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June 16, 2022 <br />135 <br /> <br />Section 7.03 Improvement Construction Guarantee. <br />(a) In lieu of the construction and completion of the improvements required by this <br />Ordinance prior to recordation, the developer may deposit financial security in an <br />amount sufficient to cover the costs of such improvements or common amenities. Said <br />Improvement Construction Guarantee shall be prepared in accordance with this <br />Ordinance and is subject to the acceptance by the County. The developer shall indicate <br />the intent to provide an Improvement Construction Guarantee by executing the <br />applicable Memorandum of Understanding to be submitted as stipulated at the time <br />application is made for approval of a Final Plat by the Board of County Commissioners. <br />(b) The administration of Improvement Construction Assurances shall comply with the <br />provisions of this Article and other applicable laws of the state. <br />(c) All guarantees shall be prepared by the developer in the form required by the County. <br />(d) Form of Financial Security. The following are acceptable forms of guarantees. All other <br />forms of guarantees must be individually approved by the County Commission. <br />1. Surety Performance Bond. A security bond from a surety bonding company authorized to do <br />business in the North Dakota. The bond shall be payable to the County. <br />2. Escrow Account. A deposit of cash in escrow with a Federal or state chartered financial <br />institution. The developer shall file, with the County, an agreement between the financial <br />institution and himself guaranteeing the following: <br />a. That the funds of said escrow account shall be held in trust until released by the <br />County and may not be used or pledged by the developer as security in any other <br />matter during that period. <br />b. In the case of a failure on the part of the developer to complete said improvements, <br />the institution shall immediately make the funds in said account available to the <br />County for use in the completion of those improvements. <br />3. Letter of Credit. An irrevocable commercial letter provided by the developer from a Federal <br />or state chartered financial institution or other reputable institution. This letter shall be <br />deposited with the County and shall certify the following: <br />a. The amount of credit. <br />b. In case of failure on the part of the developer to complete the specified <br />improvements within a time period specified in a written agreement between the <br />County the creditor shall pay to the County immediately and without further action, <br />upon presentation of a sight draft drawn on the issuing lending institution in an <br />amount to which the County is entitled, or upon presentation of the original letter <br />of credit, such funds as are necessary to finance the completion of those <br />improvements, up to the limit of credit stated in the letter. <br />c. In case of failure on the part of the developer to complete the specified <br />improvements within a time period specified in a written agreement between the <br />County the creditor shall pay to the County immediately and without further action, <br />upon presentation of a sight draft drawn on the issuing lending institution in an <br />amount to which the County is entitled, or upon presentation of the original letter