All financial security required by this Code, including but not limited
to surety bonds, corporate bonds and letters of credit, shall comply with
the regulations of this chapter.
The following requirements shall apply to any surety bond required by
this Code:
A. The bond shall be obtained from a surety incorporated
in the United States and authorized to do business in the Commonwealth of
Pennsylvania.
B. The surety shall have a current A.M. Best’s rating
of no less than “A” and an underwriting capacity as stated in
Best’s equal to or greater than the amount of the bond written by that
surety, or in the alternative be listed on the current United States Department
of the Treasury’s Annual List of “Companies Holding Certificates
of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring
Companies” as published in the Federal Register and have an underwriting
capacity in said list equal to or greater than the amount of the bond written
by that surety.
The following requirements shall apply to any letter of credit required
by this Code:
A. The letter of credit shall be issued by a federal or
commonwealth chartered lending institution having an office located within
30 miles of the boundaries of Crafton Borough at which a draft on site can
be presented during regular business hours.
B. The letter of credit shall have an expiration date of
no earlier than 90 days after the required completion date of any improvements
or other secured work, permit, function or matter. The Borough, at its discretion,
may accept a letter of credit having an earlier expiration date, provided
the letter of credit states that it will automatically be renewed for a period
of at least one year from any present or future expiration date unless the
Borough receives notice in writing from the issuer at least 60 days prior
to the expiration date that the issuer elects to not further extend the letter
of credit, and that if such notices are given the Borough may draw on the
letter of credit up to the amount of its unused balance on or before the relevant
expiration date.
C. Multiple draws on the letter of credit shall be permitted.
D. Draws shall be permitted at sight at the issuer’s office in a location as set forth in Subsection
A, or by overnight mail.
All financial security tendered by an applicant pursuant to this Code
shall be subject to review and approval by the Borough Solicitor with respect
to the form, source and sufficiency of the same.