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The subdivider shall obtain a security bond from a surety bonding company authorized to do business in the state. The bond shall be payable to the city and shall be in an amount to cover the entire cost, as estimated by the subdivider and approved by the City Engineer of installing all contracted improvements. The duration of the bond shall be until the time as the improvements are accepted by the city.
(Prior Code, § 11.3)
(A) The subdivider shall deposit cash, or other instrument readily convertible into cash at face value, either with the city or in escrow with a bank. The use of any instrument other than cash, and in the case of an escrow account, the bank with which the funds are to be deposited shall be subject to the approval of the City Council. The amount of the deposit shall be at least equal to the cost, as estimated by the subdivider and approved by the City Engineer, of installing all required improvements.
(B) In the case of an escrow account, the subdivider shall file with the City Council an agreement between the financial bank and himself or herself guaranteeing the following:
(1) The funds of the escrow account shall be held in trust until released by the City Council and may not be used or pledged by the subdivider as security in any other matter during that period; and
(2) In the case of a failure on the part of the subdivider to complete the improvements, then the bank shall immediately make the funds in the account available to the city for use in the completion of those improvements.
(Prior Code, § 11.4)
(A) Where a subdivision is to be developed in several sections, the City Council may, at its discretion, waive the use of a guarantee on the initial sections; provided that, the sections may not be larger than 25 lots or 50% of the total number of lots in the subdivision, whichever is less. The City Council shall grant final plat approval for each succeeding section being contingent upon completion of all contracted improvements in each preceding section, and acceptance of those improvements in accordance with this section.
(B) Completion of improvements in the final plat section of the subdivision, which shall include at least 25 lots or 50% of the total number of lots in the subdivision, whichever is less, must be guaranteed through the use of one of the other methods detailed under this section of this regulation.
(Prior Code, § 11.5)
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