(A) As a condition of the final release of all performance guaranties posted by an applicant with respect to any development approval within the township, the applicant shall deliver to the Township Clerk, for the purpose of assuring that all improvements installed in accordance with such development approval have been installed in a good and workmanlike manner and that all materials are fit for their intended purpose, a maintenance guaranty in accordance with the following standards:
(1) The maintenance guaranty shall be for a period of two years commencing on the date that the Township Committee finally accepts the improvements as being complete, in an amount not to exceed 15% of the total cost of the improvements as set forth on the Township Engineer's estimate for such improvements completed with § 156.030(A)(1) above. In the event that other governmental agencies or public utilities automatically will own the utilities or improvements which are installed or the improvements are covered by a maintenance guaranty provided by the applicant to another governmental agency, no maintenance guaranty in favor of the township shall be required for such utilities or improvements. Such maintenance guaranty shall be in the form of a surety bond issued by a surety licensed to do business in the State of New Jersey and rated A+ or better by A.M. Best, or a letter of credit issued by a banking institution licensed to do business in the State of New Jersey. Such maintenance guaranty shall be approved and accepted by the Township Committee.
(2) If any time during the period of time prior to expiration of the maintenance guaranty, the Township Committee has reasonable cause to doubt the value, legality, enforceability or effectiveness of such guaranty, the obligor must deliver to the Township Clerk a substitute guaranty, in form and substance equivalent to the guaranty which was required to be in place at the time the status of the original guaranty was questioned. By way of illustration and not limitation, the following shall be instances of reasonable cause to doubt the value, legality, enforceability or effectiveness of such guaranties:
(a) The company issuing the bond shall cease to do business, declare insolvency or bankruptcy or be forced into involuntary bankruptcy.
(b) The bank, savings and loan, credit union, mortgage banking company or other banking or banking-like entity issuing a letter of credit shall become insolvent, be taken over by any governmental or quasi-governmental agency or company or otherwise cease to do business.
(B) If the township determines that any improvements which are covered by such maintenance guaranty have not been completed in a good and workmanlike manner, or that any materials which were incorporated into such improvements are not fit for their intended purpose and the obligor, under such maintenance guaranty, has not corrected the improvements to the satisfaction of the Township Engineer within 30 days after written notice of such defect, the obligor and the surety shall be liable on such guaranty to the Township for the reasonable cost of correcting and/or replacing such improvements, and the township, either prior to or after the receipt of the proceeds of such guaranty, shall have the right, but not the obligation, to complete corrective work or replacements of such improvements which may be required.
(Ord. 945-99, passed 9-13-99)