The purpose of this appendix is to establish a procedure which will insure performance guarantees for underground and surface improvements in all subdivisions, planned developments, and other projects. This appendix as presented herein is not intended to change the subdivision ordinance which regulates all improvements but to clarify § 156.23.
(A) The completion bond shall be acknowledged before a notary public by the principal and surety and shall be substantially the same form.
STANDARD COMPLETION BOND
1. KNOW ALL MEN BY THESE PRESENTS, THAT WE, as principal and as surety, are firmly bound to the Village of Orland Hills, Illinois, in the penal sum $ , lawful money of the United States of America, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and assigns, jointly and severally, by these presents.
The condition of the above obligation is such that:
WHEREAS, has obtained, according to law and ordinances of the Village of Orland Hills, approval of the (Plat of ), being a Subdivision of in County, Illinois, conditioned upon (a) that by date the making of certain land improvements, to wit: as more fully described in plans dated and prepared by ; and (b) the execution and delivery of this bond.
NOW, If the said shall well and faithfully and in a good and workmanlike manner of good materials according to law and ordinances of the Village of Orland Hills, and in conformity with said plans dated , construct said improvements, pay for all labor and materials used therein and pay all inspection fees payable to said Village by reason of such construction.
THEN THIS OBLIGATION shall be null and void; otherwise the same shall remain in full force and effect.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 19 .
Principal
Surety
2. NOTARY CERTIFICATE
STATE OF ILLINOIS ) ss
COUNTY OF )
I, , Notary Public in and for said County, in the state aforesaid, do hereby certify that , personally known to me to be the same persons whose names are subscribed to the foregoing instrument, appeared before me this day in person and acknowledge that they signed the above instrument as their own free and voluntary act for the uses and purposes therein set forth.
Given under my hand and Notarial Seal this day of , 19 .
Notary Public
(B) The escrow agreement required by § 156.23 shall be in substantially the same form as follows:
STANDARD ESCROW AGREEMENT
This Agreement made and entered into this day of , A.D. 19 by and between of
(name)
, hereinafter
(address)
sometimes referred to as "Owner", the VILLAGE OF ORLAND HILLS, a Municipal Corporation of the State of Illinois, hereinafter sometimes referred to as "Village", and , an Illinois banking corporation, sometimes hereinafter referred to as "escrowee".
W I T N E S S E T H:
WHEREAS, Owner is the legal title owner of the following described parcel of real property located in the Village and described as follows, and sometimes hereinafter referred to as the "subdivision, to wit:
(DESCRIPTION)
WHEREAS, Owner has applied for approval of a plat of subdivision of said land to be known as ; and
WHEREAS, the Village of Orland Hills Subdivision Regulations Ordinance, as amended, requires as a condition of such approval and recording of such plat, among other things, the guaranteeing of installation of certain public improvements in accordance with plans and specifications approved by and on file with the Village Engineer, or and in accordance with the Ordinances of said Village; and,
WHEREAS, the Owner has submitted to said Village and said Village has approved plans and specifications entitled: prepared by
(Engineer)
for the construction of required public improvements as described in the aforesaid plans and specifications, sometimes hereinafter called the improvements, and,
WHEREAS, the Owner has requested Village to waive the furnishing of a bond as required by its said Subdivision Ordinance, as amended, and to accept in lieu thereof a deposit of $ to be deposited in an escrow in the manner hereinafter directed; and,
WHEREAS, streets, sewer and water are required in said subdivision; and
WHEREAS, Village is willing to enter into this Agreement and to grant approval of the said plat upon the condition that the deposit be made in the manner herein provided shall be used prior to the termination of the escrow, as herein provided solely to pay:
A. The actual costs of construction of the aforesaid street, sewer and water improvements;
B. The engineering and inspection fees of the Village;
C. The costs of maintaining said improvements for a period of one year after the date an acceptance of said improvements by Village, sometimes hereinafter referred to as the one year maintenance period; and
D. Any customary expense of the subdivider in meeting any requirements of the Ordinances of Village pertaining to the aforesaid Subdivision, in the event that the Owner fails to meet said requirements and, Owner further agrees that sufficient funds shall be maintained at all times on deposit with escrowee for such purposes; and,
WHEREAS, the Owner, in consideration of the waiver of a Subdivision bond and the approval to be made of such plat of Subdivision by the Village, agrees to:
A. 1. Make and pay for the public improvements described in the aforesaid plan and specifications;
B. 2. Pay for all engineering and inspection fees incurred by the Village as a result of the construction of improvements and development of the Subdivision and whether incurred prior to, on or after the date of this agreement;
C. 3. Pay for the costs of maintenance of the improvements during the one year maintenance period; and
D. 4. Pay all customary expense of the subdivider in meeting any requirements of the ordinances of the Village pertaining to the aforesaid Subdivision, all of the foregoing, except C above, within two (2) years from the date hereof, and from the said escrow deposit to the extent of the monies therein and otherwise by Owner as may be necessary.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereincontained, and other good and valuable considerations, the parties hereto do covenant and agree each with the other as follows:
1. That Owner will deposit with the escrowee the sum of $ to be held by the escrowee, subject to the terms and provisions hereof, and that no other agreement with regard to the holding or disbursement of said funds shall be in effect unless it is approved in writing by Owner, filed by Owner with the Clerk of Village, approved in writing by Village, and a copy thereof certified by the Clerk of Village delivered to the escrowee, and attached to this Agreement.
2. Escrowee shall hold said sum on deposit to be disbursed from time to time payout orders issued by Village Engineer or Village in payment for work as follows:
a. The cost of installation of the aforesaid street, sewer and improvements;
b. Payment for all costs of engineering and inspection fees incurred by the Village as a result of the construction of the improvements in and development of the Subdivision and whether incurred prior to, on, or after that date of this Agreement;
c. Payment of the costs of maintenance of said improvements during the one year maintenance period; and
d. Payment of all customary expenses of the subdivider in meeting any requirements of the Ordinances of Village pertaining to the aforesaid Subdivision.
Village or escrowee shall not be required to investigate the property of any payout orders other than as they deem necessary in their own interest, if said payout orders are in writing executed by the Village Engineer, the escrowee shall not be required to investigate the propriety of any payout orders that it deems necessary in its own interests of said payout orders are in writing executed by Village.
3. That if, at any time before the construction of all required improvements has been completed, the balance remaining on deposit with escrowee is not sufficient, in the sole judgement of Village, to cover all costs as enumerated in paragraph 2 above, or, if by reason of any order, decree or writ of any court, or for any other reason, the money deposited in said escrowee shall be withheld, diminished or otherwise unavailable for the purposes expressed herein for which said deposit was made, Owner agrees to cause to be deposited with escrowee such additional reasonable sum of money as shall be required by Village to complete the construction of the improvements and the performance of this Agreement or Owner shall provide such other guarantee of said performances as may be required by Village (e.g. irrevocable straight commercial letter of credit).
4. The parties further agree that upon acceptance by the President and Board of Trustees of Village of the said public improvements as referred to by adoption of a resolution, and upon payment of Items a and b as specified in Paragraph 2 of this Agreement, Village agrees that any balance remaining undisbursed shall be refunded to Owner except the sum of $ which shall be withheld for a period of one (1) year to pay Items c and d as specified in Paragraph 2 of this Agreement, to the extent that said costs have not been previously paid by Owner, and such sums shall be paid from said undisbursed balance of funds for such purposes on the written direction of the Village to the Escrowee. Upon the expiration of the one year maintenance period, Escrowee shall, upon receipt of notice in writing from the Village Engineer that all requirements of the ordinances of Village applicable to the aforesaid subdivision and public improvements have been met and the costs of maintaining the improvements during the one year maintenance period have been paid, pay over to owner or shall apply in reduction of the principal balance of Owner's development loan, without further demand or notice, any balance of funds then remaining undisbursed under said letter of credit.
5. In the event that the Village Engineer shall determine, in the sole exercise of his judgement, that Owner has failed to install such improvements in accordance with said plans and specifications, or has failed to maintain, repair or replace the same as hereinabove provided, or has failed to maintain a sufficient balance of funds under said letter of credit as provided in paragraph 3 above, he shall advise Owner of same in writing (with copy to Escrowee), giving Owner sixty (60) days (weather permitting) to cure such default. If owner fails to cure said default, it is agreed that Village may, at its option, declare Owner in default and, upon written notification to Escrowee of such declaration of default, all money on deposit pursuant to this Agreement shall and may be disbursed by Escrowee for the purpose of curing such default of Owner solely upon authorization of Village Engineer and Escrowee shall be released by Owner as to such payment or payments.
6. In the event said improvements are not accepted by the President and Board of Trustees of Village within two (2) years from the date hereof, and if Escrowee thereafter shall elect by a writing delivered to Village to terminate its letter of credit issued pursuant hereto, Village shall be limited to one (1) year from the date of said writing to complete said improvements and to authorize payment of such funds as are necessary therefor out of the funds held by Escrowee. If Village shall fail to complete said improvements within one (1) year from date of said writing, Escrowee, at its option, may apply all or any part of such funds to the completion of said improvements or to the reduction of Owner's indebtedness to Escrowee, if any, with respect to the above described real property, without the authority, direction or approval of any other party to this Agreement and, thereupon, Escrowee shall be fully relieved from the terms and conditions of the Agreement and released from its obligations under the letter of credit delivered pursuant to this Agreement, provided that any such funds then remaining undisbursed shall be paid and delivered to Owner. Notwithstanding any portion of this paragraph to the contrary upon acceptance of said improvements by the President and Board of Trustees, either upon completion by Owner or Village, Escrowee will retain the sum of $ for the one year maintenance period as provided in paragraph 4 hereof.
7. Village agrees that it will sign said plat of subdivision when, but not before, Owner and Escrowee have executed this Agreement and Owner has made the foregoing escrow deposit.
8. If at any time the Village Engineer shall notify Escrowee in writing that the balance of funds then remaining undisbursed under said letter of credit is more than sufficient to cover the cost of construction, fees, and maintenance hereinabove provided, which said notice shall specify the reduced balance then deemed sufficient, and if Escrowee shall concur in such development, Escrowee shall pay over to Owner or shall apply in reduction of the principal balance of owner's development loan, any excess of funds over such reduced balance then remaining undisbursed under said letter of credit.
9. This Agreement shall be binding upon and shall inure to the benefit of each of the respective parties and their respective successors and assigns.
IN WITNESS WHEREOF, the parties hereto have set their respective hands and seals the day and year first above written.
Owner
ESCROWEE VILLAGE OF ORLAND HILL, a Municipal Corporation
BY: BY:
President
ATTEST: ATTEST:
Clerk
(Notarizations to be added)
(Ord. 77-05, passed 4-6-77)