Subject to the city council’s approval, the subdivider shall provide the city council with a letter of credit from a bank or other reputable institution or individual certifying the following:

A. That the creditor guarantees funds in an amount, as approved by the city council, equal to the cost of completing all required improvements;

B. That if the subdivider fails to complete the specified improvements within the required period, the creditor will immediately pay to the city council upon presentation of a sight draft without further action, an amount of cash necessary to finance the completion of those improvements, up to the limit of credit stated in the letter;

C. That this letter of credit may not be withdrawn or reduced in amount, until released by the city council. (Ord. 588 § 1(part), 1996)