16-0622_LAMMING, SCOTT_Certificate of DepositCITY OF SAN JUAN CAPISTRANO
IRREVOCABLE ASSIGNMENT OF POWER TO
WITHDRAW TIME CERTIFICATE OF DEPOSIT
GRADING SURETY AGREEMENT SECURITY DEPOSIT
WHEREAS, SCOTT LAMMING, hereinafter referred to as the "Developer," has entered
into that certain "GRADING SURETY AGREEMENT" dated �3on c Z9 , 2016, and
identified as project 3 Strawberry Lane (City Job No:1315-1473), located at 3 Strawberry Lane
("Agreement") with the City of San Juan Capistrano, hereinafter referred to as the "City"; and
WHEREAS, the Developer is required by the Agreement to provide the City with a
security deposit to guarantee (1) the Developer's full and faithful performance of all terms,
conditions and covenants of the Agreement; (2) the payment of all contractors, subcontractors,
laborers and materialmen who have furnished labor or materials to Developer for those
improvements that are the subject of the Agreement; and (3) the performance of all warranty and
guarantee obligations under the Agreement, collectively referred to as the "Obligations"; and
WHEREAS, to provide for performance of the Agreement and the Obligations further
described therein, the Developer has deposited a "Time Certificate of Deposit" numbered -
_ U SQ 2`7C I drawn by
his ttzr'r�F 1-s C3 x�fi�i�, (BANK/FINANCIAL INSTITUTION),
a financial institution subject to regulation by the State of California and/or the Federal
Government of the United States of America ("Bank"), in the amount of Twenty Five
Thousand eight Hundred Fifty Eight Dollars ($25,858) with the City to be used by the City
Engineer or his or her designee, to perform the Obligations under the Agreement which, in the
opinion of the City Engineer or his or her designee, the Developer fails to adequately perform.
NOW THEREFORE, the Developer hereby irrevocably assigns to the City Engineer or
his or her designee and without any additional authority from the Developer, the sole power to
withdraw any or all of the said funds which are needed to perform any of the Obligations
contemplated by the Agreement, which have not been performed to the satisfaction of the City
Engineer or his or her designee, or within the time specified in said Agreement, if any. The
Developer irrevocably relinquishes any and all power to withdraw from the "Time Certificate of
Deposit." This authorization and said "Time Certificate of Deposit" shall in no event be
construed as a limitation upon the liability of the Developer in securing performance of the
Agreement and the Obligations thereunder. Bank agrees that the Bank will transfer funds from
the "Time Certificate of Deposit" to the City in accordance with instructions provided to the
Bank by the City at the time of the draw upon receipt of one or more notices signed by the City
Engineer or his or her designee that funds are required to satisfy the Obligations. The "Time
Certificate of Deposit" shall be held by Bank until the City releases the "Time Certificate of
Deposit" by letter to the Developer and Bank upon determination by the City Engineer or his or
her designee that the Developer has fully and satisfactorily completed the Agreement and
Obligations thereunder. Developer and Bank agree that: (1) until such time as the Obligations
are fully performed, the "Time Certificate of Deposit" shall be the property of and shall be held
in trust by Bank for the benefit of City and any statements issued by Bank for the same shall be
61147.02100\24821706.1 B15-1473
CITY OF SAN JUAN CAPISTRANO
delivered to City; (2) Developer shall not encumber or pledge the funds held in the "Time
Certificate of Deposit" for any purpose; (3) Bank will not permit Developer or any other person
or entity to withdraw funds from the "Time Certificate of Deposit," unless and until the Bank
receives the signed original of the letter to Developer from the City Engineer or his or designee
certifying that the Developer has fully and satisfactorily completed the Agreement and
Obligations thereunder.
IT IS FURTHER AGREED, in the event that the funds in the "Time Certificate of
Deposit" should for any reason become unavailable for distribution to City prior to the
completion of the Obligations, then within five (5) business days' notice from City, Developer
shall provide a substitute security in a form and amount that is reasonably acceptable to City.
IT IS FURTHER AGREED, Bank shall subordinate any present or future security
interest it may have in the "Time Certificate of Deposit" to the security interest of City therein
and shall not exercise any right of set-off, recoupment, counterclaim or any similar right in
connection with any funds in the "Time Certificate of Deposit" until such time as the "Time
Certificate of Deposit" has been released by City. As of the date hereof, Developer and Bank
represent that there are no control agreements outstanding in respect of the "Time Certificate of
Deposit" and neither is aware of any lien or encumbrance that may or will affect the "Time
Certificate of Deposit."
Date: FARMERS t MS(ZOrooli tj1AK
NANW / FINANCIAL INSTITU ION
By: /De l
Its:
Mailing Address:
�;Atj aL)0#3 C.&,PoTmum j (A 1.12,&-13
Date: 24 , L .swIT' uhCom\ M�N q
NAME OF DEVEL PER
By:
Its:
Mailing Address:
Signatures of those signing for the Developer and Financial Institution must be notarized and
evidence of corporate authority attached. A copy of the Power -of -Attorney to local
representatives of the Financial Institution must be attached hereto,
61147.02100\24821706.1 B15-1473
CITY OF SAN JUAN CAPISTRANO
(signatures continued on next page)
61147.02100\24821706.1 B15-1473
CITY OF SAN JUAN CAPISTRANO
ACCEPTED:
CITY OF SAN JUAN CAPISTRANO
By:
Its: City Engineer
Mailing Address:
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
61147.02100\24821706.1 B15-1473
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ORANGE
On 'Ao o1`' 29, 201(P before me, j E . K(
Notary Public, personally appeared TI i ,who
proved to me on the basis of satisfactory evidence to be the person( whose name'
isle subscribed to the within instrument and acknowledged to me that 0/she/t,Vey
executed the same in [/slherltVeir authorized capacity(i)Ks), and that by l slherltl/ir
signature(,) on the instrument the personw, or the entity upon behalf of which the
person) acted, executed the instrument. I certify under PENALTY OF PERJURY
under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
-I&J7,
BLANCA E. RODRIGUE2
Commission # 2061935
c ' Notary Public - California i
x Orange County
Comm. Expires A r 18, 2018
(seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validitv of that document.
State of California
County of Q re ncg l
On (0 before me, L, 1 Z � t f
(insert name and tijde of t e officer)
personally appeared �-XO- 1
who proved to me on the basis of satisfactory evidence be the person whose name( islap6
subscribed to the within instrument and acknowledged to me that hefspMt 6y executed the same in
his/hXrftq,6ir authorized capacity(igs), and that by his/herlth6ir signature) on the instrument the
person, or the entity upon behalf of which the personM acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
BLANCA E. RODRIGUEZ
WITNESS my hand and official seal. Commission #t 2081935 z
-ri Notary Public - California x
Z Orange County
s�Comm. Ex Tres A r 18, 2018
Signature
(Seal)