A. The subdivider may offer as a guarantee, land or other property, including corporate stocks or bonds. The value of any real property to be used, accounting for the possibility of a decline in its value during the guarantee period, shall be established by a licensed real estate appraiser at the subdivider’s expense. The city council may reject the use of property as a collateral when the property value is unstable, when the property may be difficult to sell, or when other factors exist which will inhibit the exchange of the property for an amount of money sufficient to complete required improvements.

B. When the property is offered as an improvement guarantee, the subdivider shall:

1. Make an agreement with the escrow agent instructing the agent to release the property to the city council in case of default. The agreement shall be placed on file with the county clerk and recorder.

2. Provide the city council with a title policy affirming that the property to be used as a guarantee is free and clear of any encumbrances or liens at the time it is to be put in escrow;

3. Execute and file with the city council an agreement stating that the property to be placed in escrow is an improvement guarantee and that it will not be used for any other purpose, or pledged as security for any other matter until it is released by the city council. (Ord. 588 § 1(part), 1996)