Duluth UDC § 1129.04

339 | P a g e Article Eleven. Procedures and Permits The letter of credit shall be in a form acceptable to the City (see Section 1131 for an example). The executed letter of credit shall be submitted with the final Development Performance and Maintenance Agreement and shall certify the following: 1. That the issuer guarantees funds as an assignment in an amount no less than the total amount determined in accordance with Section 1129.03. 2. That the issuer guarantees that any liens or encumbrances that exist or may be placed on the improvements will not become the responsibility of the City under any circumstances. 3. That if the owner fails to maintain, repair, replace or restore each of the specified improvements within the maintenance period, upon written demand of the Planning Director the issuer will pay to the City immediately, and without further action, the full amount of the total assignment stated in the letter of credit (less the actual cost of covered improvements expended as of the date of demand and accepted by the City as to reasonableness). 4. That the letter of credit shall not be terminated less than 60 calendar days after the date of the end of the maintenance period as contained in the pertinent Development Performance and Maintenance Agreement, may not be withdrawn or reduced in amount, and will be automatically renewed on a month- to-month basis until released in writing by the Planning and Development Director.