Common use of Alternative Security Clause in Contracts

Alternative Security. In lieu of providing the Payment and Performance Bonds, Lessee may provide any of the following alternative security: (i) a completion guaranty, in form and substance reasonably acceptable to Director, made by an individual or entity with a net worth and liquidity that in the good faith judgment of Director is sufficient to comply with the terms of such guaranty in view of the potential financial responsibility involved, (ii) a certificate of deposit, cash or United States governmental security, (iii) a letter of credit, or (iv) other form of security approved by Director. The security described in clauses (ii) through (iv) shall be in an amount equal to one hundred percent (100%) of the construction contract price, and shall permit County to draw thereon to complete the construction of the Improvements if the same have not been completed by Lessee as required pursuant to the terms of this Lease, or if an Event of Default has occurred under this Lease. In addition, Director also shall have the authority to accept in lieu of the Payment and Performance Bonds, so-called “Subguard” insurance in such amount, on such terms and issued by such carrier as approved by Director in Director’s good faith discretion, in combination with such other security, such as a completion guaranty, as acceptable to Director in Director’s good faith discretion. Any alternative security provided by Lessee pursuant to this subsection may name County and Lessee’s construction lender as co-beneficiaries. A condition precedent to Lessee’s right to provide the alternate security described in this Subsection 5.4.4 shall be delivery by Lessee to County of an opinion of counsel from a law firm and in a form acceptable to County to the effect that the construction work does not constitute a public work of improvement requiring the delivery of the bonds described in Subsection 5.4.3 above. Director shall have the authority, in his discretion, to modify, waive or reduce the amount of any bonds or alternate security required hereunder.

Alternative Security. In lieu of providing the Payment and Performance Bonds, Lessee Concessionaire may provide any of the following alternative security: (i) a completion guaranty, in form and substance reasonably acceptable to Director, made by an individual or entity with a sufficient net worth and liquidity that liquidity, in the good faith judgment sole discretion of Director is sufficient Director, to comply with the terms of such guaranty in view of the potential financial responsibility involved, (ii) a certificate of deposit, cash or United States governmental security, (iii) a letter an Irrevocable Stand By Letter of creditCredit, or (iv) other form of security approved by Directora set aside letter from Concessionaire’s construction lender. The security described in clauses clause (ii), (iii) through and (iv) above shall be in an amount equal to one hundred percent (100%) of the construction contract priceprice for hard costs, and shall permit County to draw thereon to complete the construction of the Improvements if the same have not been completed by Lessee as required pursuant to the terms of this Lease, Concessionaire or if an a material Event of Default has occurred under this LeaseContract. In addition, Director also shall have the authority to accept in lieu of the Payment and Performance Bonds, so-called “Subguard” insurance in such amount, on such terms and issued by such carrier as approved by Director in Director’s good faith discretion, in combination with such other security, such as a completion guaranty, as acceptable to Director in Director’s good faith discretion. Any alternative security provided by Lessee Concessionaire pursuant to this subsection may name County and LesseeConcessionaire’s construction lender as co-beneficiaries. A condition precedent to LesseeConcessionaire’s right to provide the alternate security described in this Subsection 5.4.4 5.4.4. shall be delivery by Lessee Concessionaire to County of an opinion of legal counsel from a law firm licensed to practice in the State of California and in a form acceptable to County to the effect that the construction work does not constitute a public work of improvement requiring the delivery of the bonds described in Subsection 5.4.3 5.4.3. above. Director shall have the authority, in his reasonable discretion, to modifyxxxxxx, waive or reduce the amount of any bonds or alternate security required hereunder.

Alternative Security. In lieu of providing the Payment and Performance Bonds, Lessee may provide any of the following alternative security: (i) a completion guaranty, in form and substance reasonably acceptable to Director, made by an individual or entity with a net worth and liquidity that in the good faith judgment of Director is sufficient to comply with the terms of such guaranty in view of the potential financial responsibility involved, (ii) a certificate of deposit, cash or United States governmental security, (iii) a letter of credit, or (iv) other form of security approved by Director. The security described in clauses (ii) through (iv) shall be in an amount equal to one hundred percent (100%) of the construction contract price, and shall permit County to draw thereon to complete the construction of the Improvements if the same have not been completed by Lessee as required pursuant to the terms of this Lease, or if an Event of Default has occurred under this Lease. In addition, Director also shall have the authority to accept in lieu of the Payment and Performance Bonds, so-called “Subguard” insurance in such amount, on such terms and issued by such carrier as approved by Director in Director’s good faith discretion, in combination with such other security, such as a completion guaranty, as acceptable to Director in Director’s good faith discretion. Any alternative security provided by Lessee pursuant to this subsection may name County and LesseeXxxxxx’s construction lender as co-beneficiaries. A condition precedent to LesseeXxxxxx’s right to provide the alternate security described in this Subsection 5.4.4 shall be delivery by Lessee to County of an opinion of counsel from a law firm and in a form acceptable to County to the effect that the construction work does not constitute a public work of improvement requiring the delivery of the bonds described in Subsection 5.4.3 above. Director shall have the authority, in his discretion, to modifyxxxxxx, waive or reduce the amount of any bonds or alternate security required hereunder.

Alternative Security. In lieu of providing the Payment and Performance Bonds, Lessee may provide any of the following alternative security: (i) a completion guaranty, in form and substance reasonably acceptable to Director, made by an individual or entity with a sufficient net worth and liquidity that liquidity, in the good faith judgment sole discretion of Director is sufficient Director, to comply with the terms of such guaranty in view of the potential financial responsibility involved, (ii) a certificate of deposit, cash or United States governmental security, (iii) a letter of credit, or (iv) other form of security approved by Directora set aside letter from Lessee’s construction lender. The security described in clauses clause (ii), (iii) through and (iv) above shall be in an amount equal to one hundred percent (100%) of the construction contract priceprice for hard costs, and shall permit County to draw thereon to complete the construction of the Improvements if the same have not been completed by Lessee as required pursuant to the terms of this Lease, or if an a material Event of Default has occurred under this Lease. In addition, Director also shall have the authority to accept in lieu of the Payment and Performance Bonds, so-called “Subguard” insurance in such amount, on such terms and issued by such carrier as approved by Director in Director’s good faith discretion, in combination with such other security, such as a completion guaranty, as acceptable to Director in Director’s good faith discretion. Any alternative security provided by Lessee pursuant to this subsection may name County and Lessee’s construction lender as co-beneficiaries. A condition precedent to Lessee’s right to provide the alternate security described in this Subsection 5.4.4 shall be delivery by Lessee to County of an opinion of counsel from a law firm and in a form acceptable to County to the effect that the construction work does not constitute a public work of improvement requiring the delivery of the bonds described in Subsection 5.4.3 above. Director shall have the authority, in his reasonable discretion, to modify, waive or reduce the amount of any bonds or alternate security required hereunder.