Common use of Security for Fee Payments Clause in Contracts

Security for Fee Payments. To secure performance of Skyranch’s obligations under Section 4.2(b)(ii), prior to the issuance of a Grading Permit and Take Authorization for each phase of the Covered Project, Skyranch shall deposit with Pittsburg, for the express benefit of Pittsburg and the Conservancy, an adequate and satisfactory security in the amount of 55% of the development fee allocated to such phase in 2019 Dollars. The security may be a transferable rated bond or bonds by one or more duly authorized corporate sureties or an irrevocable standby letter of credit, as determined by Skyranch, in a form approved in advance in writing by Pittsburg and the Conservancy, which approval shall not be unreasonably withheld or unduly delayed. Skyranch shall ensure that the full amount of the security required by this Section 4.2(c) shall remain in effect until Skyranch has fulfilled its obligations under Section 4.2(b)(ii). The Parties shall cooperate with Skyranch by promptly signing any necessary documentation requested should Skyranch seek to reduce and/or release the bond as the fees under Section 4.2(b)(ii) above are paid. However, any reduction in bond amounts shall account for adjustment of the remaining fees to be paid such that the remaining bond amount stays proportionate with the number of building permits not yet issued.

Security for Fee Payments. To secure performance of SkyranchAltec’s obligations under Section 4.2(b)(ii4.1(b)(ii), prior to the issuance of a Grading Permit and Take Authorization for each phase of the Covered Project, Skyranch Altec shall deposit with Pittsburg, for the express benefit of Pittsburg and the Conservancy, an adequate and satisfactory security in the amount of 55% of the development fee Development Fee allocated to such phase in 2019 Dollars. The security may be a rated transferable rated bond or bonds by one or more duly authorized corporate sureties or an irrevocable standby letter of credit, as determined by SkyranchAltec, in a form approved in advance in writing by the Pittsburg and the Conservancy, which approval shall not be unreasonably withheld or unduly delayed. Skyranch Altec shall ensure that the full amount of the security required by this Section 4.2(c4.1(c) shall remain in effect until Skyranch Altec has fulfilled its obligations under Section 4.2(b)(ii4.1(b)(ii). The Parties shall cooperate with Skyranch Altec by promptly signing any necessary documentation requested should Skyranch Altec seek to reduce and/or release the bond as the fees under Section 4.2(b)(ii4.1(b)(ii) above are paid. However, any reduction in bond amounts shall account for adjustment of the remaining fees to be paid such that the remaining bond amount stays proportionate with the number of building permits not yet issued.