D&V BUILDERS SUBDIVISION AGREEMENT TRACT 2796

o~ ~laase~t m~it ~1ep~rst wit, v assssMwt~ ~rs~wtt is ~stiaa 1~.~U6 o! Ordiarase ~a~ !~9 ~toote~ 1'i~dis~Or~-~ 7. SECURITY. On signing this agreement, the sub- divider shall present to the City and file with the City Clark, improvement security as defined in Section 11612 of the Business and Professions Code of the State of California. Said improvement security shall consist of the following: a. Cash deposit made with the City, or b. Bonds by duly authorized corporate sureties, or c. Instruments of credit from financial insti- tutions subject to regulation by state or federal government. d. Bonds of a duly a~~thorized surety company covering all or a portion of said improvements required herein where a contract for improve- ments has been let through an assessment district proceedings, and where said bonds have been filed with the City Clerk ~xior to the execution of this agreement, as a part of the existing improvement district proceedings. One bond shall be in an amount of 100% of the total estimated cost conditioned upon faitrful performance of thig agreement, and one bond in the amount of 100% of the total estimated cost shall secure payment for labor and materials. Cash or instruments of credit shall be in an amount not less than 100% of the total estimated cost of improvements. As used herein, the total estimated cost of improvements is as follows : Sum of $ 1~•~•~ In event of breach by subdivider, City may take over the work and prouecute the same to completion by any method the City deems advisable. Said work shall be for the account and at the expense of the subdivider. Subdivider shall bQ liable to the City for any excess costs or damages suffered by ti?e City. 8. FINANCING. In event City and subdivider enter a contract upon mutually agreeable terms providing that City shall initiate and consummate proceedings under 2n appropriate special assessment s.ct for financing and improvement of streets - 3 -