[HISTORY: Adopted by the Town Board of the Town of Cortlandt 6-5-1990 as L.L. No. 7-1990. Amendments noted where applicable.]
The Town of Cortlandt, over the past years, has experienced some difficulty in collecting on performance bonds posted to insure the completion of improvements or other performance on the part of property owners and developers. It is because of this that the Town Board is desirous of exercising the power granted to it pursuant to the Municipal Home Rule Law of the State of New York to adopt a local law which would supersede the provisions of §§ 277 and 280-a, etc., of the Town Law, and all other local laws and ordinances with respect to the type of performance security which would be acceptable to the town, as well as to provide for the posting of letters of credit, assignment of bank accounts and negotiable instruments and cash as collateral security on any person's part with respect to any application or permit application by any board or department of the town, except as hereinbefore provided, for which performance bonds or other forms of security are now required or provided.
Following the effective date of this chapter, the Town of Cortlandt Town Board and all boards, agencies and departments of the town will only accept as performance security a letter of credit or an assignment of a certificate of deposit or savings account or cash as performance security. Said letter of credit or certificate of deposit or savings account shall be drawn on or deposited in a bank insured by the Federal Deposit Insurance Corporation or some other such federal agency.
The Town Board of the Town of Cortlandt, following the adoption of this chapter and from time to time thereafter, shall by resolution approve of a standard letter of credit and assignment of deposit or passbook form that is acceptable to the Town Board, and said letter of credit and assignment of deposit form shall be the type used by all parties posting performance collateral in favor of the Town of Cortlandt.
This chapter shall supersede §§ 277 and 280-a of the Town Law, and all other local laws and ordinances providing for the posting of performance security, only in respect as to the form of that security and shall not vary or supersede any of the requirements with respect to determining the amount of such performance security or the manner in which approvals are granted or permits issued.
Upon a showing of hardship by any applicant, the Town Board may, after due deliberation and consideration, accept alternate forms of performance security, provided that such alternate forms of performance security are no less protective of the interests of the town than would be the security otherwise required by this chapter.
Any person posting a performance security in compliance with this chapter shall not need to have any further approval of the Town Board, and, upon the certification of the Town Attorney that said letter of credit or assignment of certificate of deposit or cash deposit bank account is acceptable and in compliance with this chapter, said performance security shall be deemed to be acceptable to the Town Board and approved thereby.