§ 94-4.408. Payment security.

Security in the form of cash deposit, acceptable surety bond, or acceptable instrument of credit equivalent to fifty percent of the estimated cost of the improvement or the performance of the required act, shall be required to secure payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment to them for the improvement or the performance of the required act. Six months after the acceptance of the work as complete, said payment security may be reduced to an amount not less than the total of all claims on which an action has been filed and notice thereof given in writing to the legislative body; and if no such actions have been filed, the security may be released in full.

(Ord. 78-5).