§ 1005 BONDING AND CASH REQUIREMENTS
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A. The performance guarantee shall be the approved performance guarantee estimate and as surety a performance bond in which the applicant shall be principal, the bond to be provided by an acceptable surety company licensed to do business in the State of New Jersey, an irrevocable letter of credit drawn on a banking or savings and loan institution located in and licensed to do business in the State of New Jersey or such other form of security as may be approved by the Township Attorney, or cash, or a certified check shall be deposited with the Township of Neptune by payment to the Township Treasurer. The performance guarantee in favor of the Township shall be in an amount not to exceed 120% of the cost of the installation and improvements. The Township Treasurer shall issue its receipt for such cash deposits and shall cause the same to be deposited in a bank named by the Township for this purpose to be retained as security for completion of all requirements and to be returned to the developer on completion of all required work and expiration of the period of maintenance guarantee or, in the event of default on the part of the subdivider, to be used by the Township of Neptune to pay the cost and expense of obtaining completion of all requirements. Every bond, whether cash or surety, shall contain a clause to the effect that the obligation shall remain in fun force and effect until such time as certification is received from the Municipal Engineer that the principal has met and complied with all specifications and requirements for which said cash or surety bond has been posted.
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B. Ten (10) percent of the amount of the approved performance guarantee estimates shall be deposited with the Township by the applicant in cash. The remaining ninety (90) percent may be in cash, surety bond or other securities or guaranties approved by the Township Attorney. In the event of default, the ten-percent fund herein mentioned shall be first applied to the completion of the requirements and the cash or the surety shall thereafter be resorted to, if necessary, for the completion of the requirements. The cash or surety may recite the foregoing provisions. The Municipal Engineer's determination that the principal has defaulted in Ms obligation shall be binding and conclusive upon the principal.
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C. Irrevocable letters of credit shall include, but not be limited to, the following provisions:
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1. An unconditional payment obligation of the issuer running solely to the Township for an express initial period of time in the amount determined pursuant to N.J.S.A. 40:55D-53 and Section 1003-B Determination of Performance Guarantee Estimate.
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2. Is for a period of time of at least two (2) years; and
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3.Permits the Township to draw upon the letter of credit if the developer fails to furnish another letter of credit which complies with the provisions of this subsection thirty (30) days or more in advance of the expiration date of the letter of credit or such longer period in advance thereof as is stated in the letter of credit. | |||||||