§ 22-129. Guaranty letter of credit.

(a)

As a condition of the village's approval and, where appropriate, acceptance of any of the public improvements, the developer shall post a new letter of credit in the amount of five (5) percent of the actual total cost of such improvements as security for the satisfactory correction, repair or replacement of any defect or deficiency in such improvements as required by section 22-126 of this chapter (the "guaranty letter of credit"). The guaranty letter of credit shall be held by the village in escrow until the end of the applicable guaranty period or until two (2) years after the proper correction, repair or replacement of any defect or deficiency in the public improvements and payment therefor, whichever occurs later.

(b)

If the village is required to draw on the guaranty letter of credit by reason of the developer's failure to fulfill its obligations, then the developer shall within ten (10) days thereafter cause the guaranty letter of credit to be increased to its full original amount.

(Ord. No. 96-0-14, § 2(22-703), 3-14-96)