Improvement guarantees may be provided by the developer or subdivider
to ensure the proper installation and maintenance of required street,
utility and other public improvements. The nature and duration of
the guarantee shall be structured to achieve this goal without adding
unnecessary costs to the developer. These guarantees are to comply
with Section 509 of the MPC.
In the event that any improvements which may be required have
not been installed as provided in this chapter or in accord with the
approved final plat, the Township may enforce any corporate bond or
other security by appropriate legal and equitable remedies. If proceeds
of such bond or other security are insufficient to pay the cost of
installing or making repairs or corrections to all the improvements
covered by said security, the Township may, at its option, install
part of such improvements in all or part of the subdivision or land
development and may institute appropriate legal or equitable action
to recover the moneys necessary to complete the remainder of the improvements.
All of the proceeds, whether resulting from the security or from any
legal or equitable action brought against the developer, or both,
shall be used solely for the installation of the improvements covered
by such security, and not for any other municipal purpose.
Performance and maintenance guarantees shall be provided in
a number of forms, including but not limited to the following:
A. Security bond, performance bond and labor and materials
bond. The applicant may obtain a bond from a surety bonding company
authorized to do business in the state.
B. Letter of credit. The applicant may provide an irrevocable
letter of credit from a bank or other reputable institution.
C. Escrow account. The applicant shall deposit cash or
other instruments readily convertible into cash at face value either
with the Township or in escrow with a bank.
D. Subdivision improvement guarantee. An applicant may
provide as a guarantee a subdivision improvement agreement between
the applicant, lender, and Girard Township.
E. Cash deposit (CD). The applicant may establish a CD
account opened in the name of Girard Township.