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<br />20 <br />LA515\147\1015204.v1 <br />LA515\147\1015204.v1 <br />29. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the <br />terms of this Agreement, payment of special assessments, payment of the costs of all Subdivision <br />Improvements, and construction of all Subdivision Improvements, the Developer shall furnish the <br />City with an irrevocable letter of credit or a cash escrow or a combination of a cash escrow and <br />letter of credit (the “Security") in the amount of $_________. The bank originating the letter of <br />credit shall be determined by the City to be solvent and creditworthy. The letter of credit shall <br />substantially be in the form attached to this Agreement and must be approved by the City. The <br />amount of the Security was calculated as itemized on Exhibit B. If at any time the City reasonably <br />determines that the bank issuing the letter of credit no longer satisfies the City’s requirements <br />regarding solvency and creditworthiness, the City shall notify the Developer and the Developer <br />shall provide to the City within forty-five (45) days a substitute for the letter of credit from another <br />bank meeting the City’s requirements. If the Developer fails to provide the City within forty-five <br />(45) days with a substitute letter of credit from an issuing bank satisfactory to the City, the City <br />may draw under the existing letter of credit. <br />This breakdown is for historical reference; it is not a restriction on the use of the Security. <br />The City may draw down the Security, without notice for any violation of the terms of this <br />Agreement or if the Security is allowed to lapse prior to the end of the required term. If the required <br />Subdivision Improvements are not completed at least thirty (30) days prior to the expiration of the <br />Security, the City may also draw it down. If the Security is drawn down, the proceeds shall be <br />used by the City to cure the default. <br />30. REDUCTION OF SECURITY. Upon written request by the Developer and upon receipt <br />of proof satisfactory to the City Engineer that work has been completed in accordance with the <br />approved Plans and the terms of this Agreement and that all financial obligations to the City have <br />been satisfied, the City Engineer may approve reductions in the Security in the following <br />instances: