All improvements required by the municipal agency
shall require the posting of a performance guaranty to assure the
installation of the required improvements prior to final approval
of any subdivision or site plan.
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 borough, a certified check returnable to the
landowner after full compliance or other type of surety approved by
the Borough Attorney. The performance guaranty shall be approved by
the Borough Attorney as to form, sufficiency and execution.
The time allowed for installation of the improvements
for which the performance guaranty has been provided may be extended
by the governing body by resolution. As a condition or as a part of
any such extension, the amount of any performance guaranty shall be
increased or reduced, as the case may be, to an amount not to exceed
120% of the cost of the installation as determined as of the passage
of the resolution.
If the required improvements shall not have
been installed or corrected in accordance with the performance guaranty,
the obligor and surety, if any, shall be liable thereon to the borough
for the reasonable or corrected cost of the improvements not installed
or corrected, and, upon the receipt of the proceeds thereof, the borough
shall install such improvements.
The Mayor and Council shall require the posting
of a maintenance guaranty for a period not to exceed two years after
the final acceptance of the improvement, in an amount not to exceed
15% of the cost of the improvement. In the event that other governmental
agencies or public utilities automatically will own the utilities
to be installed or the improvements are covered by a performance or
maintenance guaranty to another governmental agency, no performance
or maintenance guaranty, as the case may be, shall be required by
the borough for such utilities or improvements.