ESCROW HOLD þeE RNAME OF þEE SCROW-HOLDER þ þAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODE þEE SCROW þAA CCOU þnN T NUMBER þSS UBDIVISIONNAME OF þSS UBDIVISIO þnNþCC OU þnN TY þT T YPE OF þSS UBDIVISIO þnDN DþRERE þFF ILE NUMBER þSS UBDIVID þeE R/ þDeDE V þeE LOP þeE RNAME OF þSS UBDIVIDER/ þDD EVELOPER þAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODEASSOCI þaA TIONNAME OF þOO W þnN ERS þAA SSOCIATIO þnNþAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODE SUBDIVIþsSIONþsS þPaPA RT þOO N þeE 227 þCC OMMON AR þeaEA þCC OMPL þeE TION þSeSE CURITY AGR þeeEE M þeE NT1. þ This Common Area Completion Security Agreement (223Agreement224) is made this day of 2. þ Recitals.A. þ Property to Which Agreement Applies. Subdivider/Developer is the owner of certain real property described as: , Records of County, California (herein 223the Subdivision224).B. þ Public Report. Subdivider/Developer has applied for a California Department of Real Estate Public Report (223Public Report224) covering the Subdivision. Prior to obtaining the Public Report, the Subdivider/Developer is required pursuant to the provisions of Business and Professions Code 24711018.5(a)(2) or 11230 to make and retain in full force and effect arrangements assuring completion, free of all liens and claims, of certain common area improvements listed on the Planned Construction Statement attached to this Agreement as Exhibit 223A224 (223Improvements224).3. þ Secured Obligation. Subdivider/Developer shall complete or cause to be completed, at Subdivider222s/Developer222s sole 223A224, or an extension thereof given in writing by the Association to the Subdivider/Developer. The Improvements shall to time pursuant to Part One, Paragraph 7, below. 4. þ Security. To secure the timely completion of the Improvements free of all liens and claims, the Subdivider/Developer has procured the issuance of the: þ Surety bond in the sum of Dollars ($), to the Association, as obligee, STATE OF CALIFORNIAþDDEPARTMENT OF þRREAL þEEþsSTATECOMMON AREþaA COMPLETION SEþcCURITY AGREEMENT [24711018.5(a)(2) or 11230]RE 613 (Rev. 7/15) American LegalNet, Inc. www.FormsWorkFlow.com RE 613 þ Page 2 of 6 þ Letter of credit in the sum of Dollars ($), to the Escrow Holder þ Set-aside letter in the sum of Dollars ($) (223Funds224) to the Escrow þ A copy of which is attached to this Agreement as Exhibit 223B224, or þ Cash deposit in the sum of Dollars ($) has been deposited with the þ The term 223Security224 as used in this Agreement refers to the cash deposit, surety bond, letter of credit, or set-aside letter Improvement free of all liens and claims.5. þ Improvements Account. If the Security is a set-aside letter, the funds set aside by the Issuer thereof (223Funds224) will be retained in an account controlled and administered by the Issuer. The Subdivider/Developer hereby grants the Association a security interest in the Funds to secure the Subdivider222s/Developer222s performance of its obligations to the Association under this Agreement. Without the express written consent of the Association, the Subdivider/Developer shall not request or receive disbursement of any installment from the Improvements Account except for labor and materials actually performed or used in the construction of the Improvements for which the installment is requested. Ten percent (10%) or more of each installment or ten percent (10%) or more of the funds set-aside (223retention224) shall be retained in the Improvements Account. Without the express written consent of the Association, the Subdivider/Developer shall not request or receive the disbursement of any portion of the retention until all of the Improvements have been completed, free of all liens and claims and (i) the statutory period for recording mechanics lien claims for the Improvements has expired, or (ii) the Association has been provided with a policy of title insurance, in an amount not less than the cost of the completed Improvements, insuring that the Improvements as completed are free of liens and claims. þ If at any time Subdivider/Developer into the Improvements Account.6. þ Delay in Completion. The Subdivider/Developer may extend for up to six months the time to complete the improvements as a result of delays caused by acts of God, of Independent contractors, inclement weather, labor trouble, acts of public utilities, public bodies, or inspectors (but not related to possible defects in contractor222s performance), or other contingencies unforeseen by Subdivider/Developer and beyond Subdivider222s/Developer222s reasonable control. The Subdivider/Developer shall notify in writing the Commissioner, the Association and any escrow holder of such extension. The Subdivider/Developer may extend completion for longer periods of time upon approval of the Association. No extension under this section shall be effective unless the Subdivider/Developer assures that a security arrangement exists to cover such extension.7. þ Subdivider/Developer shall have the right without the consent of the Association to make alteration government regulation of construction; (ii) to meet the requirements of the government agencies having jurisdiction over Developer has obtained the written consent of the Association to make such alterations, which consent shall not be unreasonably withheld by the Association. 8. þ Insurance. Subdivider/Developer bears the risk of loss for each Improvement until lien-free completion of that Improvement. Subdivider/Developer shall, at all times until completion of the Improvements, maintain in full force and effect a policy or policies of property insurance containing the usual terms and restrictions on coverage which protects the Subdivider/Developer against loss or damage to the Improvements from loss or other casualty covered under course of construction insurance. Subdivider/Developer shall, at all times until completion of the Improvements, maintain in full force and effect a policy or policies of Worker222s Compensation insurance to protect the Subdivider/Developer from claims and damages from Worker222s Compensation claims arising from the completion of the Improvements. American LegalNet, Inc. www.FormsWorkFlow.com RE 613 þ Page 3 of 69. þ Performance of Obligations. If the Subdivider/Developer fails to perform the Subdivider222s/Developer222s obligation under Part One, Paragraph 3 of this Agreement, the Association shall have the right, whether through enforcement of the Security, demand upon funds drawn thereunder held by the Escrow Holder, or otherwise, to receive such sums as may be required to satisfy the obligation of the Subdivider/Developer under Part One, Paragraph 3 of this Agreement, and the Subdivider/Developer shall, without regard to any other disputes or negotiations then existing, immediately take any and all actions and execute any and all documents as may be required to cause such sums to be paid to the Association. Any amount received by the Association directly from the Subdivider/Developer or from proceeds of the Security shall be credited against any claim by the Association arising out of the Subdivider222s/Developer222s failure to Developer of Subdivider222s/Developer222s obligations under this Agreement, the Association shall, without regard to any other disputes or negotiations then existing, immediately take any and all actions and execute any and all documents reasonably necessary to cause the Security to be released and exonerated.10. þ In the event there is a dispute between the Subdivider/Developer and the Association with respect to this Agreement, of the enforcement, exoneration, or release of the security, the issue or issues shall, at the request of either Subdivider/Developer or Association, be submitted to arbitration, in accordance with the Commercial Arbitration Rules of the American Arbitration Association (223AAA224) before an arbitrator selected from the panels of the arbitrators of said AAA. In the event of referral to arbitration, Subdivider/Developer will remit the fee to initiate the arbitration. The parties agree, however, that the costs of arbitration shall ultimately be borne as determined by the arbitrator. The parties further agree to