Common use of Security Required Clause in Contracts

Security Required. (a) Developer shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) Developer, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) Developer, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) Developer, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) Developer, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer Owner shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer Owner obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) DeveloperOwner, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) DeveloperOwner, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the DeveloperOwner, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer Owner agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer Owner shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer obtaining permits from the District to construct the sanitary sewer and recycled water Recycled Water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) Developer, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) Developer, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer Owner shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer Owner obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) DeveloperOwner, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) DeveloperOwner, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the DeveloperOwner, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer Owner agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer Owner shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year one‐year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) Developer, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) Developer, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer Owner shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer Owner obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) DeveloperOwner, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) DeveloperOwner, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer Owner fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer Owner in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the DeveloperOwner, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer Owner agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance acknowledgment of completion of the Sanitary Sewer Improvements by the District of District, the sanitary sewer and recycled water improvements the developer Owner shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-one (1) year warranty maintenance period. An acceptable security shall be provided consistent with paragraph 13.b14.b. If no deficiencies are detected at the end of the one (1) year warranty maintenance period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.

Security Required. (a) Developer shall file with the District prior to the date the District signs the Final Map/Parcel Map, and the Improvement Plans and prior to the date of Developer obtaining permits from the District to construct the sanitary sewer and recycled water improvements for the subject property, a good and sufficient improvement security in an amount not less than the estimated cost of the work and improvements for the faithful performance of the terms and conditions of this Agreement and a good and sufficient security for payment of labor and materials equal to the amount of the faithful performance bond to secure the claims to which reference is made in Title 15 of Part 4 of Division 3 of the Civil Code of the State of California (commencing with Section 3082). (b) Acceptable types of security are: (1) A bond or bonds by one or more duly authorized corporate sureties: or (2) A deposit with the District of cash or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit, in a form acceptable to the District's counsel, from an agency of the State, Federal, or local government when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreement are on deposit and guaranteed for payment. (4) A letter of credit, in a form acceptable to the District's counsel, issued by a financial institution that is subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon written demand of the District and that such written demand need not present documentation of any kind as a condition of payment, including proof of loss. (c) Developer, if the improvement security is a bond and if the sureties, either on the Faithful Performance Bond or on the Bond securing payment of Labor and Materials, or both, or the amount of said bonds, in the reasonable opinion of the District becomes insufficient, agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said bonds, or both, within ten (10) business days after being notified by the District that the sureties or amount are insufficient. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all required Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the sureties or the amount of the bonds, or both. (d) Developer, if the improvement security is a deposit or instrument of credit utilizing a deposit, and the deposit in the reasonable opinion of the District becomes insufficient to complete the work, agrees to increase the deposit to an amount that will be sufficient to complete the work within ten (10) business days after being notified by the District that the amount is insufficient and what amount must be deposited. Notwithstanding any other provision herein, if Developer fails to take such action as is necessary to comply with said notice, he shall be in default of this Agreement unless all of the Sanitary Sewer and Recycled Water Improvements are completed within ninety (90) days of the date on which the District notified the Developer in writing of the insufficiency of the deposit. (e) In the event it is deemed necessary to extend the time of completion of the Sanitary Sewer and Recycled Water Improvements, extensions of the time may be granted, from time to time, by the District, either at its own option or upon request of the Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties that have issued the required bonds or other security. Developer ▇▇▇▇▇▇▇▇▇ agrees to maintain the aforesaid bond or bonds or other security in full force and effect during the term of this Agreement, including such extensions of time as may be granted. (f) Upon acceptance by the District of the sanitary sewer and recycled water improvements the developer shall provide security in the amount of 10% of the construction cost of the improvements to guarantee the improvements throughout the one-year warranty period. An acceptable security shall be provided consistent with paragraph 13.b. If no deficiencies are detected at the end of the one year warranty period the maintenance security will be released. (g) All bonds shall be on a form approved by the District which shall be substantially in a form set forth at Section 66499.1 and 66499.2 of the California Government Code.