Expiring Development Security Clause Samples
The Expiring Development Security clause defines the conditions under which a security deposit or bond provided by a developer will expire or be released. Typically, this clause specifies the milestones or timeframes after which the security is no longer required, such as upon completion of certain works or after the lapse of a defect liability period. Its core practical function is to ensure that the developer fulfills their obligations while also providing a clear endpoint for the return or expiration of the security, thereby balancing risk and providing certainty for both parties.
Expiring Development Security. In the event that Seller does not extend the Development Security in its full amount, at least 15 (fifteen) days prior to its expiry, CEB may, at any time thereafter, draw upon the Development Security and place the amount so drawn in an escrow account. CEB may only draw amounts from that escrow account in circumstances where it would otherwise be permitted to draw a Development Security under Clauses 3.2.1, 6.2, 8.3.2 and 9.4.1, and Seller shall deposit funds into the escrow account in an amount equal to such permitted drawing within 30 (thirty) Days of such drawing. Until such ▇▇▇▇ ▇▇▇▇▇▇’▇ obligation to provide a Development Security ceases pursuant to Clause 6.3 or Seller provides a Development Security that complies with Clause 6.1.1, the amount standing to the credit of the escrow account shall be immediately released to Seller.