§ 175-76. Bonding and cash requirements.

   A.   The performance guaranty shall be the approved performance guaranty estimate and as surety a performance bond in which the applicant shall be principal, the bond to be provided by an acceptable surety company licensed to do business in the State of New Jersey, an irrevocable letter of credit drawn on a banking institution located or licensed to do business in the State of New Jersey or such other form of security as may be approved by the Town Attorney, or cash, or a certified check shall be deposited with the Town of Hammonton by payment to the Town Treasurer. The performance guaranty in favor of the town shall be in an amount not to exceed 120% of the cost of the installation and improvements. The Town Treasurer shall issue its receipt for such cash deposits and shall cause the same to be deposited in a bank named by the town for this purpose to be retained as security for completion of all requirements and to be returned to the subdivider on completion of all required work and expiration of the period of maintenance guaranty or, in the event of default on the part of the subdivider, to be used by the Town of Hammonton to pay the cost and expense of obtaining completion of all requirements. Every bond, whether cash or surety, shall contain a clause to the effect that the obligation shall remain in full force and effect until such time as certification is received from the Board Engineer that the principal has met and complied with all specifications and requirements for which said cash or surety bond has been posted.

   B.   Ten percent of the amount of the approved performance guaranty estimates shall be deposited with the town by the applicant in cash or irrevocable letter of credit or other such security as approved by the Town Attorney, that can be readily converted into cash. The remaining 90% may be in cash, surety bond or other securities or guaranties approved by the Town Attorney. In the event of default, the ten-percent fund herein mentioned shall be first applied to the completion of the requirements and the cash or the surety bond shall thereafter be resorted to, if necessary, for the completion of the requirements. The cash or surety bond may recite the foregoing provisions. The Board Engineer's determination that the principal has defaulted in his obligation shall be binding and conclusive upon the principal.