[Ord. No. 70, 7/16/1990]
1.
Financial security required by this part shall be in the form of a federal or commonwealth chartered lending institution irrevocable letter of credit, a restrictive or escrow account in such institution or with a financially responsible bonding company, cash or cash equivalent, or such other type of financial security subject to the approval of the township. The bonding company may be chosen by the party posting the financial security, provided that the bonding company or lending institution is authorized to conduct business within the Commonwealth of Pennsylvania and stipulates that it will submit to Pennsylvania jurisdiction and Chester County venue in the event of legal action.
2.
All agreements for required guarantees shall be executed by the applicant or developer and shall be approved by the township provided that such agreement is satisfactory to the township solicitor.
3.
If financial security has been provided in lieu of the completion of improvements required as a condition for the final approval of a subdivision or land development proposal as set forth by this part, the township shall not condition the issuance of a building, grading, or other permit relating to the erection or placement of improvements, including buildings, upon the lots or land as depicted upon the finally approved plan upon actual completion of the improvements depicted upon the finally approved plan. Moreover, if said financial security has been provided, occupancy permits for any building or buildings to be erected shall not be withheld following:
A.
The completion of the construction of new streets as described in section 22-612 in all respects except for the installation of the wearing course.
B.
The completion of all other improvements and utilities as depicted upon the finally approved plan, either upon the lot or lots or beyond the lot or lots in question if such improvements are necessary for the reasonable use of or occupancy of the building or buildings.
4.
In the interest of facilitating financing, when requested by the applicant of a proposal satisfactory to the township in all respects, the board shall furnish the applicant with a signed copy of a resolution indicating approval of the final plan contingent upon the receipt of satisfactory financial security. The final plan or record plan shall not be signed or recorded until the improvements guarantee has been executed. The resolution or letter of contingent approval shall expire and be deemed to be revoked if the financial security agreement is not executed within 90 days unless a written extension is granted by the board. Such extension shall not be unreasonably withheld and shall be placed in writing at the request of the applicant.
5.
The township will pay no interest on monies refunded.