Common use of WARRANTY SECURITY Clause in Contracts

WARRANTY SECURITY. The Subdivider understands and agrees that the City will not accept, and therefore, will not maintain any Public Improvements within the identified Subdivision until said Public Improvements are found free of defects for the required Warranty Period, unless prior to any platting the Subdivider executes a Warranty Security in favor of the City for ten percent of the Engineer’s Estimate for the duration of the Warranty Period. The Subdivider shall use the Warranty Security form approved by the City Attorney. Each Warranty Security required by this Agreement shall be secured in favor of the City by one of the following methods: a. Escrow account, b. Letter of irrevocable credit, or c. A bond from a corporate surety licensed and authorized to do business in the State of South Dakota as surety and subject to written approval by the City Engineer which approval shall be at its sole discretion. The Subdivider is not required to provide a warranty for any facilities furnished and installed by the City. However, the cost of the same shall be used for purposes of calculating the ten percent Warranty Security as set forth herein.

WARRANTY SECURITY. The Subdivider understands and agrees that the City will not accept, and therefore, will not maintain any Public Improvements within the identified Subdivision until said Public Improvements are found free of defects for the required Warranty Period, unless prior to any platting the Subdivider executes a Warranty Security in favor of the City for ten percent of the Engineer’s Estimate for the duration of the Warranty Period. The Subdivider shall use the Warranty Security form approved by the City Attorney. Each Warranty Security required by this Agreement shall be secured in favor of the City by one of the following methods: a. : Escrow account, b. , Letter of irrevocable credit, or c. or A bond from a corporate surety licensed and authorized to do business in the State of South Dakota as surety and subject to written approval by the City Engineer which approval shall be at its sole discretion. The Subdivider is not required to provide a warranty for any facilities furnished and installed by the City. However, the cost of the same shall be used for purposes of calculating the ten percent Warranty Security as set forth herein.