a. Provisions shall be made by the applicant for a maintenance guarantee to be posted with the Governing Body for a period not to exceed two (2) years after final acceptance of the improvements in an amount not to exceed fifteen (15%) percent of the cost of the improvements, which cost shall be determined by the Township Engineer according to the method of calculation set forth in subsection 19-4 1002 In the event that other governmental agencies or public utilities automatically will own the utilities to be installed or the improvements are covered by a performance or maintenance guarantee to another governmental agency, no performance or maintenance guarantee, as the case may be, shall be required by the municipality for such utilities or improvements The Township Engineer and the Planning Board shall review the maintenance bond, it shall be reviewed by the Township Attorney as to form sufficiency and execution and approved by the Governing Body

b. The Governing Body shall, for the purpose of this Section, accept a maintenance guarantee which is an irrevocable letter of credit, if it

1. Constitutes 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 Section 19-4 11a,

2. Is issued by a financially stable banking or savings institution authorized to do and doing business in this State,

3. Is for a period of time of at least one (1) year, and

4. Permits the Township to draw upon the letter of credit if the obligor fails to furnish another letter of credit which complies with the provisions of this Section thirty (30) days or more in advance of the expiration date of the letter of credit or such longer period in advance thereof as stated in the letter of credit

The applicant may, at his option, provide some or all of the maintenance guarantee in cash (Ord #2-77, 19-4 11, Ord #16-92, 1)