Common use of Post-Completion Financial Guarantee Clause in Contracts

Post-Completion Financial Guarantee. a. Unless the Developer has provided it as a part of the financial guarantee required under subsection (A) above, the Developer shall, within five business days of the date of substantial completion, provide a post-completion guarantee bond in a form approved by the Village Attorney and containing the additional provisions noted below. (1) The post completion financial guarantee shall be in an amount totaling 10 percent of the total cost of the completed public improvements plus the estimated amount of any uncompleted public improvements as determined by the Village Director of Engineering and Development. (2) The financial guarantee shall be for a period of fourteen months after the date of substantial completion of the public improvements. (3) The Village shall have access to such funds and the right at its' sole discretion to call or draw upon such funds to correct or repair any defect or deficiency if the Developer fails to honor this guarantee to the satisfaction of the Village. The date the public improvements are considered substantially completed shall be the date as determined by the Director of Engineering and Development that ninety percent of the public improvements by cost are completed and the improvements have been completed to the satisfaction of the Director of Engineering and Development. b. The Village Director Engineering and Development shall give Developer, and the issuer or holder of the aforesaid financial guarantee at least fifteen (15) days' written notice and opportunity to cure or such lesser time as may be called for in the financial guarantee before calling or drawing upon the financial guarantee or acting to correct or repair any defect or deficiency, except that nothing shall preclude the Village in the event of an emergency from acting within a lesser period of time, with or without written notice, to correct or repair any defect or deficiency in any improvement provided pursuant to this Agreement. The Developer agrees for itself and for any contractor it retains to do any work in the development that the Village at its sole discretion shall determine which events constitute an emergency.