If any Town officer, board, committee or commission which has
received surety for work or for the performance of any obligation
hereunder determines at any time that the applicant who posted such
security is in default of his, her or its obligations (whether because
of a failure to complete such work or performance by a designated
deadline, or the unsatisfactory quality of such applicant's work
or performance, or otherwise), such officer, board, committee or commission
may declare such applicant in default.
Upon a declaration of default, such officer, board, committee or commission shall be entitled to apply any and all surety posted by such applicant (including any interest received thereon) to the completion of the work or the performance of the obligations for which such surety was posted. Without limiting the generality of the foregoing, such officer, board, committee or commission may take any and all actions necessary or appropriate to enforce any bond, make demand on any issuer of a letter of credit, and demand payment under any so-called 'tripartite' agreement, and any money received as a result thereof shall be deposited in an account held by the Treasurer under § 197-4, above. Monies in such special account may be expended by such officer, board, committee or commission, without further appropriation, to complete the work or perform the obligations which such applicant was obliged to do or perform. Any monies remaining in such account after all work has been done and all obligations performed to the full satisfaction of such officer, board, committee or commission shall be returned to the applicant, including any accrued interest.
