(A) Actions for the forfeiture of bonds can be commenced in two ways:
(1) The Building Commissioner may deliver the bond of a contractor to the City Attorney who may initiate proceedings to forfeit a bond:
(a) As a penalty whenever any listing or license issued pursuant to this chapter is suspended or revoked.
(b) As a penalty for repeated code violations by a contractor, his agents, or employees.
(c) To indemnify the city against any loss, damage, or expense sustained by the city by reason of the conduct of the contractor, his agents, or employees.
(d) To secure payment of any fees owed to the city pursuant to this chapter which have become delinquent, after reasonable notice has been given to the contractor of the delinquency.
(2) A person, partnership, or corporation which holds a property interest in real estate on which construction activity has occurred may, through counsel, bring an action against the bond for expenses necessary to complete construction activity or correct code deficiencies therein after written notice of the code deficiency has been given to the contractor and after the contractor is given a reasonable opportunity to complete or correct performance. If such a person, partnership, or corporation prevails in any action brought under this section, he may also be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses (including attorney fees based on actual time expended) determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys fees would be inappropriate.
(B) Upon forfeiture of this bond or any part thereof, the person, partnership, or corporation so penalized shall be required to replenish, maintain, and satisfy the statutory amount required by applicable provision of this chapter.
(Ord. 29-1977, passed 10-17-77)
Statutory reference:
City authorized to impose bonds, see IC 36-7-2-4