ORDER NO. 2748&
APPROVAL OF INDEMNITY AND HOLD HARMLESS AGREEMENT BY AND
BETWEEN SAN ANTONIO SAVINGS ASSOCIATION AND KERR COUNTY,
TEXAS
On this the 24th day of September 1987, upon motion made
by Commissioner R~~ seconded by Commissioner
Lich , the Court unanimously approved an INDEMNITY
AND HOLD HARMLESS AGREEMENT, by and between SAN ANTONIO
SAVINGS ASSN. and KERB COUNTY, TEXAS, concerning FALL
BRANCH ESTATES, a Subdivision in Kerr County Commissioner's
Precinct No. Four.
It is ordered by the Court that County Judge Edwards be
authorized to execute said agreement on behalf of Kerr
County.
SAN ANTONIO SAVINGS ASSN. TO KERR_COUNTY:_TEXAS
------------------------- - --
INDEMNITY_AND_HOLD_HAF~MLESS_AGREEMENT
THE STATE OF TEXAS, }
COUNTY OF KERR. }
This Agreement is made the 17th_ day of _ September______,
1987, by and between SAN ANTONIO SAVINGS ASSOCIATION, a duly
authorized Texas mutual savings and loan association, acting by
its duly authorized representative, ROBERT WEINHEIMER, and KERR
COUNTY, TEXAS, acting by and through its duly authorized County
Judge upon resolution of the Commissioners' Court.
WHEREAS KERR COUNTY, TEXAS did enter into and accept a Trust
Agreement in Lieu of Performance Bond dated April 8, 1985 between
JAMES A. LAMMERS, Subdivider and KERR COUNTY, TEXAS, which Trust
Agreement provides that JAMES A. LAMMERS as subdivider has
deposited a letter of credit from National Bank of Commerce of
Kerrville in the sum of $30,000.00 for the purpose of
guaranteeing construction of site improvements in Fall Branch
Estates, a subdivision in Kerr County, Texas and in said Trust
Agreement, subdivider agreed to construct all site improvements
within three (3) years from the date of final approval of the
plat of the said subdivision and upon failure of the subdivider
to provide said site improvements, KERR COUNTY, TEXAS, in
accordance with said Trust Agreement, has the right to draw
against the letter of credit for the sole purpose of completing,
repairing, maintaining, or otherwise working on the site
improvements in such subdivision, limited to such amounts as are
necessary for completion of same; and
WHEREAS a resolution of the Commissioners' Court of Kerr
WHEREAS KERR COUNTY, TEXAS has been furnished letter of
credit number 8030, being an irrevocable letter of credit of
National Bank of Commerce, Kerrville, Texas, in accordance with
said trust agreement; and
WHEREAS said site improvements have not been completed; and
WHEREAS JAMES A. LAMMERS, subdivider, has signed an
affidavit which is duly filed of record in Kerr County, Texas, a
copy of which is attached hereto as an Exhibit, stating he will
not complete said site improvements and requesting Kerr County,
Texas to complete same and seek payment from the letter of
credit; and
WHEREAS SAN ANTONIO SAVINGS ASSOCIATION is a major property
owner in said subdivision and desires KERR COUNTY, TEXAS to
complete said subdivision road improvements in accordance with
the Trust Agreement; and
WHEREAS there is a question as to whether or not the entire
three (3) year period must be allowed prior to KERB COUNTY, TEXAS
drawing upon said letter of credit after completion of the site
improvements as set forth in the Trust Agreement; and
WHEREAS KERR COUNTY, TEXAS would not agree to begin
construction of the site improvements because of failure of
subdivider, JAMES A. LAMMERS, to complete same without the
indemnification and hold harmless agreement of SAN ANTONIO
SAVINGS ASSOCIATION, the parties agree as hereinafter provided:
1. For and in consideration of the execution of this
Indemnity Agreement and the obligations set forth
herein, KERR COUNTY, TEXAS does hereby agree to
complete such site improvements as are incomplete in an
~mnunt not to PYC`P Pl~ the ~nm of ~sn _ nnn _ nn anrj tc~ rjn
2. KERR COUNTY, TEXAS does further agree that for and in
consideration of the execution of this agreement and
the covenants to be performed by SAN ANTONIO SAVINGS
ASSOCIATION that KERR COUNTY, TEXAS shall comply with
all requirements of the Trust Agreement and the Letter
of Credit with respect to resolutions by the Kerr
County Commissioners' Court and proper documentation
and request for payment and draft upon letter of credit
number 8030 on National Bank of Commerce of Kerrville,
Texas.
SAN ANTONIO SAVINGS ASSOCIATION, for and in consideration of
the covenants, herein and the actions of Kerr County, Texas set
forth above does hereby agree as follows:
1. To indemnify KERR COUNTY, TEXAS of and from any loss
which may be sustained up to the amount of $30,000.00
for completion of site improvements in accordance with
the Trust Agreement and furthermore any sums which may
be lost or incurred as expenses in connection with
seeking to enforce payment under the terms of the
Letter of Credit referred to herein.
2. In connection with the preceding paragraph, SAN
ANTONIO SAVINGS ASSOCIATION does further undertake this
agreement with the understanding that KERR COUNTY,
TEXAS will do everything within its power to seek
repayment for the site improvements by drafting upon
the Letter of Credit referred to herein and in
accordance with the Letter of Credit, and should KERR
COUNTY, TEXAS be unsuccessful in drawing upon said
Letter of Credit, with all such costs and expenses to
be borne by SAN ANTONIO SAVINGS ASSOCIATION with
respect to attorney's fee:, court costs, and expenses.
In connection with its obligation to indemnify and the
obligations of both parties the parties agree that Kerr County,
Texas shall continue to pursue payment from National Bank of
Commerce of Kerrville under the terms of the letter of credit,
and that San Antonio Savings Association shall pay the sums
required to indemnify Kerr County, Texas only after San Antonio
Savings Association has informed Kerr County, Texas to abandon
efforts to collect on the letter of credit, or upon ruling of a
Court of Appeals that Kerr County, Texas is not entitled to
payment under the terms of the letter of credit or by denial of
petition for writ of error to the Supreme Court of Texas, or
ruling adverse to Kerr County, Texas.
SIGNED this _17th--- day of __ September__________, lg 87
ATTEST•
~~
~~ , .
T. W. CONERLY
THE STATE OF TEXAS, }
COUNTY OF KERR }
SAN ANTQ~iIO SAV NGS ASSOCIATION
./~`
Robert 4Veinheimer
KERR COUNTY, TEXA
By ~ ~-~-L~ - ~ - ---- ------
DANNY REDWARDS- County Judge
The above instrument was acknowledged before me on the 17th_
day of _Se~tember __________, 19_87 , by _ Robert Fleinheimer __________,
__Re~ional Vice President___________ of San Antonio Savings
~~~,..._..a-;..., .~ 1-.~„lr;,,s nnrnnra~'inn. nn hr?half of said
THE STATE OF TEXAS, }
COUNTY OF _ KERR________ • }
The above instrument was acknowledged before me on the _28th_
---
day of __ September _________, 19_87 by _DANNY R_ EDWARDS ___________,
County_Judge____________________ of Kerr County, Texas, on behalf
of said county.
~~ 2
_G_ ~~.__ __~J~~------
Notary Public in and for the
State of Texas
LIDIA S__BETTS
--------------------
Printed Name of Notary
My Commission Expires: _ 8-5-91__
PA A YE ~~ •. a~ J r
CouA rr . T
~ _ ,
` SEP 2 $ RECD
FA1' DOOLF,Y
RICI IARll I IOF,RS'fF.R
ASSOCIATE
PA'I'I11CK M UOOLF.Y
September 24, 19$7
Mr. Matthew W. Paul
Assistant County Attorney
704 Jefferson, Suite B
Kerrville, Texas 78028
(512(9974303
(512J997 71A1
RE: Fall Branch Estates Agreement between Kerr County,
Texas and San Antonio Savings Association
Dear Mr. Faul:
Today I was informed by Ted Conerly that tt-e county accepted
the Indemnity Agreement as prepared by myself after being
submitted by San Antonio Savings Association. It is my
understanding tl>at this construction contract will be let for
bids around October 1st with the bids to be received around
October 15th.
If San Antonio Savings Association or I cai>; be of any
assistance in connection with any of the particulars, please
advise. Additionally, if you want to contact me in connection
with the submission of the request for payment in accordance with
the letter of credit, I will be more than happy to consult with
you. I would like to receive copies of t}ie request for payment
in accordance wii:h the Letter of credit and be kept up to date or)
any responses other than payment. Once the letter of credit is
paid, I believe that I would like to request a release of the
indemnity agreement with respect to San Antonio Savings
Association, however, will be in contact with you further in
connection with that once National Bank of Commerce pays in
accordance with the letter of credit.
If you have ac)y questions or concerns, once again, please
feel free to contact me. I appreciate your cooperation and the
cooperation of Judge Edwards in connection with this matter.
Sincerely,
/ ,'.
PATRICK M. DOOLE
PMD/ch
1)UU1,GY & IlO1~.1tS'1'lslt
A'CTORN EYS
IOfi WF;S'f M17AIN STRIiET
FREDERICKSHURG. TEXAS 78624
cc: Mr. Ted Conerly
Judge Danny Edwards