(A) Security. The maintenance guarantee shall be secured by the credit of any of the following:
(1) An irrevocable and unconditional letter of credit of a federal or state chartered lending institution;
(2) A restrictive or escrow account in a federal or state chartered lending institution; or
(3) Such other financial security approved by the Borough Council (which approval shall not be unreasonably withheld).
(B) Terms.
(1) Such maintenance guarantee shall be in the form approved by the Borough Solicitor and Borough Council, payable to the borough, to guarantee the maintenance and repair of the streets and other public improvements in the subdivision or land development for 18 months from the date of acceptance thereof by the borough.
(2) The applicant shall prove to the satisfaction of the Borough Council that there will be an acceptable system for the long-term maintenance of any stormwater detention basins.
(C) Amount. The amount of the maintenance guarantee shall be determined by the applicant’s engineer, conditioned upon acceptance by Borough Council, but shall not exceed 15% of the actual cost of installation of such improvements.
(D) Release. After a maximum of 18 months from the date of acceptance of said improvements, the borough shall release the maintenance guarantee to the developer (or party posting said maintenance guarantee) if all improvements are in satisfactory condition.
(Ord. passed 2-3-1992)