§ 34-203. Irrevocable letter of credit.

(a)

Before issuance of a certificate of completion, the developer shall submit to the county engineer an irrevocable letter of credit which is drawn on a financial institution having an office for letter of credit presentation in either Orange, Seminole or Osceola counties. The financial institution shall be on the State of Florida approved "qualified public depositories" list for local governments, as identified in F.S. ch. 280. Should the financial institution be removed from the approved "qualified public depositories" list during the duration of the letter of credit, then the county comptroller will notify the developer of such removal in writing by certified mail. The developer shall, within ten (10) business days of the mailing date by the county comptroller, replace the letter of credit with another from an approved depository meeting the criteria stated herein. In the event of nonreplacement within the deadline as stated above, the county comptroller will draw immediately upon the letter of credit. The letter of credit shall be payable to the board of county commissioners in the amount of ten (10) percent of the estimated construction cost of all the required public improvements which are to be eventually owned and maintained by the county. The letter of credit shall have an expiration date of one (1) year from the date of issuance of the certificate of completion. The financial institution shall be responsible for notifying the county engineer in writing of the expiration date no less than thirty (30) days before the expiration date. (The letter of credit shall be renewed for an additional ninety (90) days upon the written request of the county engineer.)

(b)

The purpose of the irrevocable letter of credit is to guarantee the materials, workmanship, structural integrity, functioning, and maintenance of the required public improvements during the one-year period following issuance of the certificate of completion.

(c)

If the county engineer determines after issuance of the certificate of completion that the materials, workmanship, structural integrity, functioning, or maintenance of any of the required public improvements is unacceptable, he shall so notify the developer by registered mail of the unacceptable condition, and, subject to subsection (d) below, he shall afford the developer a reasonable period of time in which to correct the unacceptable condition. If the county engineer thereafter determines that the unacceptable condition has not been corrected, the county may present to the local financial institution a sight draft demanding payment on the irrevocable letter of credit.

(d)

The reasonable period of time referenced in subsection (c) above may be shortened or waived at the discretion of the county engineer if the irrevocable letter of credit will expire before the end of a reasonable period of time, unless the letter of credit is renewed for an additional ninety (90) days before the expiration date, or if the unacceptable condition poses a risk or danger to the health, safety, and welfare of the people of the county.

(Ord. No. 94-4, § 1(Exh. A), 2-8-94; Ord. No. 2000-14, § 1, 6-27-00)