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15.1 SECURITY REQUIREMENT. Prior to release. of the CUP for recording, the DEVELOPER shall deposit with the CITY an irrevocable letter of credit, cash deposit, or other security acceptable: to the CITY for the amount stated in Exhibit D5. All cost estimates shall be acceptable to the DIRECTOR OF CITY ENGINEER, The total security amount was calculated as shown on the attached Exhibit D5. The bank and form of the irrevocable letter of credit, or cash deposit. shall be subject to approval by the City Finance Director and City Attomey and shall continue to Nip full force and effect until released by the CITY. The irrevocable letter of credit shall be for a term ending unless: earlier canceled by agreement of the parties. hi the alternative, the letter of credit may be for a one year term. provided it: is automatically renewable for successive one year periods frorn the present or any future expiration dates•with a final expiration date of , and further provided that the irrevocable letter of .credit states: That at. least sixty. (6.0) days prior to the. expiration date the bank will notify the CITY that if the bank elects not to renew .foran. additional period. The. irrevocable letter of .credit shall secure compliance by the DEVELOPER with the terms of this DEVELOPMENT CONTRACT. The CITY may draw down. on the irrevocable letter of credit or cash deposit, without any further notice than that. provided in Section 14.1 relating to a DEVELOPER DEFAULT, for any of the following reasons: a.) a DEVELOPER DEFAULT; or. b) upon the CITY receiving notice that the irrevocable letter of credit will be. allowed to lapse before The CITY shall use the letter of credit proceeds or cash deposit proceeds to reimburse the CITY for its costs and to cause the DEVELOPER. IMPROVEMENTS listed on Exhibit D5 to be constructed to the extent practicable; if the DIRECTOR OF CITY ENGINEER determines that such DEVELOPER IMPROVEMENTS listed on Exhibit D5 have: been constructed and after retaining. ten percent (10%) of the proceeds far later distribution pursuant to Section 15.2, the remaining.proceeds shall be distributed to the DEVELOPER. With CITY approval, the irrevocable. letter of credit or cash deposit may be reduced pursuant to. Section 15.2 from time to time as financial obligations are paid. 15.2. SECURITY RELEASE AND SECURITY INCREASE, DEVELOPER IMPROVEMENTS. Periodically, upon the DEVELOPER's written request and upon completion by the. DEVELOPER and acceptance by the CITY of any specific DEVELOPER IMPROVEMENTS, ninety percent (901/6) of that portion of the irrevocable letter of credit or a cash deposit covering those specific completed. improvements only shall be released. The final ten percent (10%) of that portion ofthe irrevocable letter of credit, or cash. deposit, for those specif c completed improvements shall.be held until acceptance by the CITY and expiration ofthe warranty period under Section 1.19 hereof; in the alternative, the `DEVELOPER may post a bond satisfactory.to the CITY with respect to the final ten percent (I0°/o). If it is determined by the CITY that the. DEVELOPMENT PLANS were not strict[y adhered..to, or that work was done without CITY inspection, the CITY may require., as a conditio..n