Common use of Security for Construction Installation of Improvements Clause in Contracts

Security for Construction Installation of Improvements. A. Prior to filing of a final plat, the Developer shall provide to the City cash-in-lieu of bond, an irrevocable letter of credit, or a performance surety bond payable to the City to secure design of the Improvements and full completion of the Improvements contemplated by this Agreement (the “Infrastructure Security”). The Infrastructure Security shall be for a minimum of $1,102,600.80, based upon the Cost Estimate submitted by Developer (attached as Exhibit C), or an amount equal to the anticipated cost to design the Improvements and fully complete the Improvements, whichever is larger. Upon completion and Initial Acceptance of any phase, the Developer may provide the City with an updated cost estimate of the remaining improvements and have its surety reduced to reflect the value of the outstanding Improvements. If the Developer is providing cash-in-lieu of an irrevocable letter of credit, the amount of the surety shall be equal to one hundred fifteen percent (115%) of the estimated cost to design and construct the Improvements. A bond or letter of credit shall be valid for a minimum of six (6) months after Initial Acceptance. The Developer shall obtain Initial Acceptance of the improvements contemplated in this agreement at least six (6) months before the expiration of any instrument provided under this section. If the Developer fails to do so, the City may draw on the instrument and complete the improvements or may require that the Developer extend the expiration date of the original surety or provide a new surety to replace the original instrument. If a letter of credit is provided, it shall be drawn on a local South Dakota institution, or if issued by an out of state financial institution, one that has been approved by the City Attorney’s Office. B. Upon issuance of the letter of Initial Acceptance described in Section VI(D), the City shall release the Infrastructure Security so long as all releases of any mechanic’s liens have been filed with respect to the project and an acceptable Warranty Security as provided in Section V of this Agreement has been executed and delivered to the City. The City may release the Infrastructure Security if a sufficient replacement surety is provided in accordance with Section A.

Security for Construction Installation of Improvements. A. Prior to filing of a final plat, the Developer shall provide to the City cash-in-lieu of bond, an irrevocable letter of credit, or a performance surety bond payable to the City to secure design of the Improvements and full completion of the Improvements contemplated by this Agreement agreement (the “"Infrastructure Security”"). The Developer shall not be required to post the Infrastructure Security shall be required by this section for a minimum of $1,102,600.80, based upon any Improvements which have been completed and for which Initial Acceptance by the Cost Estimate submitted by Developer (attached as Exhibit C), or an amount equal to the anticipated cost to design the Improvements and fully complete the Improvements, whichever is largerCity has been obtained. Upon completion and Initial Acceptance of any phase, the Developer may provide the City with an updated cost estimate of the remaining improvements and have its surety reduced to reflect the value of the outstanding Improvements. If the Developer is providing cash-in-lieu of an or a irrevocable letter of credit, the amount of the surety shall be equal to one hundred fifteen percent (115%) of the estimated cost to design and construct of the Improvements. A bond or letter of credit shall be valid for a minimum of six (6) months after until Initial Acceptance. The Developer shall obtain Initial Acceptance of the improvements contemplated in this agreement at least six (6) months before the expiration of any instrument provided under this section. If the Developer fails to do so, the City may draw on the instrument and complete the improvements or may require that the Developer extend the expiration date of the original surety or provide a new surety to replace the original instrument. If a letter of credit is provided, it shall be drawn on a local South Dakota institution, or if issued by an out of state financial institution, one that has been approved by the City Attorney’s 's Office. B. Upon issuance of the letter of Initial Acceptance described in Section VI(DV(D), the City shall release the Infrastructure Security so long as all releases of any mechanic’s 's liens have been filed with respect to the project and an acceptable Warranty Security as provided in Section V IV of this Agreement agreement has been executed and delivered to the City. The City may release the Infrastructure Security if a sufficient replacement surety is provided in accordance with Section A..

Security for Construction Installation of Improvements. A. Prior to filing of a final plat, the Developer shall provide to the City cash-in-lieu of bond, an irrevocable letter of credit, or a performance surety bond payable to the City to secure design of the Improvements and full completion of the Improvements contemplated by this Agreement agreement (the “Infrastructure Security”). The Developer shall not be required to post the Infrastructure Security shall be required by this section for a minimum of $1,102,600.80, based upon any Improvements which have been completed and for which Initial Acceptance by the Cost Estimate submitted by Developer (attached as Exhibit C), or an amount equal to the anticipated cost to design the Improvements and fully complete the Improvements, whichever is largerCity has been obtained. Upon completion and Initial Acceptance of any phase, the Developer may provide the City with an updated cost estimate of the remaining improvements and have its surety reduced to reflect the value of the outstanding Improvements. If the Developer is providing cash-in-lieu of an or a irrevocable letter of credit, the amount of the surety shall be equal to one hundred fifteen percent (115%) of the estimated cost to design and construct of the Improvements. A bond or letter of credit shall be valid for a minimum of six (6) months after until Initial Acceptance. The Developer shall obtain Initial Acceptance of the improvements contemplated in this agreement at least six (6) months before the expiration of any instrument provided under this section. If the Developer fails to do so, the City may draw on the instrument and complete the improvements or may require that the Developer extend the expiration date of the original surety or provide a new surety to replace the original instrument. If a letter of credit is provided, it shall be drawn on a local South Dakota institution, or if issued by an out of state financial institution, one that has been approved by the City Attorney’s Office. B. Upon issuance of the letter of Initial Acceptance described in Section VI(DV(D), the City shall release the Infrastructure Security so long as all releases of any mechanic’s liens have been filed with respect to the project and an acceptable Warranty Security as provided in Section V IV of this Agreement agreement has been executed and delivered to the City. The City may release the Infrastructure Security if a sufficient replacement surety is provided in accordance with Section A..