Common use of Financial Security Guarantee Clause in Contracts

Financial Security Guarantee. As security to the County for the performance by the Developer of its obligations to complete the Required Improvements in accordance with this Agreement, the Developer shall, prior to the commencement of construction of the Required Improvements, obtain financial security in favor the County meeting the requirements of Teton County Code ⸹9-4-2(c-2), in the sum of one hundred and twenty-five percent (125%) of the engineer’s cost estimate for the Required Improvements approved by the Teton County Board of County Commissioners and attached hereto as Exhibit C, which engineer’s cost estimate shall be revised and updated within ninety (90) days of securing the financial guarantee, by one of the following three methods: Obtain from a County-approved financial institution authorized to do business in the State of Idaho an irrevocable 12 month letter of credit with guaranteed extensions as needed until the Required Improvements are completed and accepted by the County. Make a cash deposit into a Teton County escrow account funds in the form of a certified check or cash. The county shall maintain any interest accrued; or Obtain a negotiable construction or development bond from a County-approved bonding company for a term of not less than 12 months with guaranteed extensions as needed until the Required Improvements are completed and accepted by the County. The County will not issue the Construction Permit permitting commencement of construction of the Required Improvements until it has received a satisfactory financial guarantee. Following issuance of the Certificate of Subdivision Completion, the County shall release the Developer’s financial guarantee; provided, however, ten percent (10%) of the original approved engineer’s cost estimate for the Required Improvements shall be provided in one of the three methods presented above in this Section for the entire warranty period described in Section 12 to guarantee the correction of any defects or deficiencies in the Required Improvements.