Common use of Financial Requirements Clause in Contracts

Financial Requirements. (1) As security for the construction and installation of services and for the other obligations of the Owner under this Agreement, the Owner will deposit with the Town before the plan is released for registration, security for performance in an amount equal to one hundred percent of the Owner’s share of the estimated cost of such services as set out in Schedule “J” in the form of: (a) a cash deposit with the Town, or (b) an unconditional irrevocable Letter of Credit in a form acceptable to the Town Treasurer or Deputy Treasurer from a chartered bank also acceptable to the Town Treasurer or Deputy Treasurer, expressed to be pursuant to this Agreement and payable to the Town at any time or in part from time to time, upon the certificate of the Engineer that the Owner is in default under this Agreement. (2) With regard to the electrical distribution system and street lighting, the Owner shall deposit with the Town in cash or by unconditional irrevocable Letter of Credit, before the plan is released for registration, a sum equal to one hundred percent of the total estimated cost of these works as set out in Schedule “F” and shown in Schedule “J”, as security for the performance of these works.