D&V BUILDERS SUBDIVISION AGREEMENT

• , tl I 7. SECURITY. On signing this agreement, the sub- divider shall present to the City and file with the City Clerk, improvement security as defined iri 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 authorised corporate sureties, or c. Instruments of credit from financial insti- tutions subject to regulation by state or federal government: d. Bonds of a duly authorized 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 Clerlc prior 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 faithful performance of this 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 $ 272,000.OQ._!. In event of breach by subdivider, City may take over the work and prosecute 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 be liable to the City for any excess costs or damages suffered by the city. 8. FINANCING. In event City and subdivider enter a contract upon mutually agreeable terms providing that City shall initiate and consummate proceedings under an appropriate special assessment act for financing and improvement of streets -3-