Richmond By-law 8057, s. 5.2.7 — The security deposit delivered pursuant to Section 5.2.6 above will be governed by the following provisions

The security deposit delivered pursuant to Section 5.2.6 above will be governed by the following provisions:

• a) The City may immediately make a claim under any bond held as the security deposit and apply such proceeds, cash any letter of credit held as the security deposit, and, in the Director ’s discretion, apply the proceeds of such letter of credit, or, if the security deposit is held as cash, apply said funds to have replacement trees planted on the subject parcel by City staff, or a contractor engaged by the City, as a cash-in-lieu contribution on behalf of the owner to the City ’s Tree Compensation Fund for off-site planting, or as the Director may otherwise decide, if:
• i) any retained tree is damaged, or dies, other than as a result of natural accidental causes such as lightening strike, or is cut or removed;
• ii) any replacement tree, to be planted by the owner as compensation for

a retained tree that is damaged, dies, or is cut or removed, is:

• (A) not planted within six (6) months of the damage, death, cutting or removal of the retained tree; or
• (B) is planted but is itself damaged, or dies, or is cut or removed; or
• iii) the owner fails to deliver to the Director any post-construction assessment report from the certified tree risk assessor within one (1) year of the substantial completion of the works, or the monitoring report from the certified tree risk assessor within two (2) years of the substantial completion of the works, and thus the owner is deemed not to have complied with their obligations to preserve the retained trees under this bylaw.
• b) Notwithstanding subsection 5.2.7(a), if an owner complies with the provisions of the bylaw, the City will:
• i) return up to 100% of the remaining security deposit, with no interest, to the owner, or upon written request of the owner to the

owner’s agent, within six (6) months after the later of:

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• (A) substantial completion of the works and confirmation that the retained tree(s) have been protected in accordance with the letter of undertaking, as demonstrated by a site inspection and/or by delivery to the Director of a post-construction assessment report from a certified tree risk assessor, to the satisfaction of the Director; and
• (B) completion of the planting of the replacement trees as demonstrated by a site inspection and/or by delivery to the Director of a tree replacement completion report from a certified tree risk assessor, to the satisfaction of the Director; or
• ii) retain up to 100% of the security deposit if the Director is not satisfied with the site inspection, post-construction assessment report or tree replacement completion report, as the case may be, until the owner has completed any and all remedial action recommended by a certified tree risk assessor, to the satisfaction of the Director, at which time the City will return up to 100% of the remaining security deposit, with no interest, to the owner, or upon written request of the owner to the owner’s agent
• c) If the security deposit is not sufficient for the City to rectify any contravention or non-compliance with this bylaw, or any other City bylaw relevant to the matter that is the subject of the applicable permit, including the planting of any replacement tree(s), the owner will pay any deficiency to the City within seven (7) days of receiving a written demand for such amount from the City. Any such deficiency charges that remain unpaid on or before December 31st in the year in which the charges are incurred by the City, form part of the taxes payable on such parcel, as taxes in arrears.
• d) If a security deposit is in the form of a letter of credit and it will expire prior to the owner complying with the provisions of this bylaw, the owner will deliver to the City, at least 30 days prior to its expiry, a replacement letter of credit on the same terms as the original letter of credit provided to the City, unless otherwise approved by the Director. If the owner fails to do so, the City may draw down upon the letter of credit and hold the resulting cash as the security deposit in lieu thereof.
• e) If a security deposit is in the form of an on-demand irrevocable bond, the bond will be without expiry, be issued on the City’s then current form of irrevocable bond by a prequalified institution satisfactory to the Director and acceptance by the City will be subject to an administration fee.
• f) If an owner disposes or otherwise transfers its ownership of a parcel subject to the preservation of one or more retained trees, the transferee will be bound by the requirements, restrictions and regulations of such building permit or conditions for subdivision, the letter of undertaking and this bylaw and the security deposit held by the City will continue to secure 8253581 Bylaw 8057 Page 19 such obligations including the preservation of such retained tree(s) and the

owner will be deemed to have assigned its security deposit to the transferee unless the owner causes the transferee to replace any security deposit held by the City in a form acceptable to the Director upon the disposition or otherwise transfer of ownership.