The contract provided for in section 11-9-4 of this chapter shall require the applicant to make an escrow deposit or provide a certified check or irrevocable letter of credit as determined by the city attorney, city engineer and city administrator. The escrow deposit, certified check or irrevocable letter of credit shall conform to the requirements of this chapter.
A. Escrow Deposit; Certified Check: If an escrow deposit or certified check is required, the escrow deposit or certified check shall be made with the city treasurer in a sum equal to the amount calculated as provided in section 11-9-4 of this chapter, as estimated by the city engineer, of all the improvements to be furnished and installed by the applicant pursuant to the contract (developer's agreement), which have not been completed prior to approval of the plat. The total cost shall include costs of inspection by the city. The city shall be entitled to reimburse itself out of said deposit or check for any cost and expense incurred by the city for completion of the work in case of default of the applicant under said contract, and for any damages sustained on account of any breach thereof. Upon completion of the work and termination of any liability, the balance remaining in said deposit or check shall be refunded to the applicant. (Amended Ord. 1988-8, 9-8-1988)
B. Irrevocable Letter Of Credit: If an irrevocable letter of credit is required, it shall be payable to the order of the city and delivered to the city treasurer and city administrator in a sum equal to the amount calculated, as provided in section 11-9-4 of this chapter, as estimated by the city engineer for all the improvements to be furnished and installed by the applicant pursuant to the contract (developer's agreement), which have not been completed prior to the approval of the plat. The total cost shall include costs of inspection by the city. The irrevocable letter of credit must be from a bank which is insured by the FDIC and which has a branch within one hundred (100) miles of the Albertville city hall where the letter of credit can be drawn upon, unless an exception to the one hundred (100) mile limitation is approved by the city council. All letters of credit must automatically renew annually unless the issuing bank sends the city a letter via certified mail at least sixty (60) days prior to expiration notifying the city that the letter of credit will not be renewed upon its stated expiration date. The irrevocable letter of credit shall be approved as to form by the city attorney. (Ord. 2009-010, 6-1-2009)
Notes
| 1 | 1. See also sections 10-1-2 and 10-1-3 of this code. |