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Section 4. Form of Security for Unpaid Development Impact Fees. A. As a condition of the deferral, the City shall require the property owner, or lessee if the lessee's interest is of record, to execute prior to and as a condition of issuance of a building permit, a Fee Deferral Agreement which shall provide that the deferred development impact fees shall be paid within the time set forth in section 4.D. of this ordinance, and secured by a obligation that shall inure to the benefit of, and be enforceable by the City, evidenced by either: 1. a senior, unsubordinated recorded lien on the Subject Property which shall be enforceable against successors in interest to the property owner or lessee, releasable when the obligation is paid in full, which shall in the case of a Residential project include requirement for an escrow instruction providing for payment out of escrow from sale proceeds of the deferred fees prior to disbursing proceeds to the seller, or, at the Applicant's option, 2. an irrevocable letter of credit from the Applicant in a form approved by the City Attorney, which shall be releasable when the obligation is paid in full. B. The payment of such development impact fees shall be deemed a debt due and owing to the City at such time as set forth herein, which debt shall only be deemed satisfied and discharged upon payment in full to the City. The City may pursue collection through all available legal and administrative means including, but shall not be limited to, judicial or non-judicial foreclosure of the recorded lien against the Subject Property, a demand upon the irrevocable letter of credit, and/or civil judgment against the Applicant for breach of the Fee Deferral Agreement and/or the security provided hereunder. Section 5. Extension of Inactive Plan Check and Building Permits. A. Notwithstanding Section 3 of Ordinance No. NS-2760, amending Appendix Chapter 1, section 105.3.2 of the California Building Code, 2007 Edition, the building official may grant (i) extensions of applications for a permit for a period of up to one (1) year, and (ii) more than one extension per application, both without resubmission of plans and payment of new plan review fee. B. Notwithstanding Section 3 of Ordinance No. NS-2760, adopting Appendix Chapter 1, section 105.5 of the California Building Code, 2007 Edition, the building official may grant extensions of inactive building permits for a permit for a period of up to one (1) year without resubmission of plans and payment of new fees. Ordinance No. NS-XXX Page 4 of 4 11 B-4