The performance guaranty or maintenance guaranty required herein must constitute an unconditional payment obligation of the issuer running solely to the borough. The performance guaranty must provide that it will remain in full force and effect and shall not be terminated until it is released by the borough. The applicant may submit an Irrevocable Letter of Credit as a performance guaranty so long as it provides for an initial one-year term and for its automatic renewal for a period of at least one year at the expiration of its initial term. Such Letter of Credit will further provide that it will thereafter be automatically renewed by the surety until released by the borough or until the surety provides not more than 90 days or not less than 60 days' notice by certified mail, return receipt requested or express mail to the Borough Clerk that it wishes to terminate its Letter of Credit as provided herein. In the event the surety gives notice that it wishes to terminate its Letter of Credit, the borough may, at its discretion draw and call upon the full amount of the guaranty by way of a sight draft executed by the Mayor and Borough Solicitor even if the development is still progressing in accordance with the underlying approval.
At any time prior to 30 days of expiration or termination of the guaranty, the applicant may submit a replacement surety to the borough pursuant to these provisions in a form acceptable to the Borough's Attorney and Engineer to prevent the borough from automatically drawing upon or calling the Letter of Credit for any remaining improvements. All Letters of Credit or sureties which can terminate by means other than by release of the Borough Council shall recite the following provisions: "It is a condition of this Letter of Credit (or other form of guarantee) that it will be deemed to be automatically extended, without amendment, for additional periods of one year from the present or any future expiration date hereof, unless no more than 90 days or less than 60 days prior to the then current expiration date we notify the Borough Clerk in writing, at your address stated above, via certified mail, return receipt requested or express mail of our intention not to so extend this Letter of Credit for any additional periods. Such notice will be deemed to have been given when sent. However, notwithstanding the foregoing, we do reserve the right to cancel this Letter of Credit at any time after the stated expiration date of _____________, provided that we notify you in writing, at your address stated above, via certified or express mail no more than 90 days or not less than 60 days prior to the date of our anticipated cancellation date (such notice will be deemed to have been given when received) or our intention to cancel this Letter of Credit. Upon your receipt of such cancellation notice and within the remaining period in which this credit is valid and in force you may present your drawing demand hereunder by means of your sight draft(s) drawn on ourselves and accompanied by a typewritten statement on the letterhead of and purportedly signed by the Mayor of the Borough of Lawnside and its Borough Engineer stating therein, 'liability still exists to the Borough of Lawnside with respect to Letter of Credit No.____. Therefore, demand for payment thereunder is hereby made for an amount equal to that so stated in our attached sight draft(s)'."