Common use of Improvement Security Clause in Contracts

Improvement Security. Concurrently with the execution hereof, Developer shall deposit with City an adequate and satisfactory improvement security ("Improvement Security") in accordance with the provisions of this Section. The Improvement Security shall be in one or more of the forms set forth in Section 17.32.020(D) of the Lancaster Municipal Code, shall be subject to the City Engineer's approval, and shall include the following: (1) security in an amount equal to at least one hundred percent (100%) of the estimated cost of Improvements as security for the faithful performance of this Agreement and (2) separate security in an amount equal to at least fifty percent (50%) of the estimated cost of Improvements as security for the payment of all persons performing labor and furnishing materials in connection with this Agreement. Notwithstanding the foregoing, security in the form of a bank set aside letter approved by the City shall be in the amount of at least one hundred percent (100%) of the estimated cost of Improvements. If, at any time after deposit of the Improvement Security, a surety on such security is no longer acceptable to the City, Developer agrees to replace the Improvement Security with an acceptable Improvement Security within ten days after receiving notice that said surety is unacceptable. The City Engineer may approve/disapprove any Developer requests for substitution of the Improvement Security in his or her sole discretion.