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9.8 Forfeiture of Letter Of Credit <br />Thirty (30) days following City providing Contractor with written notice of its failure to <br />pay City any amount owing under this Agreement, City may draw upon the LOC for <br />purposes including, but not limited to: <br />a. Payment of sums due under the terms of this Agreement which Contractor has <br />failed to timely pay to City <br />b. Reimbursement of costs borne by City to correct violations of this Agreement not <br />corrected by Contractor, including but not limited to the liquidated damages <br />described in Section 11.4. <br />City may draw upon the entire LOC and convert it to a cash deposit if Contractor fails <br />to cause the LOC to be extended or replaced with another satisfactory letter of credit no <br />later than 60 days prior to its expiration during the term hereof. <br />9.9 Performance Security Beyond Service Term <br />Some Agreement requirements extend beyond the Term of this Agreement and will not <br />be substantiated until after the final service date. Therefore, the Contractor shall not <br />terminate the performance bond or letter of credit, and will renew them to ensure <br />continuous availability to the City, until receiving a written release from the City. City <br />will provide such a release when City, in its reasonable judgment, is fully satisfied that <br />all requirements have been met, but may not withhold such a release later than four (4) <br />years after expiration of the term of this Agreement. However, permission from the City <br />to discontinue holding these performance securities does not relieve Contractor of <br />payments to the City that may be due, or may become due. <br />March 9, 2020 115 City of Santa Ana - DRAFT <br />60A-204 <br />