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. , , � 2. Issuance of Buildin� Permit for Propertv Improvements: The City agrees to issue a building permit for the Property Improvements at this time, subject to conformance with all current City standards and ordinances for all applicable work. 3. Se�tic Svstem Up r� In accordance with the ordinances and requirements of the City, the Property Owner hereby agrees to complete the required replacement of the septic system no later than August 31, 2003 (the "Completion Date"). 4. Septic System Upgrade Installation: The design location, construction, installation and materials tor septic system upgrade shall be in accordance witn the pians and specifications approved by the City. 5. Performance Deposit: For the purposes of assuring to the City that the Septic Improvements will be completed according to the terms of this agreement, the Property Owner has deposited with the City at the time of the execution of this agreement a certified check satisfactory to the City providing that the City is able to cash the check in its sole discretion to complete the Septic Improvements if the Property Owner fails to satisfactarily complete the work prior to the Completion Date. City shall return the check to Property Owner upon final inspection approval of the Septic Improvements. 6. Bindin� Effect: The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding deemed covenants running with the land. References herein to Property Owner, if there be more than one, shall mean each and all of them. This agreement shall be executed by the Property Owner and City and shall be placed of record so as to give notice hereof to subsequent purchasers and encumbrancers of all or any part of the property, and all recording fees, if any, shall be paid by the Property Owner. 7. Notices: Whenever in this agreement, it shall be required or permitted that notice or demand be given or served by either party to this agreement to or on the other party, such notice or demand shall be delivered personally or mailed by United States certified mail (return receipt requested) to the addresses set forth below. Such notice or demand shall be deemed timely given when delivered personally or when deposited in the mail in accordance with the above. Initials of Property Owner Initials of City Clerk Page 2 of 4