or the LOC Bank has repudiated the Letter of Credit. We attach
herewith a copy of our original draw certificate and draft drawn on and presented (or
which would have been presented except for the repudiation of the Letter of Credit) to
the LOC Bank on the respective due date.
	 
	 	3.	 	The total amount being requested hereunder is $                    , being equal to the
sum of (a) $                     constituting the current Principal Portion and (b) $                    
constituting the current Interest Portion.
	 
	 	4.	 	Please wire funds as follows:
                                                            .

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	, as Trustee
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

EXHIBIT C

INSTRUCTION TO TRANSFER

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

Re: Your Irrevocable Confirmation No. SE446849W

Ladies and Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably transfers to [Insert Name and
Address of Transferee], all rights of the undersigned beneficiary to draw under the
above-referenced Confirmation (the “Confirmation”). The transferee has succeeded the undersigned
as Trustee under the Indenture and as beneficiary under the Letter of Credit (as such terms are
defined in the Confirmation).

     By this transfer, all rights of the undersigned beneficiary in the Confirmation are
transferred to the transferee and the transferee shall hereafter have the sole rights as
beneficiary thereof, provided, however, that no right shall be deemed to have been transferred to
the transferee until such transfer complies with the requirements of the Confirmation pertaining to
transfers. The Confirmation is returned herewith and in accordance therewith we ask that this
transfer be effective and that you transfer the Confirmation to our transferee by endorsing the
transfer on the reverse of the original Confirmation and forwarding the same directly to the
transferee together with your customary notice of transfer or that, if so requested by the
transferee, you issue a new irrevocable confirmation in favor of the transferee with provisions
consistent with the Confirmation. We have already communicated our request to the LOC Bank and
understand that this confirmation transfer will not be effective until you receive instructions
from the LOC Bank that they have effected the transfer on their books. Once the transferred credit
is received by the LOC Bank we will effect the transfer of our confirmation herewith.

	 	 	 	 	 	 	 
	Date:                    

	 	 	 	 	 	, as Trustee
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

 

 

EXHIBIT D

CERTIFICATE AS TO REDUCTION

OF CONFIRMATION COMMITMENT

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

	 	RE: 	 	Wachovia Bank, National Association Irrevocable Confirmation No. SE446849W

Ladies and Gentlemen:

     The undersigned, a duly authorized officer or signer of                     , a national banking
association, as Trustee (the “Trustee”), hereby certifies to you, with reference to your
Irrevocable Confirmation No SE446849W (the “Confirmation”) issued by you in favor of the Trustee
that:

	 	1.	 	The Trustee is the Trustee under the Indenture for the holders of the Bonds.
	 
	 	2.	 	The Confirmation is entitled to a reduction in the Stated Amount as a
result of a permanent reduction of the “Stated Amount” under and as defined in the
letter of credit. the Stated Amount shall be reduced, effective as of                                         , as follows:

	 	A.	 	The Principal Portion shall be reduced to $                                        .
	 
	 	B.	 	The Interest Portion shall be reduced to $                                        .

	 	3.	 	The undersigned officer or signer and representative is duly authorized to
sign this certificate on behalf of the Trustee.
	 
	 	4.	 	Capitalized terms used herein and not defined shall have their respective
meanings as set forth in the Confirmation.

 

 

IN WITNESS WHEREOF, the duly authorized officer or signer of the Trustee has executed and delivered
this Certificate as to Reduction of Confirmation Commitment on this
___ day of ______,
200_.

	 	 	 	 	 	 	 
	TRUSTEE:          

	 	 	 	 	 	, as Trustee
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]