HomeMy WebLinkAbout20250736.tiffSec. 8-2-40. Acceptable types of collateral.
A. The three (3) types of collateral listed below are acceptable to the County:
A1. An irrevocable letter of credit from a federal- or state -licensed financial institution that has at least a
three -star rating given by Bauer Financial consistent with a sample form supplied by the County. The
Board may require the applicant to obtain replacement collateral if the rating of the financial
institution providing the collateral drops below this level, which shall be submitted within sixty (60)
days of the Board's notice to the applicant that the rating has fallen and that the collateral must be
replaced. The applicant may not terminate existing collateral until replacement collateral has been
secured.
Ta. The letter of credit shall provide for payment upon demand to the County if the applicant has
not performed the obligations specified in the Improvements Agreement and the issuer has
been notified of such default or if, after the County has received notice that the letter will not
be renewed as set forth below, the County notifies the issuer that the applicant has not
provided adequate replacement collateral and the County intends to demand payment,
regardless of whether applicant is then in default.
2b. The issuer of the letter of credit shall guarantee that, at all times, the unreleased portion of
the letter of credit shall be available to the County for the purpose of completing the
uncompleted improvements enumerated in the Improvements Agreement.
3c. The letter of credit must stipulate that it will automatically renew and shall remain in full force
and effect until released by action of the Board, or until after the Board has received a
minimum of sixty (60) days' written notice from the issuer of the letter of credit of the
pending expiration. The notice shall be sent by certified mail to the Clerk to the Board.
82. A surety bond given by a corporate surety authorized to do business in the State and having at least
a B+ rating given by A.M. Best. The Board may require the applicant to obtain replacement collateral
if the rating of the financial institution providing the collateral drops below this level, which shall be
submitted within sixty (60) days of the Board's notice to the applicant that the rating has fallen and
that the collateral must be replaced. The applicant may not terminate existing collateral until
replacement collateral has been secured.
3C. A cash deposit made with the Board.
B. Upon acceptance by the Board, all forms of collateral shall be deposited into the Trust Fund or
physically retained by authorized personnel in the Clerk to the Board's Office.
(Weld County Code Ordinance 2023-16)
Created: 2024-10-14 16:00:48 [EST]
(Supp. No. 89)
Page 1 of 1
Hello