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Page 30 retains all rights to pursue any legal remedies against the Contractor. All insurance policies must be open to inspection by the State, and copies of policies must be submitted to the State’s authorized representative upon written request. 22.FINANCIAL GUARANTEE (ESCROW ACCOUNTS AND LETTERS OF CREDIT) This Contract shall not be in effect until Contractor has funded an escrow account or provided, at no cost to the City, an irrevocable letter of credit or other financial guarantee acceptable to the City Attorney, such as a performance bond, in the sum of $250,000 for the benefit of the City. The escrow account, letter of credit, or other financial guarantee shall be held by a United States bank authorized to do business in the State of Minnesota to secure the faithful performance of this Contract by Contractor, conditioned that Contractor shall well and truly perform and carry out the covenants, terms, and conditions of the Contract in strict accordance with its provisions, and shall not be cancelable during the term of this Contract. The form and content of the performance bond, letter of credit or escrow agreement shall be in a form approved by the parties, and shall be in place for the entire duration of this Contract. The City shall be able to draw upon the letter or credit or escrow account if it follows the procedures set forth below, even if there is a dispute as to whether there has been an act or omission that would entitle the City to draw upon the letter of credit or escrow account. Whenever the City draws upon the letter of credit or escrow account and the payment is not disputed, the Contractor shall replenish the letter of credit or escrow account to its full original value within ten (10) business days after the Contract has been tendered delivery by certified mail, return receipt requested, of the City’s request for payment. If the Contractor fails to pay the City after thirty (30) business days’ notice of imposition of liquidated damages, or fails to repay the City within thirty (30) business days of any damages, costs, or expenses which the City incurs as a result of the Contractor’s failure to fulfill its obligations, the City may immediately request and receive payment of the amount thereof from the financial institution holding the letter of credit or escrow account, and upon making such request for payment, the City shall notify the Contract or the amount and date thereof. The rights reserved to the City with respect to the letter of credit or escrow account are in addition to all other rights of the City, and no action. proceeding or exercise of a right with respect to such letter of credit or escrow account shall affect any other right the City may have. If the City draws on a letter of credit or escrow account in error, or if through negotiation, mediation, court action, or other resolution of the dispute it is determined that all or a portion of the draw should be refunded, the City shall refund such amount within ten (10) business days. 23.NON-DISCRIMINATORY PRACTICES Minnesota Statutes, Section 181.59, which prohibits discrimination on account of race, creed, or color in the performance of public contracts, is made a part of this request with the same force and effect as if set out herein verbatim. 145