The Planning Board may require the posting of an improvement guarantee as is reasonably necessary to ensure the proper installation of all off-site improvements required as conditions of approval. The nature and duration of the guarantee shall be structured to achieve this goal without adding unnecessary costs to the applicant. The financial guarantee options are:
A.
A performance bond from the surety bonding company authorized to do business in the State of Maine, which bond shall be payable to the Town of Madison.
B.
An irrevocable letter of credit from a bank or other reputable institution authorized to do business in the State of Maine, satisfactory to the Planning Board and in a form satisfactory to said Board, which letter of credit shall certify the following:
(1)
That the applicant does guarantee funds in a specified amount and for a specified duration;
(2)
That, in case of failure on the part of the applicant to satisfactorily complete the project within the required time period, the creditor shall pay to the Town immediately, and without further action, such funds as are necessary to finance the project's proper completion up to the credit limit stated in the letter.
C.
Evidence that cash has been deposited in an escrow account at a bank or other reputable institution having an office in the Town of Madison and acceptable to the Planning Board, and the escrow agreement acceptable to the Planning Board. The agreement shall provide that in case of failure on the part of the applicant to satisfactorily complete the project within the required time period, the escrow agent shall pay to the Town immediately, and without further action, such funds as are necessary to finance the proper completion of said project, up to the original cash deposit into the escrow account.
D.
A letter from a bank, similar financial institution, or a government agency demonstrating that credit is available to finance the proposed project or that the funding institution intends to fund the project, indicating the amount of funds and the specified uses, will be acceptable if compliance with Subsections A through C of this section would be cost prohibitive as determined by the Planning Board.
E.
The most recent corporate annual report(s) of the applicant, or a parent company of the applicant, indicating sufficient financial capacity to fund or obtain financing for the development together with explanatory material interpreting the report, will be acceptable if compliance with Subsections A through D of this section is determined by the Planning Board to be infeasible for the applicant.