Common use of Reduction of Securities Clause in Contracts

Reduction of Securities. An application for the reduction of the security on deposit with the Town pursuant to Section 9.2 herein may be made no earlier than thirty (30) days after the commencement of construction of the Works and every thirty (30) clear days thereafter. (a) To obtain a reduction in security the Developer shall file with the Town’s Engineer a written application in accordance with Schedule “J” attached hereto. (b) The application shall include written confirmation from the Developer’s Engineer: • describing the Works constructed as at the date of the application and a calculation of the cost thereof. • confirming that the Works have been installed by the Developer with full time supervision of the Developer’s Engineer and in accordance with the requirements of this Agreement and schedules hereto. • describing the Works remaining to be completed as at the date of the application and a calculation of the estimated cost thereof. (c) The value of the reduction shall be determined by the Town’s Engineer who shall give a certificate to the Municipal Clerk and the Developer confirming the amount of the reduction of the security and the amount of the security remaining on deposit with the Town. (d) The value of the reduction shall be based upon the one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works completed to the date of the application. Should Final Acceptance be granted for any Stage or Stages of the works, then the reduction shall be based upon one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works for those Stages of construction that have not received Final Acceptance to the date of the application (e) As a minimum security, subject to any outstanding deficiencies or contingencies, the Town throughout the maintenance period shall hold as security the greater of ten percent (10%) of the estimate of the cost of the Works as set out in Schedule “E” or twenty thousand dollars ($20,000.00).

Reduction of Securities. An application for the reduction of the security on deposit with the Town Municipality pursuant to Section 9.2 herein may be made no earlier than thirty (30) days after the commencement of construction of the Works and every thirty (30) clear days thereafter. (a) To obtain a reduction in security the Developer shall file with the TownMunicipality’s Engineer a written application in accordance with Schedule “J” attached hereto. (b) The application shall include written confirmation from the Developer’s Engineer: • describing the Works constructed as at the date of the application and a calculation of the cost thereof. • confirming that the Works have been installed by the Developer with full time supervision of the Developer’s Engineer and in accordance with the requirements of this Agreement and schedules hereto. • describing the Works remaining to be completed as at the date of the application and a calculation of the estimated cost thereof. (c) The value of the reduction shall be determined by the TownMunicipality’s Engineer who shall give a certificate to the Municipal Clerk and the Developer confirming the amount of the reduction of the security and the amount of the security remaining on deposit with the TownMunicipality. (d) The value of the reduction shall be based upon the one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works completed to the date of the application. Should Final Acceptance be granted for any Stage or Stages of the works, then the reduction shall be based upon one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works for those Stages of construction that have not received Final Acceptance to the date of the application (e) As a minimum security, subject to any outstanding deficiencies or contingencies, the Town Municipality throughout the maintenance period shall hold as security the greater of ten percent (10%) of the estimate of the cost of the Works as set out in Schedule “E” or twenty thousand dollars ($20,000.00).