Common use of Partial Release of Security Clause in Contracts

Partial Release of Security. If the City Engineer is of the opinion that the Works or any portion thereof have been adequately completed, and the Owner's covenants performed in compliance with this Agreement, and if there is no litigation pending or threatened against the City as a result of, or arising from the construction of the Works, the City Engineer may (but is not obligated to), at the request of the Owner's engineer, return a portion of the Security Deposit to the Owner, during the period from the commencement of construction to substantial completion (as evidenced by the Certificate of Substantial Completion). The minimum amount of any security release for any given month will be $10,000.00. The release pursuant to this section 26 will be up to an amount necessary to ensure sufficient Deficiency Security and Warranty Security remain on deposit with the City after substantial completion (as evidenced by the Certificate of Substantial Completion).