Before
the Planning Commission approves any final plan and as a prerequisite
for approval, the developer shall deliver to Borough Council, public
utility, or Municipal Authority, a performance guarantee in the amount
of 110% of the cost of all improvements required by this Chapter,
as determined in accordance with the procedures set forth in the Municipalities
Planning Code, as amended, in a form and with a surety as determined
in accordance with the procedures set forth in the Municipalities
Planning Code as amended, guaranteeing the construction and installation
of all such improvements before the date fixed in the formal action
of approval or accompanying agreement for completion of the improvements.
Upon written application signed by both the obligor and surety of
the performance guarantee in a form approved by the Borough Solicitor,
the Borough Council, public utility, or Municipal Authority may, at
their discretion, extend said period by not more than three additional
years. If the party posting the financial security requires more than
one year from the date of posting of the financial security to complete
the required improvements, the amount of financial security may be
increased by an additional 10% for each one-year period beyond the
first anniversary date from posting of financial security or to an
amount not exceeding 110% of the cost of completing the required improvements
as reestablished on or about the expiration of the preceding one-year
period by using the above bidding procedure. In the event of default
under a performance guarantee, the proceeds of the performance guarantee
received by the Borough, public utility, or Municipal Authority shall
be used to construct and install the improvements.