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<br />The notice and right to cure provisions shall be void if the Security will expire in less than thirty <br />(30) days, and in such case the City shall be allowed to proceed under the ''Emergency'' provisions <br />set forth in Section 23. If the Security is drawn down, the proceeds shall be used to cure the default <br />or held ~til the Developer has provided alternative security satisfactory to the City. Upon receipt <br />of proof to the City that work has been satisfactorily completed and financial obligations to the City <br />and Developer's contractors have been satisfied, with City approval the Security may be reduced <br />from time to time by ninety' percent (900.10) of the financial obligations that have been satisfied, <br />except in no event shall the security be reduced to an amount lower than the outstanding special <br />assessments on the property in the development. ~en percent (10%) of the Security. shall be <br />retained until all Public Improvements have been completed, all obligations to the City satisfied, and <br />the required "as constructed" plans have been reeeivedaccepted by the City. The City must approve <br />or deny a request for reduction in the Security within twenty-one (21) days after receipt of proof <br />satisfactory to the City as provided above. <br />20. CLAIMS. In the event that the City receives claims from laborers, materialmen, <br />or others that work or materials have been provided subject to this Agreement for Developer <br />whereby sums due them have not been paid, and the laborers, materialmen, or others are seeking <br />payment from the. City, the Developer hereby authorizes the City to commence an Interpleader <br />action pursuant to Rule 22, Minnesota Rules of Civil Procedure. The Developer authorizes the <br />City to draw upon the Security and Additional Security in an amount up to 125% of the claim(s) <br />and deposit the funds in compliance with the Rule. Upon such deposit, the Developer shall <br />assume responsibility for the claims, release the City from liability for the claims and authorize <br />the Court to dismiss with prejudice the City from any further proceedings as it pertains to the <br />claims, or the Security or Additional Security deposited with the District Court, except that the <br />Court shall retain jurisdiction to determine the City's attorneys' fees pursuant to this Agreement. <br /> <br />Hanzal Development Agreement v91.docHanool DeveleJ3meBt t\gFeemeat "/98 <br /> <br />11 <br />