Security for Authorized Improvements. Prior to completion and conveyance to the City of any Authorized Improvements, the Developer shall cause to be provided to the City a maintenance bond in the amount required by the City's subdivision regulations for applicable Authorized Improvements, which maintenance bond shall be for a term of two years from the date of final acceptance of the applicable Authorized Improvements. Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that legal counsel for the City has the right to reject any surety company regardless of such company’s authorization to do business in Texas. Nothing in this Agreement shall be deemed to prohibit the Developer or the City from contesting in good faith the validity or amount of any mechanics or materialman’s lien and/or judgment nor limit the remedies available to the Developer or the City with respect thereto so long as such delay in performance shall not subject the Authorized Improvements to foreclosure, forfeiture, or sale. In the event that any such lien and/or judgment with respect to the Authorized Improvements is contested, the Developer shall be required to post or cause the delivery of a surety bond or letter of credit, whichever is preferred by the City, in an amount reasonably determined by the City, not to exceed one hundred twenty percent (120%) of the disputed amount.
Security for Authorized Improvements. (a) Prior to receiving any reimbursement pursuant to Section 3.02, The the Developer shall provide to the City, on or before February 16, 2016, a promissory note in the amount of $2,700,000.00 (the “Promissory Note”) payable to the City, which Promissory Note shall only be paid to the City if the Developer sells its portion of the PID Property in its entirety (it is anticipated that the Developer will sell lots and parcels in the normal course of Development, from time to time) to a non-related entity prior to the PID Property reaching at least $92,000,000.00 in taxable assessed value, or this Agreement is terminated by the City and the Developer does not refund the $2,700,000.00 to the City as provided for in Section 8.02(b)(ii) below. Once the PID Property reaches at least $92,000,000.00 in taxable assessed value, the Authorized Improvements are Substantially Completed, and the Promissory Note has not been redeemed, the Promissory Note shall be returned uncollected to the Developer.
(b) The Promissory Note shall include a personal guaranty by Xxxxxxx Xxxxxxx for a specific term as provided for in the Promissory Note agreeing to pay the full amount of the Note in the event the Developer fails to make such required payment.
(c) The Promissory Note shall further grant to the City a first lien in the amount of $2,700,000.00 on the parcels described as Blocks R, S, and T on Exhibit D. The lien shall be further secured by a deed of trust (the “Deed of Trust”) in the form attached hereto as Exhibit E.
Security for Authorized Improvements. Prior to Final Completion and conveyance to the City of an Authorized Improvement, including a segment, section or portion thereof, the Developer shall provide to the City a maintenance bond in the amount of 100% of the value of each Authorized Improvement constructed by Developer, which maintenance bond shall be for a term of two years from the date of final acceptance of such Authorized Improvement. Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that the City, through the City Attorney, shall retain the right to reject any surety company as a surety for any work hereunder regardless of such company’s authorization to do business in Texas. The Developer shall construct or cause to construct the Authorized Improvements in accordance with the City established ordinances, regulations, specifications, and the Development Agreement. The Developer shall, however, provide an “all bills paid” affidavit, when submitting a Certificate for Payment, in the standard form, as provided by the City, and shall also provide such supporting documentation as required by the City, that affirms that all invoices and bills were paid for the Authorized Improvements.
Security for Authorized Improvements. The Developer shall provide to the City, on or before February 16, 2016, a promissory note in the amount of $2,700,000.00 (the “Promissory Note”) payable to the City, which Promissory Note shall only be paid to the City if the Developer sells its portion of the PID Property in its entirety (it is anticipated that the Developer will sell lots and parcels in the normal course of Development, from time to time) to a non-related entity prior to the PID Property reaching at least $92,000,000.00 in taxable assessed value, or this Agreement is terminated by the City and the Developer does not refund the $2,700,000.00 to the City as provided for in Section 8.02(b)(ii) below. Once the PID Property reaches at least $92,000,000.00 in taxable assessed value, the Authorized Improvements are Substantially Completed, and the Promissory Note has not been redeemed, the Promissory Note shall be returned uncollected to the Developer.
