§ 164.183 LETTERS OF CREDIT.
   (A)   Letters of credit posted pursuant to §§ 164.180 through 164.182 of this chapter shall be in a form satisfactory to the Chief Subdivision Engineer.
   (B)   Each letter of credit shall be from a lending institution:
      (1)   Acceptable to the Chief Subdivision Engineer;
      (2)   Having capital resources of at least $10,000,000, or other amount acceptable to the Chief Subdivision Engineer;
      (3)   With an office in the Chicago Metropolitan Area; and
      (4)   Insured by the Federal Deposit Insurance Corporation.
   (C)   Each letter of credit shall, at a minimum, provide that:
      (1)   It shall be fully, irrevocably and unconditionally in effect until the installation and construction of the site improvements are completed and approved by the Chief Subdivision Engineer or for a period not to exceed 15 months, whichever is later. It shall not be canceled without the prior written consent of the Chief Subdivision Engineer and shall not expire without written notification to the Chief Subdivision Engineer at least 45 days prior to expiration;
      (2)   It shall not require the consent of the developer prior to any draw on it by the Chief Subdivision Engineer; and
      (3)   If at any time it will expire within 45 or any lesser number of days, and if it has not been renewed and the renewal submitted to the Chief Subdivision Engineer, and if any applicable obligation of the developer for which its security remains uncompleted or is unsatisfactory, then the Chief Subdivision Engineer may, without notice and without being required to take any further action of any nature whatsoever, call and draw down the letter of credit and thereafter either hold all proceeds as security for the satisfactory completion of all obligations or employ the proceeds to complete all obligations and reimburse the county for any and all costs and expenses, including legal fees and administrative costs, incurred by the county, as the Chief Subdivision Engineer shall determine.
   (D)   If at any time the Chief Subdivision Engineer determines that the funds remaining in the letter of credit are not, or may not be, sufficient to pay in full the remaining unpaid cost of all stormwater facility construction or sediment and erosion control measures, then, within ten days following a demand by the Chief Subdivision Engineer, the developer shall increase the amount of the letter of credit to an amount determined by the Chief Subdivision Engineer to be sufficient to pay such unpaid costs. Failure to so increase the amount of the security shall be grounds for the Chief Subdivision Engineer to draw down the entire remaining balance of the letter of credit.
   (E)   If at any time the Chief Subdivision Engineer determines that the bank issuing the letter of credit is without capital resources of at least $10,000,000, is unable to meet any federal or state requirement for reserves, is insolvent, is in danger of becoming any of the foregoing, or is otherwise in danger of being unable to honor a letter of credit at any time during its term, or if the Chief Subdivision Engineer otherwise reasonably deems the bank to be insecure, then the Chief Subdivision Engineer shall have the right to demand that the developer provide a replacement letter of credit from a bank satisfactory to the Chief Subdivision Engineer. The replacement letter of credit shall be deposited with the Chief Subdivision Engineer not later than ten days following the demand. Upon the deposit, the Chief Subdivision Engineer shall surrender the original letter of credit to the developer.
   (F)   If the developer fails or refuses to meet fully any of its obligations under this chapter then the Chief Subdivision Engineer may, in his or her discretion, draw on and retain all or any of the funds remaining in the letter of credit. The Chief Subdivision Engineer thereafter shall have the right to take any action he or she deems reasonable and appropriate to mitigate the effects of the failure or refusal, and to reimburse the county from the proceeds of the letter of credit for all of its costs and expenses, including legal fees and administrative expenses, resulting from or incurred as a result of the developer’s failure or refusal to fully meet its obligations under this chapter. If the funds remaining in the letter of credit are insufficient to repay fully the county for all costs and expenses, and to maintain a cash reserve equal to the required letter of credit during the entire time the letter of credit should have been maintained by the developer, then the developer shall, upon demand of the Chief Subdivision Engineer therefore, immediately deposit with the Chief Subdivision Engineer additional funds as the Chief Subdivision Engineer determines are necessary to fully repay the costs and expenses and to establish the cash reserve.
(Ord. 10-164, passed 6-17-2010)