Common use of Security for Performance Required Clause in Contracts

Security for Performance Required. (1) To guarantee the satisfactory installation of the required improvements and as a condition of approval of the plat or certified survey map, the subdivider shall furnish to the Village an irrevocable letter of credit in a form acceptable to the Village and in an amount equal to one hundred twenty-five percent (125%) of the estimated cost of all required improvements as determined by the Village Engineer. If staging is permitted, the amount and duration of the security shall be determined in accordance with Subsection (b)(2). (2) The subdivider may construct the project in such phases as the Village Board approves, which approval may not be reasonably withheld. If the subdivider’s project will be constructed in phases, the amount of any letter of credit required by the Village Board shall be limited to the phase of the project that is currently being constructed. The Village Board may not require that the subdivider provide any security for improvements sooner than is reasonably necessary before the commencement of the installation of the improvements for the particular phase. (3) The security shall guarantee that all required improvements shall be made and installed according to the agreement with the Village and Village specifications by the subdivider or its contractors not later than eighteen (18) months from the date that the plat is recorded or such earlier date as required in the agreement with the Village. (4) The security shall be used, applied and released pursuant to § 14.88.

Security for Performance Required. (1) To guarantee the satisfactory installation of the required improvements and as a condition of approval of the plat or certified survey map, the subdivider shall furnish to the Village an irrevocable letter of credit in a form acceptable to the Village and in an amount equal to one hundred twenty-twenty- five percent (125%) of the estimated cost of all required improvements as determined by the Village Engineer. If staging is permitted, the amount and duration of the security shall be determined in accordance with Subsection (b)(2). (2) The subdivider may construct the project in such phases as the Village Board approves, which approval may not be reasonably withheld. If the subdivider’s project will be constructed in phases, the amount of any letter of credit required by the Village Board shall be limited to the phase of the project that is currently being constructed. The Village Board may not require that the subdivider provide any security for improvements sooner than is reasonably necessary before the commencement of the installation of the improvements for the particular phase. (3) The security shall guarantee that all required improvements shall be made and installed according to the agreement with the Village and Village specifications by the subdivider or its contractors not later than eighteen (18) months from the date that the plat is recorded or such earlier date as required in the agreement with the Village. (4) The security shall be used, applied and released pursuant to § 14.88.