(A) A corporate surety bond or other financing surety submitted in accordance with § 150.04 to guarantee the completion of public improvements shall be in an amount equal to 110% of the estimated cost of installing and constructing the public improvements and shall provide as follows:
(1) An expiration date not less than one year from the date of issuance, or an express provision that the surety or bond will not expire prior to completion, and acceptance by the Board of Trustees of the public improvements;
(2) That 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 60 days before the expiration, and that the surety or bond shall not expire absent this notice;
(3) That failure of the subdivider to complete the public improvements secured by the surety or bond prior to the scheduled completion date shall be considered a default by the subdivider and the issuing institution;
(4) That failure of the subdivider to submit a new surety or bond in accordance with this section upon expiration of the surety or bond shall be considered a default by the subdivider and the issuing institution;
(5) That the surety or bond shall be irrevocable and shall be clearly marked “irrevocable;”
(6) That the surety or bond will not be discharged or reduced by the issuing institution except upon written certificate of the Village Clerk that the surety or bond may be discharged or reduced in accordance with this section and the amount of the discharge or reduction;
(7) That the issuing institution will pay all attorney’s fees and other costs reasonably incurred in enforcing collection of the financing surety in the event that the issuer wrongfully fails to honor the village’s demand for payment under the terms of the surety or bond.
(B) The requirements of division (A) may be modified or waived upon motion, resolution, or ordinance of the Village Board if the Board first determines that the requirements of division (A) would impose an unreasonable hardship upon the subdivider and that the absence of a surety or bond submitted in accordance with division (A) will not materially affect the guarantee that the requirements of this chapter will be met.
(C) A subdivider may, at its option, submit separate sureties or bonds for each public improvement to be accepted.
(D) 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) A sworn statement by the subdivider’s engineer of the cost of work performed and labor and materials provided toward the completion of the improvement, an estimation of the amount and cost of work, labor, and material remaining to be performed or provided in order to complete the improvement; and
(2) Written waivers of lien for all labor or material provided for public improvement where public funds are involved.
(E) 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 the 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 110% of the estimated cost of work, labor, and material remaining to be performed or provided in order, to complete the improvements; and
(3) A partial reduction or discharge of the financing surety may be approved upon certificate of the Village Engineer; however, the certificate shall not be construed as partial or complete acceptance of the improvement for which the work was performed or labor and materials provided.
(F) When the subdivider has supplied all of the documents or materials required by this chapter 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 the request within 30 days of the subdivider’s application. If the subdivider’s application is disapproved, a written statement of the reasons for the disapproval shall be given the subdivider. The subdivider and the Village Board may mutually agree to extend the 30-day period. In addition, the 30-day period shall be extended as necessary in the event that weather prevents the village from verifying the facts contained in the subdivider’s application.
(G) A surety or bond submitted in accordance with this section shall be discharged upon acceptance by the Village Board of all improvements for which the surety or bond was submitted and submission of a maintenance bond guaranteeing the improvement against defects in materials or workmanship in the amount of 10% of the estimated cost of the improvement to be effective for a period of one year from the date of acceptance.
(H) 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 chapter.