§ 22-308.   Performance Bonds and Escrow Deposits.
   1.   No final plan shall be approved by Borough Council until the improvements required by this Chapter are constructed in a satisfactory manner and approved by Borough Council. In lieu of such construction, Borough Council may grant final approval prior to completion providing:
   A.   The developer enters into an agreement with Borough Council guarantee ing that the improvements will be installed in accordance with the plans, specifications, and schedule approved by Borough Council. This agreement shall also guarantee that no lot will be sold or building constructed in any floodprone area prior to completion of all protective works or measures planned for such lot and necessary access facilities.
   B.   Simultaneous with the execution of the agreement specified in paragraph .A above, the developer offers a fiscal surety to guarantee performance of this agreement and installation of improvements by the developer/owners at their own expense in accordance with the approved plans, specifications, and schedules. The surety bond shall be for 125 percent of the amount of the estimated costs as determined by the Borough Engineer. The surety agreement shall be conditioned upon final approval of the plat. The bond shall be offered by the developer, his agent or an authorized bonding firm. The bond shall consist of a certified check, escrow account, or irrevocable letter of credit in favor of Borough Council.
   2.   All such improvements shall be completed within 2 years of final plan approval. An extension in time for the completion of improvements may be granted at the option of the Borough for a period not to exceed 1 year.
   3.   During the time improvements are being completed, building permits may be issued, except for flood-prone areas. However, no certificate of occupancy shall be issued until all such improvements are completed and dedicated to the Borough.
   4.   Prior to offering any improvement to the governing body, the developer shall furnish a written guarantee (release of liens) that all indebtedness incurred for supplies, material, labor furnished, or engineering and professional services in the construction or improvements shall have been paid in full and that there are no claims for damage or suits against the contractor involving such improvements.
(Ord. 6/6/1977, §308)