The applicant shall guarantee all improvements required by Chapter 4 of this Title against defects in materials and workmanship for a period of two (2) years from the date of acceptance of public improvements or approval of private improvements by the Village. The applicant agrees to repair or replace any of said improvements which, during said two (2) year period after acceptance, shall become damaged or deficient due to defective materials or workmanship or otherwise.
(A) Conditions of Guarantee: The applicant shall establish a cash escrow account or provide a letter of credit in the amount of five percent (5%) of the final construction costs of the improvements to guarantee cost of replacement of defective materials within the limits of the improvements. Said escrow account or letter of credit shall remain in force for the aforesaid two (2) year maintenance period and shall be for use by the Village to effect such repairs deemed necessary for public safety and which the applicant has neglected to repair for a forty-eight (48) hour period after notification. Disbursements from the cash escrow account or pursuant to the letter of credit shall be made solely upon the direction of the Village and shall not be subject to approval or disapproval by the applicant or escrowee or the financial institution issuing the letter of credit or their agents.
(B) Return of Funds: Within forty-five (45) days following the two (2) year maintenance period, the escrowee or the financial institution issuing the letter of credit shall pay over to the applicant, without further demand or notice, any balance of funds then remaining undisbursed under said letter of credit or escrow account. (Ord. 93-5, 5-24-93)