The furnishing of a performance guarantee in favor of the township in an amount not to exceed 120% of the cost of installation for improvements it may deem necessary or appropriate including streets, grading, pavement, gutters, curbs, sidewalks, street lighting, shade tree, surveyor's monuments, water mains, culverts, storm sewers, sanitary sewers or other means of sewage disposal, drainage structures, erosion control and sedimentation control devices, public improvements of open space and, in the case of site plans only, other on-site improvements and landscaping. Such guarantees may consist of cash which shall be a minimum of 10% of the total performance guarantee as recommended by the planning board. Performance guarantees shall be approved by the township attorney as to form, sufficiency and execution.
1.
A letter of credit shall be an acceptable form of performance guarantee if approved by the township attorney and only under the following conditions:
2.
It is irrevocable for an initial period of at least one year with automatic one year renewal unless the bank notifies the township in writing by certified mail at least 90 days before the initial date of expiration or each anniversary of such date that it will not be renewed;
3.
If the letter of credit is not renewed the township shall have the right to immediately draw a draft on sight if the developer's performance is not satisfactory as of that date, or to draw a draft 30 days after receipt of said notice if, after notification by the municipality that the letter of credit will not be renewed, the developer fails to submit a satisfactory replacement performance guarantee; and
The developer agrees to cease and desist all such work upon receipt of notification from the municipality that the letter of credit will not be renewed until such time as a satisfactory replacement performance guarantee is submitted; and
4.
The developer shall execute any agreement(s) required by the township attorney confirming the conditions set forth herein prior to the township's acceptance of said letter of credit.