Letter of Credit No.__________

Dated:_______________

Expiration Date:_______________

Amount:__________

City of Columbia Falls

P. O. Box 1970

Columbia Falls, MT 59912

We hereby establish in your favor an irrevocable letter of credit up to the aggregate amount of $__________ at the request of ____________________ (Name of Subdivider).

If ____________________(Name of Subdivider) fails to complete the specified improvements in the ____________________(Name of Subdivision) within the time period set forth in the attached Improvements Agreement, we will pay on demand your draft or drafts for such funds, to the limit of credit set forth herein, as are required to complete said improvements. All drafts must indicate the number and date of this letter of credit and be accompanied by a signed statement of an authorized official that the amount is drawn to install improvements not installed in conformance with the Improvements Agreement and specifying the default or defect in question.

All drafts must be presented prior to the expiration date stated above, and this letter of credit must accompany the final draft for payment.

This letter may not be withdrawn or reduced in any amount prior to its expiration date except by your draft or written release.

____________________

(Name of Lending Institution)

____________________

(Signature and Title of Authorized Official)