A minimum of 10% of the performance guarantee must be posted in cash, certified check or irrevocable standby letter of credit.

The remaining 90% of the performance guarantee amount may be posted in cash, certified check, irrevocable standby letter of credit or surety bond in the favor of the Borough.

If the applicant elects to post an irrevocable standby letter of credit, it must be written in the following form which is included as an attachment to this chapter.

All guarantees shall provide for construction of the required improvements within two years of the date of their posting. This time period may be extended by the Governing Body, in the form of a resolution granting such extension provided the Municipal Agency has, if necessary, extended the period of protection pursuant to N.J.S.A. 40:55D-52a. As a condition of this extension the guarantee amount may be adjusted to 120% of the estimated cost to construct the improvements at that time.

All performance guarantees shall remain in effect until formally released by the Governing Body by a resolution.

All guarantees, sureties, and lending institutions are subject to the approval of the Municipal Attorney and the Governing Body.

All site improvements shall be inspected during the time of their installation under the supervision of the Borough Engineer. Prior to the start of construction of any improvements, the applicant shall deposit by cash or certified check with the Borough Clerk the applicable inspection fee required by Section 22-3.

In no case shall installation of underground facilities or any paving work be conducted without permission from the Borough Engineer.

The Engineer's office shall be notified two working days prior to commencement of each of the following phases of construction so that the Engineer or a qualified representative may be present to inspect the work.

Any improvement installed contrary to the plan or plat approval by the Borough shall constitute just cause to void the municipal approval.

Any improvements installed without notice for inspection shall constitute just cause for:

Inspection by the Borough of the installation of improvements and utilities shall not operate to subject the Borough to liability for claims, suits or liability of any kind that may at any time arise because of defects or negligence during construction or at any time thereafter; it being recognized that the responsibility to maintain safe conditions at all times during construction and to provide proper utilities and improvements is upon the owners and his contractor, if any.

Prior to the signing and recording of final major subdivision plats and as a condition of final site plan approval in the case of a site plan, the developer shall enter into an agreement with the Governing Body. This agreement shall be of a form that is acceptable to the Municipal Attorney and one in which the developer agrees to abide by the terms and conditions of the Board approval, construct the required improvements in accordance with the approved plans, agree to maintain the constructed improvements including but not limited to, payment of street lighting charges, snow removal, maintenance of storm drainage, sewer and water facilities. The developer also shall agree that in the event the improvements are not maintained, the Borough can utilize the cash portions of the performance guarantees to immediately attend to items presenting a safety hazard.

Upon substantial completion of required appurtenant utility improvements, and the connection of same to the public system, the obligator may notify the Governing Body in writing, by certified mail addressed in care of the Municipal Clerk of the completion of substantial completion of improvements and shall send a copy thereof to the Municipal Engineer. Concurrent with this notice the obligor shall forward a set of as-built plans for the following:

The Governing Body shall either approve, or reject the improvements, on the basis of the report of the Municipal Engineer and shall notify the obligor in writing, by certified mail, of the contents of said report and the action of said approving authority with relation thereto, not later than 65 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guarantee, except for that portion adequately sufficient to secure provision of the improvements not yet approved; provided that 30% of the amount of the performance guarantee posted is retained to ensure completion of all improvements. Failure of the Governing Body to send or provide such notification to the obligor within 65 days shall be deemed to constitute approval of the improvements and the obligor and surety, if any, shall be released from all liability pursuant to such performance guarantee for such improvements.

If any portion of the required improvements are rejected, the obligor is required to complete such improvements and, upon completion, the same procedure of notification, as set forth in this section shall be followed.

Any release of performance guarantees will be conditioned upon the provisions of a maintenance guarantee to be posted with the Governing Body, in an amount equal to 15% of the performance guarantee amount.