Security for DP Improvements and Erosion Control. No demolition permit will be issued for the area of the DP until an erosion control plan, a stormwater management plan, and a phasing plan is approved by the Town Engineer and surety for erosion control is posted in accordance with Section 2.2 of this Agreement above. Notwithstanding the foregoing condition for certificate of occupancy, if adverse weather or other conditions beyond the control of the Developer prevents installation of landscaping improvements or other DP Improvements depicted on the DP, a temporary certificate of occupancy (“TCO”) may be issued upon the Developer depositing surety in the form of a letter of credit acceptable to the Town for an amount equal to 115% of the estimated cost of the DP Improvements which are remaining to be completed (the “Performance Security”). The letter of credit shall substantially conform to the sample letter of credit attached hereto as Exhibit C and incorporated herein. The letter of credit shall be issued by a bank, or other entity as approved by the Town, maintaining an office or corresponding bank within 50 miles of the Town, which shall have a current rating of 125 or better from IS Financial Services, Inc. unless otherwise approved in writing by the Town Administrator. The letter of credit shall have an expiry date no earlier than one year from the time of issuance and shall provide that it may be drawn upon from time to time by the Town in such amount or amounts as the Town may designate as justified, such amounts not to exceed, in the aggregate, the amount of the letter of credit. Draws under any such letter of credit shall be by a certificate signed by the Town Administrator or his/her designee stating that the Town is entitled to draw the specified amount under the terms of this Agreement.
