(A) The Director may, as a prerequisite to the issuance of a construction permit, require the posting of a performance bond from a company licensed by the State of Indiana to provide the surety. The bond shall be equal to 100% of the contract amount or an amount established by the Director to provide surety for the satisfactory completion of the improvements required by the construction permit and shall name the City of Lawrence as the party who can enforce the obligations thereunder. The bond may be a part of the total bonding required by other agency, department or private entity requiring bonding.
(B) The Director may, as a prerequisite to acceptance of a sanitary sewer or lift station, require the posting of a maintenance bond in an amount not to exceed 20% of the contract amount or, subject to the approval by the Director, provision for maintenance, for a period of three years from the date of acceptance by the Department. The bond shall name the City of Lawrence as the party which can enforce the obligations thereunder.
(C) In instances where the Director has required a bond pursuant to this section, the Director may, as an alternative to the posting of the bond, accept other appropriate security, such as a properly conditioned irrevocable letter of credit, which meets the same objectives as the bonds described in this section, subject to approval of any other agency, department or private entity whose interests are protected by the same bonding requirement.
(D) If the surety on any bond furnished to the Department becomes a party to a supervision, liquidation, rehabilitation action pursuant to I.C. 27-9 et seq., or its right to do business in the state is terminated, it shall be required that, within 30 days thereafter, a substitute bond and surety be provided, both of which must be acceptable to the City. Failure to obtain a substitute bond within the stated timeframe shall be cause for revocation or suspension of the construction permit until the time that the bond is furnished to the Department.