A. 
With submittal of the application for final plan approval, the applicant shall provide one of the following performance guarantees for an amount adequate to cover the total costs of all required reclamation, taking into account the time span of the phasing, or reclamation schedule and the inflation rate for costs:
(1) 
Either a certified check payable to the Town or a savings account or certificate of deposit naming the Town as owner, for the establishment of an escrow account; or
(2) 
An irrevocable letter of credit from a financial institution, establishing funding for the construction or reclamation of the activity site, from which the Town may draw if reclamation or construction is inadequate, approved by the Selectmen.
B. 
The conditions and amount of the performance guarantee shall be determined by the Planning Board with the advice of a licensed professional engineer, Town Road Commissioner, Town Selectmen, and/or Town Attorney at the cost of the applicant, if applicable.
The performance guarantee shall contain a reclamation schedule; cost estimates for each major phase of reclamation, taking into account inflation; provisions for inspections of each phase of reclamation; provisions for the release of part or all of the performance guarantee to the permit holder; and a date after which the permit holder will be in default and the Town shall have access to the funds to finish reclamation.
For any account opened by the permit holder, the municipality shall be named as owner or co-owner and the consent of the municipality shall be required for a withdrawal. Any interest earned on the escrow account shall be returned to the developer unless the municipality has found it necessary to draw on the account, in which case the interest earned shall be proportionately divided between the amount returned to the developer and the amount withdrawn to complete the required improvements.
An irrevocable letter of credit from a bank or other lending institution shall indicate that funds have been set aside for the complete reclamation of the activity site and may not be used for any other project or loan.
Any proof of financial capacity shall be reviewed no later than 30 days before the expiration of the guarantee and adjusted if necessary. The applicant may also request adjustments in the guarantee.
Prior to the release of any part of the performance guarantee, the Board shall determine to its satisfaction, upon the report of a licensed professional engineer and concurrence of the CEO, Road Commissioner and Board of Selectmen, that the reclamation meets or exceeds the design requirements for that portion of the reclamation for which the release is requested.
If, upon inspection, the CEO or other inspecting official finds that any of the required reclamation has not been performed in accordance with the approved plans and specifications, he/she shall so report, in writing, to the municipal officers, the Board, and the permit holder and guarantor. The permit holder shall have 30 days, unless otherwise specified by the CEO, to remedy any insufficiency noted. Thereafter, the municipal officers shall take any steps necessary to enforce the guarantee and remedy the insufficiencies.
Performance guarantees may be required for all off-site improvements required by this chapter when the Board finds that the scale of the improvements warrants.