Financial Assurances for East Area Sewer Line Sample Clauses

Financial Assurances for East Area Sewer Line. Owner shall, at the time of issuance of construction permit, secure the estimated costs to construct the sewer line, as described in exhibit C, by the posting of a financial security such as a surety bond, irrevocable letter of credit, or other means acceptable to the City. The amount of initial security shall be in an amount estimated and required by the City Engineer, but shall not exceed the amount of an executed agreement by Owner if the agreement covers the entire scope of construction for the East Area. City agrees to allow for partial release and reduction to the security upon completion of various discrete phases of the sewer line; provided, however that at all times the security shall be in at least an amount necessary to complete the remaining portions of the East Area if a new construction contract had to be issued by the City to complete the remaining portions of the East Area. The owner agrees to maintain a maintenance bond in the amount of ten percent (10%) of the construction cost for a period of 1 year following acceptance of the infrastructure by the City for the purposes of meeting its obligations under Section 4.2.
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