A. The subdivider shall deposit cash, or collateral readily convertible to cash at face value, either with the city council or in escrow with a bank. The use of collateral other than cash, and the selection of the bank where the funds are to be deposited must be approved by the city council.

B. Where an escrow account is to be used, the subdivider shall give the city council an agreement with the bank guaranteeing the following:

1. That the funds in the escrow account are to be held in trust until released by the city council and may not be used or pledged by the subdivider as security for any other obligation during that period;

2. That should the subdivider fail to complete the required improvements, the bank shall immediately make the funds in escrow available to the city council for completing these improvements. (Ord. 588 § 1(part), 1996)