(A) Financial guarantee arrangements; exceptions. In lieu of the actual installation of required public improvements, the Board, on recommendation of the Commission, may permit the proprietor to provide a financial guarantee of performance in one or a combination of the following arrangements for those requirements which are over and beyond the requirements of the County Road Commission, County Drain Commissioner or any other agency responsible for the administration, operation and maintenance of the applicable public improvement. The Commission may recommend and the Board may waive financial guarantees of performance under this chapter for sidewalks, street lights or street trees. In case these improvements are specified, completion shall be required prior to the issuance of occupancy permits.
(B) Performance or surety bond.
(1) Accrual. The bond shall accrue to the township, covering construction, operation and maintenance of the specific public improvement.
(2) Amount. The bond shall be in an amount equal to the total estimated cost for completing construction of the specific public improvement, including contingencies as estimated by the Board.
(3) Term length. The term length in which the bond is in force shall be for a period to be specified by the Board for the specific public improvement.
(4) Bonding or surety company. The bond shall be with a surety company authorized to do business in the state, acceptable to the Board.
(5) Escrow agreement. The escrow agreement shall be drawn and furnished by the Board.
(C) Cash deposit, certified check, negotiable bond or irrevocable bank letter of credit.
(1) Treasurer, escrow agent or trust company.
(a) A cash deposit, certified check, negotiable bond or an irrevocable bank letter of credit, such surety acceptable by the Board, shall accrue to the township.
(b) These deposits shall be made with the Township Treasurer or deposited with a responsible escrow agent or trust company, subject to the approval of the Board.
(2) Dollar value. The dollar value of the cash deposit, certified check, negotiable bond or an irrevocable bank letter of credit shall be equal to the total estimated cost of construction of the specific public improvement, including contingencies as estimated by the Board.
(3) Escrow time. The escrow time for the cash deposit, certified check, negotiable bond or irrevocable bank letter of credit shall be for a period to be specified by the Board.
(4) Progressive payment. In the case of cash deposits or certified checks, an agreement between the Board and the subdivider may provide for progressive payment out of the cash deposit or reduction of the certified check, negotiable bond or irrevocable bank letter of credit to the extent of the cost of the completed portion of the public improvement, in accordance with a previously entered into agreement.
(D) Transfer of subdivision ownership. When the proprietorship of a subdivision changes through the sale of property before all improvements have been completed and accepted by the County Road Commission and the township, the original proprietor shall be held liable for completion of the improvements and any damage that may be incurred by contractors, unless the original proprietor in his or her contract of sale shall specifically transfer the obligation for completion of improvements, cleanup, and damages incurred to the new proprietor of the subdivision. The original proprietor shall notify the Township Board in writing within ten days of the transfer that the original bonds have been transferred to the new proprietor.
(Prior Code, § XII-6.36)