Common use of Required Security Clause in Contracts

Required Security. (a) At the time Developer executes this Agreement, Developer shall furnish to City the following bonds, letters of credit, instruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and satisfying the requirements of the applicable provisions of this Section 4 below (hereinafter “Security Instruments”): (i) A Security Instrument securing Developer’s faithful performance of all of the Works of Improvement (“Faithful Performance Security Instrument”), in the amount of $35,300.00 equal to 100% of the estimated construction cost referenced in Section 1.1. (ii) A Security Instrument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment (“Labor and Materials Security Instrument”) with respect to the Works of Improvement in an amount equal to $17,600.00 equal to 50% of the estimated construction cost referenced in Section 1.1. This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith.

Required Security. (a) At the time Developer executes this Agreement, Developer shall furnish to City the following bonds, letters of credit, instruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and satisfying the requirements of the applicable provisions of this Section 4 below (hereinafter “Security Instruments”): (i) A Security Instrument securing Developer’s faithful performance of all of the Works of Improvement (“Faithful Performance Security Instrument”), in the amount of $35,300.00 7,540,300.00 equal to 100% of the estimated construction cost referenced in Section 1.1. (ii) A Security Instrument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment (“Labor and Materials Security Instrument”) with respect to the Works of Improvement in an amount equal to $17,600.00 3,770,200.00 equal to 50% of the estimated construction cost referenced in Section 1.1. This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith.