(a) Any person developing or constructing any real estate improvement in the Village, whether residential, commercial or industrial, shall post a 100 % performance bond, based upon the estimated cost of the improvement, to guarantee the performance of the contractor or developer, and shall post a maintenance bond in the amount of 25% of the estimated cost of the improvement.
(Ord. 847. Passed 10-15-74.)
(b) As an alternative to the posting of the 100% performance bond provided in division (a) of this section, a developer may supply the Village with a letter of credit, to be executed by the lender or financial institution supplying funds to the builder. Such letter of credit must first be reviewed and approved by the Mayor and the Law Director and must provide that the lender or financial institution will make no disbursements for storm or sanitary sewers, water, paving or other improvements covered by a performance bond unless and until approval is received, in writing, from the Village Engineer for the work. If interim disbursements are made on the funds by the lender or financial institution to the borrower-contractor, all orders for disbursements must contain the signature of the Village Engineer approving and accepting the work as performed. No final disbursements shall be made to the borrower-contractor until the Village Engineer has completely and finally approved all work done as being in accordance with his or her plans and specifications, the ordinances and regulations of the Village or the laws of the State.
(Ord. 858. Passed 10-15-74.)
(c) The 25% maintenance bond provided in division (a) of this section shall be held by the Village for one year after the acceptance and/or dedication of the improvement by the Village, and shall be returned at the end of that year only upon the certification, in writing, of the Village Engineer, that the improvement contains no violation of this Building and Housing Code, the Subdivision Regulations of the Village or any law of the State relative to construction of the improvement.
(Ord. 847. Passed 10-15-74.)