Security form.

San José Municipal Code § 27.38.090

in effect

27.38.090 - Security form. A. For a City-Developer Contract in which the estimated cost of the required Public Works Project exceeds $250,000, the payment security and performance security must be in the form of bonds meeting the requirements of Part 1 of Chapter 27.24 of this Title 27. B. For a City-Developer Contract in which the estimated cost of the required Public Works Project is $250,000 or less, and for the warranty and monument securities required by a City-Developer Contract of any amount, security may be in any of the following forms. 1. Bonds meeting the requirements of Part 1 of Chapter 27.24 of this Title 27. 2. An irrevocable standby letter of credit from a financial institution and in a form acceptable to the Director and the City Attorney. The City must have the ability to withdraw funds if the developer or property owner fails to fulfill any of the obligations for which the security is given. 3. A certificate of deposit from a financial institution and in a form acceptable to the Director and the City Attorney. The City must have the ability to withdraw funds if the developer or property owner fails to fulfill any of the obligations for which the security is given. 4. A cash deposit with the City under terms and conditions that allow the City to use the funds if the developer or property owner fails to fulfill any of the obligations for which the security is given. (Ord. 30308.)

Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT27PRPUWO_CH27.38CIVECO_27.38.090SEFOFetched: 11/1/2026