Common use of Alternative Security Clause in Contracts

Alternative Security. County may, in its sole discretion, allow Contractor to provide alternative security in the amount set forth in Section 13.03, in the form of (a) a prepaid irrevocable standby letter of credit in form and substance satisfactory to County, approved by the County Counsel and issued by a financial institution acceptable to County, or (b) a certificate of deposit in the name of County and in a form and with a term satisfactory to County, accompanied by an agreement giving County the right to draw on the funds deposited satisfactory to County and with a financial institution acceptable to County. Interest on the certificate of deposit will be payable to Contractor.

Alternative Security. County may, in its sole discretion, allow Contractor to provide alternative security in the amount set forth in Section 13.03, in the form of (a) a prepaid irrevocable standby letter of credit in form and substance satisfactory to County, approved by the County Counsel and issued by a financial institution acceptable to County, or (b) a certificate of deposit in the name of County and in a form and with a term Term satisfactory to County, accompanied by an agreement giving County the right to draw on the funds deposited satisfactory to County and with a financial institution acceptable to County. Interest on the certificate of deposit will be payable to Contractor.