Security Requirements.
Tupelo Development Code § 12.10.24
in effect12.10.24. - Security Requirements.
(1) General: In order to ensure that the work will be completed in accordance with approved construction drawings and applicable specifications, all public and private improvements proposed in conjunction with any subdivision must be covered by adequate security. The applicant shall post approved security with the City of Tupelo. The approved security shall be one or more of the types of security specified herein. Approved security shall be accompanied by a development agreement whereby the applicant agrees to make and install the improvements in accordance with the approved construction drawings and applicable specifications to ensure completion of the work.
(2) Types of Security: Subject to the standards and requirements of this Article and of guaranteeing completion of improvements required by these regulations:
(a) Cash that will be deposited in a liability account;
(b) Assignment of Certificate of Deposit that is to be held by the City as collateral to assure completion of project; or
(c) Irrevocable Standby Letter of Credit: The letter of credit shall be obtained at a financial institution acceptable to the City Attorney and show the City of Tupelo as beneficiary. The letter of credit shall be effective for one year and automatically renewable for one-year periods with no effort on the part of the City. Should the financial institution decide not to renew the letter of credit, the institution shall notify the City in writing 90 days prior to its expiration date by certified mail return receipt requested at which time the City can draw up to the full face value of the letter of credit. Any litigation concerning this letter of credit shall be held before a court of appropriate jurisdiction in Lee County, Mississippi.
(3) Amount of Security: If the construction cost for internal improvements (within the property boundary) is estimated to be greater than $100,000.00, the Developer shall provide a financial security instrument for $100,000.00. If the construction cost for internal improvements (within the property boundary) is estimated to be less than $100,000.00, the Developer shall be required to provide a financial security instrument for the estimated cost of the public and private improvements. A financial security instrument shall be provided for the full amount of the estimated cost of the external public improvements (outside the property boundary). A financial security instrument may be revised during the contract period if approved by the Mayor and City Council.
Source: City of Tupelo, Mississippi, Code of Ordinances and Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/ms/tupelo/codes/development_code?nodeId=CH12APPE_12.10SU_12.10.24SEREFetched: 11/1/2026