(A) To ensure the construction of the required improvements, the subdivider shall deposit with the Town Engineer an amount in cash or a surety bond equal to the amount of the cost of the work of each recorded increment (as determined by the Town Engineer) guaranteeing that the work will be completed in accordance with town details and specifications. The Town Engineer shall give the applicant his or her receipt for each deposit.
(B) The surety bond shall be executed by the subdivider, as principal, with a corporation duly authorized to transact surety business in the state, as surety. The bond shall be in favor of the town, shall be continuous in form, and shall be conditioned that the total aggregate liability of the surety for all claims shall be limited to the face amount of the bond, irrespective of the number of years the bond is in force. The bond or cash shall be released upon satisfactory performance and acceptance of the work by the Town Engineer, or the bond may be cancelled or the cash withdrawn by the subdivider; provided, that other security satisfactory to the town has been deposited which will cover the obligations of the subdivider which remain to be performed.
(C) In lieu of providing assurance of construction in the manner provided above, the subdivider may provide assurance of construction of subdivision improvements of the recorded plat by delivering to the Town Engineer prior to the recording of said plat an appropriate agreement between an approved lending institution and the subdivider, stating that funds sufficient to cover the entire cost of installing the subdivision improvements, including engineering and inspection costs, and the cost of replacement or repairs of any existing streets or improvements damaged by the subdivider in the course of development of the subdivision, in an amount approved by the Town Engineer, have been deposited with such approved lending institution, or have been committed to be loaned by such lending institution to the subdivider. Such agreement shall provide that such funds in the stated amount are specifically allocated, and will be used by the subdivider or on his or her behalf, only for the purpose of installing the subdivision improvements. The town shall be the beneficiary of such agreement, or the subdivider’s rights thereunder shall be assigned to the town and the Town Engineer shall approve each disbursement of any such funds. The agreement may also contain terms, conditions and provisions normally included by such lending institutions in loan commitments for construction funds, or as may be necessary to comply with statutes and regulations applicable to such lending institutions.
(Ord. 01-95, passed 9-21-1995)