Common use of Substituted Security Clause in Contracts

Substituted Security. In accordance with Section 22300 of the Public Contract Code, the Director will, at the request and expenseof the Contractor, accept securities equivalent to any amount withheld by the County to ensure performance under this Contract, including, but not limited to, the amount withheld under Articles 5 and 8 of the Contract. Such substituted security must meet the requirements of said Section 22300 and shall be deposited with a California or federally chartered bank as escrow agent. The security shall be held by the escrow agent subject to a written escrow agreement between County, Contractor, and escrow agent, which agreement shall be in a form substantially similar to that contained in Public Contract Code, Section 22300.