Before recording final subdivision plats or as a condition of final site plan approval, the Planning/Zoning Board shall require, for the purpose of assuring the installation and maintenance of on-tract public improvements and landscaping within two years of such approval, and shall accept in accordance with the standards adopted herein:
A. 
The furnishing of a performance guaranty in favor of the Township in an amount equal to 120% of the cost of installations for improvements as estimated by the Township Engineer, including streets, grading, pavement, gutters, curbs, sidewalks, streetlighting, shade trees, surveyor's monuments, water mains, culverts, storm sewers, sanitary sewers or other means of sewage disposal, drainage structures, erosion control and sedimentation control devices, public improvements of open space, landscaping and other public on-site improvements. Not less than 10 of the required guarantee shall be in cash.
B. 
The furnishing of a maintenance guaranty to be posted with the governing body for a period not to exceed two years after final acceptance of the improvement, in an amount equal to 15% of the cost of the improvement. In the event that other governmental agencies or public utilities automatically will own the utilities to be installed or the improvements are covered by a performance or maintenance guaranty to another governmental agency, no performance or maintenance guaranty, as the case may be, shall be required by the Township for such utilities or improvements.
C. 
The time allowed for installation of the improvements for which the performance guaranty has been provided may be extended by the governing body by resolution as a condition or as part of any such extension, the amount of any performance guaranty shall be increased or reduced, as the case may be, to an amount not to exceed 120% of the cost of the installation as determined as of the time of the passage of the resolution.
D. 
If the required improvements are not completed or corrected in accordance with the performance guaranty, the obligor and surety, if any, shall be liable thereon to the Township for the reasonable cost of the improvements not completed or corrected, and the Township may either prior to or after the receipt of the proceeds thereof complete such improvements.
E. 
Upon substantial completion of all required appurtenant utility improvements, and the connection of same to the public system, the obligor may notify the governing body in writing, by certified mail addressed in care of the Municipal Clerk of the completion or substantial completion of improvements and shall send a copy thereof to the Township Engineer. Thereupon the Township Engineer shall inspect all improvements of which such notice has been given and shall file a detailed report, in writing, with the governing body, indicating either approval, partial approval or rejection of such improvements with a statement of reasons for any rejection. The cost of the improvements as approved or rejected shall be set forth.
F. 
The governing body shall either approve, partially approve or reject the improvements on the basis of the report of the Township Engineer and shall notify the obligor in writing, by certified mail, of the contents of said report and the action of said approving authority with relation thereto, not later than 45 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to the performance guaranty, except for that portion adequately sufficient to secure provision of the improvements not yet approved; provided that 30% of the amount of the performance guaranty posted may be retained to ensure completion of all improvements. Failure of the governing body to send or provide such notification to the obligor within 45 days shall be deemed to constitute approval of the improvements and the obligor and surety, if any, shall be released from all liability pursuant to such performance guaranty for such improvements.
G. 
The performance guaranty may be released when:
(1) 
The Township Committee has authorized acceptance of improvements and in pursuant to N.J.S.A. 40:55D-53e. Bonds, if any, shall be released first; cash shall be released last.
(2) 
The Township Engineer has issued a certification in the following form:
"I hereby certify that all of the improvements required to be installed by ______________________ in subdivision (site plan) known as ___________________________ which are covered by a performance bond issued by _______________________ Bond No. ______________ and/or by cash escrow in the amount of $ ______________ have been installed in accordance with specifications of the Township of South Harrison and to my satisfaction."
H. 
If any portion of the required improvements are rejected, the approving authority may require the obligor to complete such improvements and, upon completion, the same procedure of notification, as set forth in this section shall be followed.
I. 
Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the governing body or the Township Engineer.
J. 
The obligor shall reimburse the municipality for all reasonable inspection fees paid to the Township Engineer for the foregoing inspection of improvements, as provided in § 90-4.37, provided that the municipality may require of the developer a deposit for all or a portion of the reasonably anticipated fees to be paid to the Township Engineer for such inspection.
K. 
In the event that final approval is by stages or sections of development, the provisions of this section shall be applied by stage or section. Similarly, if a developer should opt to delay acceptance of private road improvements by either a homeowners' association or the governing body, then the release of any performance guaranties shall be as provided for in this section. Maintenance responsibility shall remain with the developer, to be governed by any conditions of final approval of a development application. Upon acceptance of the improvements by a homeowners' association or the governing body, a maintenance guaranty as outlined herein shall be required.
L. 
Performance guaranties shall be approved by the Township Attorney as to form, sufficiency and execution. A letter of credit shall be an acceptable form of performance guaranty if it is in accord with N.J.S.A. 40:55D-53.5, approved by the Township Committee and satisfies the following conditions:
(1) 
It is irrevocable for an initial period of at least one year with automatic one year renewals unless the bank notifies the Township in writing at least 90 days before the initial date of expiration or each anniversary of such date that it will not be renewed;
(2) 
If the letter of credit is not renewed:
(a) 
The Township shall have the right to immediately draw a draft on sight if the developer's performance is not satisfactory as of that date, or to draw a draft 30 days after receipt of said notice if, after notification by the municipality that the letter of credit will not be renewed, the developer fails to submit a satisfactory replacement performance guaranty; and
(b) 
The developer agrees to cease and desist all such work upon receipt of notification from the municipality that the letter of credit will not be renewed until such time as a satisfactory replacement performance guaranty is submitted; and
(3) 
The developer shall execute any agreements required by the Township Attorney confirming the conditions set forth herein prior to the Township's acceptance of said letter of credit.