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25 <br />LA515\150\1011808.v2 <br />creditworthy. The letter of credit shall substantially be in the form attached to this Agreement and <br />must be approved by the City. The amount of the Security was calculated as itemized on Exhibit <br />B. If at any time the City reasonably determines that the bank issuing the letter of credit no longer <br />satisfies the City’s requirements regarding solvency and creditworthiness, the City shall notify the <br />Developer and the Developer shall provide to the City within forty-five (45) days a substitute for <br />the letter of credit from another bank meeting the City’s requirements. If the Developer fails to <br />provide the City within forty-five (45) days with a substitute letter of credit from an issuing bank <br />satisfactory to the City, the City 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This breakdown is for historical reference; it is not a restriction on the use of the Security.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 />public Subdivision Improvements are not completed at least thirty (30) days prior to the expiration <br />of the Security, the City may also draw it down. If the Security is drawn down, the proceeds shall <br />be used by the City to cure the default. <br />35. 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: <br />A. Upon completion of grading operations, including temporary site restoration. The <br />Developer must submit an as-built grading survey to the City that at a minimum <br />establishes the as-built grades at all lot corners and downstream drainage conveyance <br />systems and storm water ponds. Upon inspection of the site and approval of the as-built <br />survey by the City, the City may release 100 percent, or $________________________, <br />of the Security associated with subdivision grading. This Security reduction does not <br />include amounts related to erosion and sedimentation control.