§ 22-128. Cash deposit and performance and payment letter of credit.

(a)

As security to the village for the performance by the developer of the developer's obligations (i) to construct and complete the public improvements, (ii) to pay all required village fees, costs and expenses, (iii) to maintain and repair streets, sidewalks and other public property, (iv) to restore property, and (v) to otherwise faithfully perform the developer's undertakings, the developer shall deposit with the village administrator cash (the "cash deposit") and a letter of credit (the "performance and payment letter of credit"), in a total amount equal at least to the sum of all amounts the village reasonably anticipates will become due to the village for required fees, costs, and expenses within the following three-month period plus either one hundred twenty-five (125) percent of the approved estimate of all costs of the required public improvements or, in cases where executed contracts for construction and installation of a public improvement have been filed with the village clerk, one hundred ten (110) percent of the amount of such contracts.

(b)

The cash deposit shall, at all times until released or reduced as provided by this section, be maintained at not less than ten (10) percent of the total deposit required by this section.

(c)

At any time after satisfactory completion of fifty (50) percent of the public improvements, as determined by the village engineer, the board of trustees may reduce the amount of the required cash deposit in its sole and absolute discretion.

(d)

The cash deposit and the performance and payment letter of credit shall be maintained and renewed by the developer, and shall be held in escrow by the village, until approval and, where appropriate, acceptance of the public improvements by the village and the posting of all guaranty letters of credit required by section 22-129 of this chapter. After such acceptance and posting, the village shall release the performance and payment letter of credit and any amounts remaining in the cash deposit.

(Ord. No. 96-0-14, § 2(22-702), 3-14-96)