Common use of Maintenance Guarantee Clause in Contracts

Maintenance Guarantee. 16.1 The cash deposit or Letter of Credit deposited by the Owner pursuant to Section 15 herein shall, upon the completion of the Primary Services and upon the issuance of Preliminary Certificate of Completion of Primary Services by the Town, be reduced in accordance with Section 15.3. The Town will retain 10% of the original security for Primary Services, in addition to securities for Secondary Services and any other securities or deposits required by this Agreement. The Town will release the remaining security for Primary Services upon expiry of a one (1) year maintenance period and the issuance of the Final Certificate of Completion of Primary Services.