A. Requirements: A corporate surety bond or other financing surety submitted in accordance with section 9-1-8 of this chapter to guarantee the completion of public improvements shall be in an amount equal to one hundred twenty five percent (125%) of the estimated cost of installing and constructing said public improvements and shall provide as follows:
1. Expiration Date: An expiration date not less than one year from the date of issuance, or an express provision that such surety or bond will not expire prior to completion and acceptance by the board of trustees of said public improvements;
2. Written Notice: Written notice shall be given by certified or registered mail to the village clerk as to the expiration date, if any, of the surety bond not less than sixty (60) days before said expiration, and the surety or bond shall not expire absent such notice;
3. Failure To Complete Improvements: Failure of the subdivider to complete the public improvements secured by such surety or bond prior to the scheduled completion date shall be considered a default by the subdivider and the issuing institution;
4. Failure To Renew: Failure of the subdivider to submit a new surety or bond in accordance with this section upon expiration of such surety or bond shall be considered a default by the subdivider and the issuing institution;
5. Irrevocable: The surety or bond shall be irrevocable and shall be clearly marked "irrevocable";
6. Discharge Or Reduction: The surety or bond will not be discharged or reduced by the issuing institution except upon written certificate of the village clerk that said surety or bond may be discharged or reduced in accordance with this section and the amount of such discharge or reduction;
7. Costs Of Collection: The issuing institution will pay all attorney fees and other costs reasonably incurred in enforcing collection of such financing surety in the event that the issuer wrongfully fails to honor the village's demand for payment under the terms of such surety or bond.
B. Modification Or Waiver Of Requirements: The requirements of subsection A of this section may be modified or waived upon motion, resolution, or ordinance of the village board if the board first determines that the requirements of subsection A of this section would impose an unreasonable hardship upon the subdivider and that the absence of a surety or bond submitted in accordance with said subsection A of this section will not materially affect the guarantee that the requirements of this title will be met.
C. Separate Sureties Or Bonds: A subdivider may, at its option, submit separate sureties or bonds for each public improvement to be accepted.
D. Partial Reduction Or Discharge: A surety or bond submitted in accordance with this section to guarantee the completion of public improvements may be reduced or partially discharged prior to completion and acceptance of such public improvements by the village board upon the following showing by the subdivider and the certificate of the village engineer:
1. Statement Of Engineer: A sworn statement by the subdivider's engineer of the cost of work performed and labor and materials provided toward the completion of such improvement, an estimation of the amount and cost of work, labor, and material remaining to be performed or provided in order to complete such improvement.
2. Labor And Material Waivers Of Lien: Written waivers of lien for all labor or material provided for such public improvement where public funds are involved.
E. Restrictions For Partial Reduction Or Discharge: Any partial reduction or discharge of a surety or bond submitted in accordance with this section to guarantee completion of public improvements shall be subject to the following restrictions:
1. No partial reduction or discharge approved on account of work performed and labor and materials provided shall exceed the cost of such work, labor, or materials;
2. No partial reduction or discharge shall be approved to the extent that it would cause the balance of funds remaining to be less than one hundred twenty five percent (125%) of the estimated cost of work, labor, and material remaining to be performed or provided in order to complete such improvements;
3. A partial reduction or discharge of such financing surety may be approved upon certificate of the village engineer, however, such certificate shall not be construed as partial or complete acceptance of the improvement for which said work was performed or labor and materials provided.
F. Request For Discharge:
1. Action By Board: When the subdivider has supplied all of the documents or materials required by this title to be submitted in support of its request for discharge of a surety or bond or acceptance of the public improvement as completed, the village board shall approve or disapprove such request within thirty (30) days of the subdivider's application.
2. Disapproval Of Request: If the subdivider's application is disapproved, a written statement of the reasons for such disapproval shall be given the subdivider.
3. Mutual Agreement To Extend: The subdivider and the village board may mutually agree to extend the thirty (30) day period. In addition, the thirty (30) day period shall be extended as necessary in the event that weather or other events prevent the village from verifying the facts contained in the subdivider's application.
G. Discharge; Maintenance Bond: A surety or bond submitted in accordance with this section shall be discharged upon acceptance by the village board of all improvements for which said surety or bond was submitted and submission of a maintenance bond guaranteeing said improvement against defects in materials or workmanship in the amount of ten percent (10%) of the estimated cost of said improvement to be effective for a period of one year from the date of acceptance.
H. Binding Effect: This section shall be binding upon and applicable to all subdividers, developers, and successors in title of property which is subdivided or platted in accordance with this title. (1997 Code)