(A) Prior to the approval of the final plat or acceptance by the town of any improvements in any subdivision, the subdivider shall furnish to the town a written warranty against defects which shall guarantee the material and workmanship for a period of not less than one year from the date of the acceptance. The warranty shall be accompanied by a financial guarantee payable to the town equal to at least 15% of the cost of the installation of the improvements as determined by the Subdivision Administrator. The financial guarantee shall be in the form of cash, an irrevocable letter of credit or other instrument readily convertible into cash at face value, either deposited with the town or in escrow with a financial institution.
(B) Upon successful performance of the improvements, as determined by the Board of Commissioners, for the one-year period, the financial guarantee shall be returned to the subdivider. Upon the failure of an improvement to perform within the generally accepted standards for the type improvement as determined by the Board of Commissioners, the subdivider shall be notified and given a reasonable period of time to correct the defects. Should the subdivider fail to act, fail to act in a timely manner, or otherwise fail to correct the defect(s), the Board of Commissioners shall find the subdivider in default.
(C) Upon default, the surety or the financial institution holding the escrow account shall, if requested by the town, pay all or any portion of the escrow fund to the town up to amount needed to complete the repairs based on an estimate by the town. Upon payment, the town, at its discretion, may expend a portion of the funds as deemed necessary to repair all or any portion of the required improvements. The town shall return to the subdivider any funds not spent in making the repairs.
(D) Default on a project does not release the subdivider from liability/responsibility, financial or otherwise, for the performance of the improvements.
(Ord. passed - -)