No final plat shall be approved by the Planning Board
until the completion of all such required improvements has been certified
to the Planning Board by the Municipal Engineer, unless the subdivision
owner shall have filed with the municipality a performance guaranty
sufficient in amount to cover the cost of all such improvements or
uncompleted portions thereof as estimated by the Municipal Engineer
and assuring the installation of such uncompleted improvements on
or before an agreed date. Such performance guaranty may be in the
form of a performance bond which shall be issued by a bonding or surety
company approved by the governing body, a certified check, returnable
to the subdivider after full compliance or any other type of surety
approved by the Municipal Attorney. 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 is one, the governing body may, by resolution, extend the
term of such performance guaranty for any 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
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.