Letter Of Credit

The county yesterday cashed a $2 million letter of credit against the developer of the 4,700-unit Seven Oaks development in Odenton, forcing Sovran Bank to pay the second installment for a new elementary school.The state Court of Special Appeals denied a request Wednesday by the Halle Cos. to stop the county from cashing the letter until an appeal could be heard. The bank is responsible for paying the $2 million, and Halle, in turn, owes the bank. The company also owes the county an additional $60,000 for lost interest.

WILMINGTON, Del. - A federal bankruptcy court judge approved yesterday more than a dozen legal motions filed by Tribune Co. that will allow it to borrow millions, pay thousands of employees and maintain critical vendor and customer contracts. The motions were designed to keep the media giant operating while it restructures its finances, a process that could take a year or more. It was the initial court appearance for the Chicago-based parent company of The Baltimore Sun and other newspapers, television stations and media properties across the nation after its Chapter 11 bankruptcy filing Monday, which encompasses 110 of the company's 127 subsidiaries.

Although escrow accounts may be one of the more popular ways builders handle deposits from homebuyers, surety bonds and letters of credit also can be used.There are pros and cons to each, according to John Nethercut, assistant attorney general in the Consumer Protection Division. "The bond or the letter of credit are good in the sense that they are, unlike a bank account, easier to get at and verify," Nethercut said."The good thing about the bonds and letters of credit is that they are publicly filed; the bad thing is that there may not be 100 percent recovery," he said.

Although escrow accounts may be one of the more popular ways builders handle deposits from homebuyers, surety bonds and letters of credit also can be used.There are pros and cons to each, according to John Nethercut, assistant attorney general in the Consumer Protection Division. "The bond or the letter of credit are good in the sense that they are, unlike a bank account, easier to get at and verify," Nethercut said."The good thing about the bonds and letters of credit is that they are publicly filed; the bad thing is that there may not be 100 percent recovery," he said.

A credit pool created by the Maryland Economic Development Corp. and NationsBank will make $75 million in proceeds from the sale of variable-rate bonds available to smaller county and municipal governments for construction and other projects.Medco expects to lend the first $20 million or more in the next 90 days to finance "seven or eight projects such as water and sewer lines and other local development activities," said Hans F. Mayer, the quasi-public state agency's executive director.The pool is designed to meet the needs of smaller municipalities and local government agencies such as water and sewer authorities, which sometimes have trouble getting credit because of their size, Mr. Mayer said.

Prospective Baltimore NFL team owner Malcolm Glazer yesterday filed a $20 million letter of credit with the league, a technical requirement for expansion candidates."

The San Diego Sockers and the Dallas Sidekicks have come under new ownership and will be treated as new franchises in the 1991-92 season, Major Soccer League commissioner Earl Foreman announced yesterday.Foreman also said the Wichita Wings, who had to meet a 5,000 season ticket sale deadline by 5 p.m. yesterday, reached their goal and are ready to show a letter of credit. Foreman also said the Tacoma Stars are approximately 2,600 season tickets from their goal of 4,000, which they must meet by July 29."

The county filed suit against the developer of Seven Oaks residential community yesterday, attempting to collect the third and final payment for an elementary school planned for the Odenton site.The $2.1 million installment was due July 1, and Deputy County Attorney Stephen LeGendre said the county had not received payment.LeGendre said eight months of talks with the Halle companies of Silver Spring had failed, and his only recourse was to take the case to county Circuit Court. "There are no active proposals on the table,"he said.

It isn't even a hole in the ground yet, but county officials already have $2.5 million in hand for Odenton's new elementary school.Sovran Bank wrote out a check last Thursday for $2 million -- the second of three installments pledged by Halle Cos. for a new school in its Seven Oaks development. The Silver Spring-based builder had promised to pay a total of $4.7 million.Halle purposely defaulted July 1 on its payment, claiming the county reneged on a deal to enlarge the Patuxent Waste Water Treatment Plant.

Cleveland-based businessman Alfred Lerner is expected to file an application today to own an NFL expansion team in Baltimore, becoming the third owner vying for a local team.His emergence, with the encouragement of Gov. William Donald Schaefer, is at least a vote of no confidence for the two other potential owners who have been involved in the effort for more than a year: Florida-based corporate investor Malcolm Glazer and Baltimore-born retail executive Leonard "Boogie" Weinglass.Although officials would not confirm that Schaefer would endorse Lerner, Weinglass said he was told otherwise during a 50-minute meeting yesterday morning.

A credit pool created by the Maryland Economic Development Corp. and NationsBank will make $75 million in proceeds from the sale of variable-rate bonds available to smaller county and municipal governments for construction and other projects.Medco expects to lend the first $20 million or more in the next 90 days to finance "seven or eight projects such as water and sewer lines and other local development activities," said Hans F. Mayer, the quasi-public state agency's executive director.The pool is designed to meet the needs of smaller municipalities and local government agencies such as water and sewer authorities, which sometimes have trouble getting credit because of their size, Mr. Mayer said.

The developer of the 171-acre parcel in Union Bridge known as the Phillips property is suing town government for trying to draw upon the developer's $78,000 letter of credit to complete a well on the property.Union Bridge Developers Inc. alleges in court documents that town officials committed a breach of contract by trying to withdraw the money from Commercial and Farmers Bank in Ellicott City on Dec. 8 -- several months before the date agreed to in 1992, when the site on Route 75 was annexed to the town.

Cleveland-based businessman Alfred Lerner is expected to file an application today to own an NFL expansion team in Baltimore, becoming the third owner vying for a local team.His emergence, with the encouragement of Gov. William Donald Schaefer, is at least a vote of no confidence for the two other potential owners who have been involved in the effort for more than a year: Florida-based corporate investor Malcolm Glazer and Baltimore-born retail executive Leonard "Boogie" Weinglass.Although officials would not confirm that Schaefer would endorse Lerner, Weinglass said he was told otherwise during a 50-minute meeting yesterday morning.

Prospective Baltimore NFL team owner Malcolm Glazer yesterday filed a $20 million letter of credit with the league, a technical requirement for expansion candidates."

Yesterday's article in the Carroll County edition about former Taneytown City Manager Joseph A. Mangini should have said he was attempting to rent a house in Pennsylvania.The Baltimore Sun regrets the errors.Joseph A. Mangini Jr. says that when he was fired as Taneytown city manager two weeks ago, the mayor and City Council told him there was an appearance of impropriety in his dealings with a local developer.Mr. Mangini denies that he handled any city business inappropriately. He says the mayor and council just wanted an excuse to eliminate a driving force in the city's government.

Residents of an Odenton development will get their swimming pool, and the county will collect further payments on a new elementary schoolas the result of an out-of-court settlement between the developer and county officials.The settlement ends a 15-month legal battle that included charges and counter-charges of broken promises involving construction of the Seven Oaks community."The citizens will be very happy," said Stephen N. Fleischman, vice president of The Halle Cos., a Silver Spring-based company building the 4,700-unit development.

County officials are considering a lawsuit against the developer of Odenton's Seven Oaks residential community, saying the company has failed to provide a bank guarantee for a $2.1 million payment for a new elementary school.It is now nearly one month past the deadline for the Halle Cos. to secure the letter of credit from Sovran Bank. Halle's payment is due July 1, 1991.Deputy County Attorney Stephen LeGendre said yesterday his office has waited long enough."I don't know what options I have," he said.

The developer of the 171-acre parcel in Union Bridge known as the Phillips property is suing town government for trying to draw upon the developer's $78,000 letter of credit to complete a well on the property.Union Bridge Developers Inc. alleges in court documents that town officials committed a breach of contract by trying to withdraw the money from Commercial and Farmers Bank in Ellicott City on Dec. 8 -- several months before the date agreed to in 1992, when the site on Route 75 was annexed to the town.

Negotiations between the developer of the Seven Oaks residential community and the county over $2.1 million for an elementary school could wrap up by the end of the year with a compromise, the developer says."

The teetering Major Soccer League will remain in operation for at least this weekend. Commissioner Earl Foreman today said he will call a meeting of the league's board of directors on Monday to review the current crisis.Last night, MSL directors said they would cease operations today if the Major Soccer League Players Association did not accept an ultimatum for a new wage scale. Directors added that there was no room for negotiations.But Foreman said in today's statement that he will present the MSLPA's counter-proposal received last night.