(A) The Board 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 Board to provide surety for the satisfactory completion of the improvements required by the construction permit and shall name the City of Lawrence as a party who can enforce the obligations hereunder. The bond may be a part of the total bonding required by the Plat Committee of Marion County Metropolitan Development Commission.
(B) The Board 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 Board, covenants of the applicant making provision for maintenance of the sanitary sewer by the applicant for a period of three years from the date of acceptance by the Board. The bond shall name the City of Lawrence as a party who can enforce the obligations hereunder.
(C) In instances where the Board has required a bond pursuant to this section, the Board 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.
(D) If the surety on any bond furnished to the Board becomes a party to a supervision, liquidation or 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, 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 Board.