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5. Performance Deposit: E'or the purpose of assuring <br />to the City that the Improvements will be completed according to <br />the terms of this agreement, and that the Developer will pay all <br />claims for work done and materials and supplies furnished, the <br />Developer has deposited with the City at the time of the execution <br />of this agreement, certified funds or an irrevocable letter of credit <br />in a form satisfactory to the City providing that the City is able <br />to draw upon such funds or letter of credit in its sole discretion <br />to complete the Improvements if the Developer fails to satisfactorily <br />complete the work prior to the completion date specified in Section 4 <br />above. The amount of such deposit shall not be reduced before <br />substantial completion of the Improvements. <br />A. Certified Funds - If a certified check is deposited <br />with the City, said check shall be made payable to the <br />City of Orono and shall contain no conditions or time <br />limit for withdrawal by the City. Said check ,3hall be <br />held in security and will not be cashed or deposited <br />except in default )f this agreement. The check will <br />be returned to the developer within sixty (60) days <br />of satisfactory completion of the Improvements. <br />B. Letter of Credit Expiration - If an irrevocable <br />letter of credit is deposited with the City, said <br />letter of credit shall expire no sooner than six <br />months after the completion date specified in <br />Section 4 above, or no sooner than <br />whichever is later. <br />C. Performance Deposit Amount shall 150% of <br />estimated construction cost. <br />Estimated Construction $ 6,000.00 <br />X 150% = Deposit Amount $ 9,000.00 <br />6. Fees and Expenses: The Developer agrees to pay all <br />City fees required per the current City Fee Schedule and further <br />agrees to completely reimburse the City for all the variable additional <br />expenses it incurs ir, regard to the review and approval of the <br />Improvements including, but not limited to, direct City payroll and <br />overhead, costs, and fees paid to consultants and cther professionals. <br />Initials of Developer <br />?nitials of City Clerk <br />Page 4 of 8 <br />