Common use of Construction Bonds Clause in Contracts

Construction Bonds. (a) As a condition precedent to the first draw request under the Loan, the Borrower shall deliver to the County copies of labor and material bonds and performance bonds for the construction of the Development in an amount equal to one hundred percent (100%) of the scheduled cost of the construction of the Development. The bonds required under this Section shall be issued by a surety licensed to do business in California and reasonably acceptable to the County. Such bonds must name the County as a co-obligee. (b) The County shall either reasonably approve or disapprove the submitted proposed Construction Bonds within fifteen (15) days from the date the County receives the Construction Bonds. If the proposed Construction Bonds are not approved by the County, then the County shall notify the Borrower in writing of the reasons for disapproval and the required revisions to the previously submitted Construction Bonds. The Borrower shall thereafter submit revised proposed Construction Bonds within fifteen (15) days of the notification of disapproval. The County shall either approve or disapprove the submitted revised Construction Bonds within fifteen (15) days of the date such revised Construction Bonds are received by the County. The County shall approve the initial or revised Construction Bonds if they meet the standards set forth in subsection (a) above. Such County-approved bonds shall be delivered to the County prior to, or in conjunction with, the Closing. (c) Notwithstanding the foregoing, the County shall consider other reasonable forms of security for the completion of the construction of the Improvements, including from either the Borrower or the Borrower's general contractor, in lieu of such Construction Bonds described in this section provided that: (i) the Investor and all lenders set forth on the Approved Financing Plan have agreed to such other security, and (ii) the County has the same enforcement rights under such security as the Investor and all lenders set forth in the Approved Financing Plan.

Construction Bonds. (a) As a condition precedent At least thirty (30) days prior to the first draw request under the LoanClose of Escrow, the Borrower Developer shall deliver to the County copies forms of one (1) labor and material bonds bond and one (1) performance bonds bond for the construction Development issued by a reputable insurance company licensed to do business in California, and named in the current list of "Surety Companies Acceptable on Federal Bonds" as published in the Development Federal Register by the Audit Staff Bureau of Accounts, U.S. Treasury Department, and reasonably acceptable to the County, each in an amount equal to a penal sum of not less than one hundred percent (100%) of the scheduled cost of the construction of the DevelopmentDevelopment for the County's review and approval. The bonds required under this Section shall be issued by a surety licensed to do business in California and reasonably acceptable to the County. Such bonds must name the County as a co-obligee. (b) The . Upon receipt by the County of the proposed payment and performance bonds, the County shall either reasonably promptly review such bonds and approve or disapprove the submitted proposed Construction Bonds them within fifteen (15) days from if they satisfy the date criteria set forth above, and include any other modification reasonably requested by the County receives the Construction BondsCounty. If the proposed Construction Bonds payment and performance bonds are not approved by the County, then the County shall set forth in writing and notify the Borrower in writing Developer of the County's reasons for disapproval and the required revisions to the previously submitted Construction Bondswithholding such approval. The Borrower Developer shall thereafter submit revised payment and performance bonds for County approval, which approval shall be granted or denied in fifteen (15) days in accordance with the criteria and procedures set forth above. Failure of the County to respond within the fifteen (15) day period(s) set forth above shall be deemed approval by the County. (b) Notwithstanding subsection (a) above, the Developer may propose an alternate form of security to ensure performance and payment of labor and materials, which provides security equivalent to the bonds required under subsection (a). The proposed Construction Bonds forms evidencing the alternate form of security shall be delivered to the County at least sixty (60) days prior to Close of Escrow, and the County shall review such forms within fifteen (15) days and determine in its sole discretion whether the alternate form of security is equivalent to the notification bonds required under subsection (a). If the alternate form of disapproval. The County shall either approve or disapprove the submitted revised Construction Bonds within fifteen (15) days of the date such revised Construction Bonds are received security is not approved by the County. The , the County shall approve the initial or revised Construction Bonds if they meet the standards set forth in writing and notify the Developer of the County's reasons for withholding such approval, and the Developer shall provide the bonds required by subsection (a) above. Such County-approved bonds shall be delivered to the County prior to, or in conjunction with, the Closing). (c) Notwithstanding Prior to the foregoingClose of Escrow, the Developer shall deliver to the County shall consider other reasonable forms copies of actually issued bonds or alternate form of security for substantially identical to the completion of the construction of the Improvements, including from either the Borrower or the Borrower's general contractor, in lieu of such Construction Bonds described in this section provided that: (i) the Investor and all lenders set forth on the Approved Financing Plan have agreed to such other securityforms previously delivered to, and (ii) approved by, the County has County. The Developer may elect to satisfy the same enforcement rights under such security as the Investor and all lenders obligation set forth in this Section 3.8 by delivering bonds which name the Approved Financing PlanDeveloper's general contractor(s), and not the Developer, as the principal. Only upon County receipt of such bonds or alternate form of security shall the pre-disposition conditions of this Section 3.8 be deemed met. If such bonds or alternate form of security are not received within the time set forth above, this Agreement may be terminated pursuant to Article 6.