[HISTORY: Adopted by the Town Board of the Town of Cortlandt 6-5-1990
as L.L. No. 7-1990. Amendments noted where applicable.]
The Town of Cortlandt, over the past years, has experienced some difficulty
in collecting on performance bonds posted to insure the completion of improvements
or other performance on the part of property owners and developers. It is
because of this that the Town Board is desirous of exercising the power granted
to it pursuant to the Municipal Home Rule Law of the State of New York to
adopt a local law which would supersede the provisions of §§ 277
and 280-a, etc., of the Town Law, and all other local laws and ordinances
with respect to the type of performance security which would be acceptable
to the town, as well as to provide for the posting of letters of credit, assignment
of bank accounts and negotiable instruments and cash as collateral security
on any person's part with respect to any application or permit application
by any board or department of the town, except as hereinbefore provided, for
which performance bonds or other forms of security are now required or provided.
Following the effective date of this chapter, the Town of Cortlandt
Town Board and all boards, agencies and departments of the town will only
accept as performance security a letter of credit or an assignment of a certificate
of deposit or savings account or cash as performance security. Said letter
of credit or certificate of deposit or savings account shall be drawn on or
deposited in a bank insured by the Federal Deposit Insurance Corporation or
some other such federal agency.
The Town Board of the Town of Cortlandt, following the adoption of this
chapter and from time to time thereafter, shall by resolution approve of a
standard letter of credit and assignment of deposit or passbook form that
is acceptable to the Town Board, and said letter of credit and assignment
of deposit form shall be the type used by all parties posting performance
collateral in favor of the Town of Cortlandt.
This chapter shall supersede §§ 277 and 280-a of the
Town Law, and all other local laws and ordinances providing for the posting
of performance security, only in respect as to the form of that security and
shall not vary or supersede any of the requirements with respect to determining
the amount of such performance security or the manner in which approvals are
granted or permits issued.
Upon a showing of hardship by any applicant, the Town Board may, after
due deliberation and consideration, accept alternate forms of performance
security, provided that such alternate forms of performance security are no
less protective of the interests of the town than would be the security otherwise
required by this chapter.
Any person posting a performance security in compliance with this chapter
shall not need to have any further approval of the Town Board, and, upon the
certification of the Town Attorney that said letter of credit or assignment
of certificate of deposit or cash deposit bank account is acceptable and in
compliance with this chapter, said performance security shall be deemed to
be acceptable to the Town Board and approved thereby.
