In lieu of final completion of the improvements required herein before approval of the final plat, the subdivider shall post a performance bond approved by the City Attorney. Such bond shall insure to the City that improvements will be completed by the subdivider within one year after approval by the Council. The bond amount shall be not less than the estimated cost of completing the improvements and inspections as specified by these regulations, other ordinances, resolutions or regulations of the City, and by the plans and specifications as approved for the preliminary plat. If the improvements are not completed within the specified time, the Council may use the bond or any necessary portion thereof to complete said improvements. Failure of the Council to take action on the bond immediately shall not bar the Council from taking appropriate action within a reasonable time.
1. Letters of Credit. The owner or developer may submit an irrevocable letter of credit in lieu of a performance bond for the improvements. Said letter of credit shall be from any approved bank or savings and loan in a form approved by the City Attorney, which letter, among other things, shall comply with the following requirements:
A. Shall run in favor, of the City;
B. Be in an amount determined by the City Administrator and approved by the Mayor and City Council to be sufficient to complete the improvements and installations in compliance with the regulations set forth in this chapter;
C. Be issued by any approved bank or savings and loan association within the County;
D. Specify that, in the event the owner or developer fails to complete the required improvements and installations within one year of the date of the approval of the plat, the bank or other assuring institution, shall pay to the City, upon demand, a sum sufficient to complete said improvements, or the face amount thereof, whichever amount shall be the lesser.
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