Common use of DEPOSIT; PERFORMANCE LETTER OF CREDIT Clause in Contracts

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Dollars ($00), which amount is ten percent (10%) of the Purchase Price (the “Initial Deposit”). If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement Agent. 2.2.2 At Closing, Developer shall deliver to District an amount of money equal to the lesser of either: (i) 5% of the Project Budget, or (ii) Two Hundred Fifty Thousand Dollars ($250,000), in the form of any of the following: a letter of credit from a reputable bank in accordance with the Form Letter of Credit, a payment and performance bond from a reputable surety company, or a cash reserve to be held in escrow by the Settlement Agent (the “Performance Bond”). If the Developer shall provide a payment and performance bond, such bond shall be: (i) in an amount that is one hundred percent (100%) of the cost of the Improvements as shown on the Project Budget, (ii) be issued by an entity satisfactory to the District, (iii) be in form and substance satisfactory to the District, and (iv) name the District as an obligee. District shall hold the Performance Bond to secure Developer’s performance of the obligations contained in, and in accordance with, the Declaration. 2.2.3 If the Developer shall fail to pay any portion of the Initial Deposit by the Initial Deposit Due Date, this Agreement shall automatically terminate and any portion of the Initial Deposit including any accrued interest which had been paid shall be immediately released to the District. If the portion of the Initial Deposit is evidenced as a letter of credit, the District shall have the immediate right to draw all funds under such letter of credit. Upon termination of the Agreement in accordance with this provision, the Parties shall have no further rights or obligations with respect to each other or this Agreement.

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Dollars ($00), which amount is ten percent (10%) of the Purchase Price Assessed value of the Property (the “Initial Deposit”). If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement Agent. 2.2.2 At Closing, Developer shall deliver to District an amount of money equal a deposit to the lesser of either: (i) 5% secure Developer’s performance of the Project Budgetobligations contained in, or and in accordance with, the Declaration (ii) Two Hundred Fifty Thousand Dollars ($250,000the “Performance Bond”), . The Performance Bond can be in the form of any of the following: (a) a letter of credit from a reputable bank bank, in accordance with the Form Letter of Credit, in the amount of one hundred percent (100%) of the cost of the Improvements as shown on the Project Budget, or (b) a payment and performance bond from a reputable surety company, or a cash reserve to be held in escrow by the Settlement Agent (the “Performance Bond”). If the Developer shall provide a payment ; and performance bond, such bond shall be: (i) in an amount that is one hundred percent (100%) of the cost of the Improvements as shown on the Project Budget, (ii) be issued by an entity satisfactory to the District, (iii) be in form and substance satisfactory to the District, and (iv) name the District as an obligee. District shall hold , or (c) a cash reserve in the Performance Bond to secure Developer’s performance amount of twenty percent (20)% of the obligations contained in, and cost of the Improvements as shown on the Project Budget to be held in accordance with, escrow by the DeclarationSettlement Agent. . . 2.2.3 If the Developer shall fail to pay any portion of the Initial Deposit by the Initial Deposit Due Date, this Agreement shall automatically terminate and any portion of the Initial Deposit including any accrued interest which had been paid shall be immediately released to the District. If the portion of the Initial Deposit is evidenced as a letter of credit, the District shall have the immediate right to draw all funds under such letter of credit. Upon termination of the Agreement in accordance with this provision, the Parties shall have no further rights or obligations with respect to each other or this Agreement.

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Three Thousand Dollars ($00$ ), which amount is ten percent (10%) of the Purchase Price (the “Initial Deposit”). If the The Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit s shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with returned to the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement AgentDeveloper upon Closing. 2.2.2 At Closing, Developer shall deliver to District an amount of money equal to the lesser of either: (i) 5% of the Project Budget, or (ii) Two Hundred Fifty Thousand Dollars ($250,000)not less than $ , in the form of any of the following: 1) a letter of credit from a reputable bank in accordance with the Form Letter of CreditCredit - Exhibit F, 2) a payment and performance bond from a reputable surety company, or 3) a cash reserve to be held in escrow by the Settlement Agent (the “Performance Bond”). If Provided however, if the Developer shall provide a payment and performance bond, such bond shall be: (i) in an amount that is one hundred percent (100%) of the cost of the Improvements as shown on the Project Budget, (ii) be issued by an entity satisfactory to the District, (iii) be in form and substance satisfactory to the District, and (iv) name the District as an obligee. District shall hold the Performance Bond to secure Developer’s performance of the obligations contained in, and in accordance with, the Declaration. 2.2.3 If the Developer shall fail to pay any portion of the Initial Deposit by the Initial Deposit Due Date, this Agreement shall automatically terminate and any portion of the Initial Deposit including any accrued interest which had been paid shall be immediately released to the District. If the portion of the Initial Deposit is evidenced as a letter of credit, the District shall have the immediate right to draw all funds under such letter of credit. Upon termination of the Agreement in accordance with this provision, the Parties shall have no further rights or obligations with respect to each other or this Agreement.

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Dollars ($00), which amount is ten percent (10%) of the Purchase Price (the “Initial Deposit”). If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement Agent. 2.2.2 At Closing, Developer shall deliver to District an amount of money equal to the lesser of either: (i) 5% of the Project Budget, or (ii) Two Hundred Fifty Thousand Dollars ($250,000), in the form of any of the following: a letter of credit from a reputable bank in accordance with the Form Letter of Credit, a payment and performance bond from a reputable surety company, or a cash reserve to be held in escrow by the Settlement Agent (the “Performance Bond”). If the Developer shall provide a payment and performance bond, such bond shall be: (i) in an amount that is one hundred percent (100%) of the cost of the Improvements as shown on the Project Budget, (ii) be issued by an entity satisfactory to the District, (iii) be in form and substance satisfactory to the District, and (iv) name the District as an obligee. District shall hold the Performance Bond to secure Developer’s performance of the obligations contained in, and in accordance with, the Declaration. 2.2.3 If the Developer shall fail to pay any portion of the Initial Deposit by the Initial Deposit Due Date, this Agreement shall automatically terminate and any portion of the Initial Deposit including any accrued interest which had been paid shall be immediately released to the District. If the portion of the Initial Deposit is evidenced as a letter of credit, the District shall have the immediate right to draw all funds under such letter of credit. Upon termination of the Agreement in accordance with this provision, the Parties shall have no further rights or obligations with respect to each other or this Agreement.