The amount of any performance guaranty may be reduced by the
Borough Council by resolution when portions of the improvements have
been certified by the Borough Engineer to have been completed. The
time allowed for installation of the improvements for which the performance
guaranty has been provided may be established by the Borough by resolution.
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 Borough for the reasonable
cost of the improvements not completed or corrected, and the Borough
may, either prior to or after the receipt of the proceeds thereof,
complete such improvements.
When all of the required improvements have been completed, the
obligor shall notify the Borough Council in writing, by certified
mail addressed in care of the Borough Clerk, of the completion of
said improvements and shall send a copy thereof to the Borough Engineer.
Thereupon, the Borough Engineer shall inspect all of the improvements
and shall file a detailed report, in writing, with the Borough Council,
indicating either approval, partial approval or rejection of the improvements,
with a statement of reasons for any rejection. If partial approval
is indicated, the cost of the improvements rejected shall be set forth.
The Borough Council shall either approve, partially approve
or reject the improvements on the basis of the report of the Borough
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 65 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 its performance guaranty except for the improvements
not yet approved. Failure of the Borough Council to send or provide
such notification to the obligor within 65 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.
If any portion of the required improvements is 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 article shall be followed.
The obligor shall reimburse the Borough for all reasonable inspection
fees paid to the Borough Engineer for the foregoing inspection of
improvements.