Construction Bonds. Prior to the start of the construction, the Developer shall obtain and maintain, or cause to be obtained and maintained, one (1) labor and material bond and one (1) performance bond for construction of the Improvements, each in an amount equal to one hundred percent (100%) of the scheduled cost of construction, or alternative security acceptable to the Authority in its reasonable discretion. Each bond shall name the Authority and MOHCD as co-obligees and shall be issued by a reputable insurance company licensed to do business in California, reasonably acceptable to the Authority and MOHCD. The form of the labor and material bond and the performance bond shall be subject to the prior review and written approval of the Authority and MOHCD, which shall not be unreasonably withheld.
Appears in 2 contracts
Sources: Option to Lease Agreement, Option to Lease Agreement