The performance guaranty shall be approved by the
Municipal Attorney as to form, sufficiency and execution. Such performance
guaranty shall run for a period to be fixed by the Planning Board
but in no case for a term of more than three years. However, with
the consent of the owner and the surety, if there be one, the governing
body may by resolution extend the term of such performance guaranty
for an additional period not to exceed three years. The amount of
the performance guaranty may be reduced by the governing body by resolution
when portions of the required improvements have been installed. If
the required improvements have not been installed in accordance with
the performance guaranty, the obligor and surety shall be liable thereon
to the municipality for the reasonable cost of the improvements not
installed, and upon receipt of the proceeds thereof the municipality
shall install such improvements.