Loading...
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)