Common use of Maintenance Bond Clause in Contracts

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water System until the same is accepted by the District in writing; provided however, that upon acceptance of the Water System by the District the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District to ensure that the Water System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one (1) year from the date of acceptance of the Water System by the District the Water System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year shall be in the amount of twenty percent (20%) of the estimated cost of the Water System but not less than $5,000 or approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, b. If after the first year but within three (3) years from the date of acceptance of the Water System by the District, the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one (1) to the end of year three (3) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, c. In the event that the Developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District transfers title of the Water System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District may accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water System improvements.

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water Sewer System until the same is accepted by the District in writing; provided however, that upon acceptance of the Water Sewer System by the District the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District to ensure that the Water Sewer System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one three (13) year years from the date of acceptance of the Water Sewer System by the District the Water Sewer System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year shall be in the amount of twenty percent (20%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, b. If after the first year but within three six (36) years from the date of acceptance of the Water Sewer System by the District, the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water Sewer System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one three (13) to the end of year three six (36) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, c. In the event that the Developer a developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District transfers title of the Water Sewer System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District may will accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water Sewer System improvements.

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water Sewer System until the same is accepted by the District in writing; provided however, that upon acceptance of the Water Sewer System by the District the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District to ensure that the Water Sewer System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one (1) year from the date of acceptance of the Water Sewer System by the District the Water Sewer System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year shall be in the amount of twenty percent (20%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, b. If after the first year but within three (3) years from the date of acceptance of the Water Sewer System by the District, the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water Sewer System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one (1) to the end of year three (3) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, c. In the event that the Developer a developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District transfers title of the Water Sewer System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District may will accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water Sewer System improvements.

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water System until the same is accepted by the District in writing; provided however, that upon acceptance of the Water System by the District the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District to ensure that the Water System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one three (13) year from the date of acceptance of the Water System by the District the Water System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year shall be in the amount of twenty percent (20%) of the estimated cost of the Water System but not less than $5,000 or approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, b. If after the first year but within three six (36) years from the date of acceptance of the Water System by the District, the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one years three (13) to the end of year three six (36) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the District’s Counsel prior to acceptance thereof. And, c. In the event that the Developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District transfers title of the Water System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District may accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water System improvements.

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water Sewer System until the same is accepted by the District Authority in writing; provided however, that upon acceptance of the Water Sewer System by the District Authority the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District Authority to ensure that the Water Sewer System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one three (13) year years from the date of acceptance of the Water Sewer System by the District Authority the Water Sewer System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year three (3) years shall be in the amount of twenty percent (20%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the DistrictAuthority’s Counsel prior to acceptance thereof. And, b. If after the first year but within three (3) years but within six (6) years from the date of acceptance of the Water Sewer System by the DistrictAuthority, the Developer or any party working on behalf of the Developer shall cause damage to the Water Sewer System or cause any condition by grading or otherwise that would impede proper maintenance of the Water Sewer System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District Authority to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District Authority will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one three (13) to the end of year three six (36) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water Sewer System but not less than $5,000 or as approved by the District Authority’s Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the DistrictAuthority’s Counsel prior to acceptance thereof. And, c. In the event that the Developer a developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District Authority transfers title of the Water Sewer System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District may Authority will accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District A ut ho r i t y at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District Authority shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water Sewer System improvements.

Maintenance Bond. The Developer shall not be relieved of his obligation to maintain the Water System until the same is accepted by the District Authority in writing; provided however, that upon acceptance of the Water System by the District Authority the Developer shall be required to execute a maintenance bond, post a letter of credit or deposit cash pursuant to an escrow agreement with the District Authority to ensure that the Water System is installed properly and that such construction has been performed in a workmanlike manner. The maintenance bond, letter of credit or cash escrow agreement shall provide that: a. If within one three (13) year years from the date of acceptance of the Water System by the District Authority the Water System shall disclose poor workmanship in the execution of said work, or it shall appear that defective materials were utilized therein, or in the event the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. The maintenance bond, letter of credit or cash escrow agreement as required for the first year shall be in the amount of twenty percent (20%) of the estimated cost of the Water System but not less than $5,000 or approved by the District Authority’s Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the DistrictAuthority’s Counsel prior to acceptance thereof. And, b. If after the first year but within three (3) years but within six (6) years from the date of acceptance of the Water System by the DistrictAuthority, the Developer or any party working on behalf of the Developer shall cause damage to the Water System or cause any condition by grading or otherwise that would impede proper maintenance of the Water System, then said maintenance bond, letter of credit or cash escrow agreement shall remain in full force and effect, otherwise to be void. If there are no outstanding work items or payments due, disputes between the parties, or other matter which would cause the District Authority to hold the 20% maintenance bond, letter of credit or cash escrow agreement, then the District Authority will require that the amount of the maintenance bond, letter of credit or cash escrow agreement as required from the end of year one three (13) to the end of year three six (36) shall be decreased to an amount equal to five percent (5%) of the estimated cost of the Water System but not less than $5,000 or as approved by the District Authority’s Engineer. The form and legality of the maintenance bond, letter of credit or cash escrow agreement shall be approved in a consistent manner by the DistrictAuthority’s Counsel prior to acceptance thereof. And, c. In the event that the Developer who has posted a maintenance bond, letter of credit or cash escrow agreement with the District Authority transfers title of the Water System prior to full release of the maintenance bond, letter of credit or cash escrow agreement, the District Authority may accept a replacement maintenance bond, letter of credit or cash escrow agreement from the successor developer in the form, and amount, allowed by the District Authority at the time of property transfer. Upon receipt of the replacement maintenance bond, letter of credit or cash escrow agreement, the District Authority shall release the original maintenance bond, letter of credit or cash escrow agreement in full and release the prior developer from all further obligations with respect to the Water System improvements.