The Town, acting through any officer or board authorized by
law, may provide by rule, regulation or contract for the deposit of
cash, bonds, negotiable securities, sureties or other financial guarantees
to secure the performance of any obligation by an applicant as a condition
of a license, permit or other approval or authorization, and the monies
or other security received may be deposited in a special account.
Such rule, regulation or contract shall specify: 1) the type of financial
guarantees required; 2) the treatment of investment earnings, if any;
3) the performance required and standards for determining satisfactory
completion or default; 4) the procedures the applicant must follow
to obtain a return of the monies or other security; 5) the use of
monies in the account upon default; and 6) any other conditions or
rules as the Town determines are reasonable to ensure compliance with
the obligations. Any such account shall be established by the Town
Treasurer in the Town treasury and shall be kept separate and apart
from other monies. Monies in the special account may be expended by
the authorized board, commission, department or officer, without further
appropriation, to complete the work or perform the obligations, as
provided in the rule, regulation or contract. This section shall not
apply to deposits or other financial surety received under MGL c.
41, § 81U, of the general laws, or other general or special
law.