Security for completion of improvements.
A. When financial security is required for completion of any improvement provided for by this chapter, such security shall comply with the requirements stated in this section.
B. Performance bond.
(1) The bond shall inure to the benefit of the Township and shall cover the construction, operation and maintenance of the improvement.
(2) The bond shall be in an amount equal to the total estimated cost for completing construction of the improvement, including contingencies, as estimated by the Planning Commission and the Township Engineer.
(3) The Planning Commission or other Township body having jurisdiction in the matter shall specify the term during which the bond shall remain in force.
(4) The bond shall be guaranteed by a surety company authorized to do business in the State of Michigan and acceptable to the Township.
C. Cash deposit, certified check or irrevocable bank letter of credit.
(1) A cash deposit, certified check or an irrevocable bank letter of credit, acceptable to the Township, shall be submitted to the Township, to the attention of the Zoning Administrator.
(2) In the case of an irrevocable bank letter of credit, the terms thereof and the depository bank shall be subject to the approval of the Township.
(3) The dollar value of a cash deposit, certified check or an irrevocable bank letter of credit shall be equal to the total estimated cost of construction of the improvement, including contingencies, as estimated by the Township Engineer.
(4) The period of effectiveness for the cash deposit, certified check or irrevocable bank letter of credit shall be as specified by the Township.
D. Such security shall be used by the Township for the purpose of completing improvements if an applicant or a developer fails to do so, including, but not limited to, payment of engineering, legal, and other professional services, as well as completion of applicable improvements; provided, however, that the Township shall not be obliged to complete any such improvements.
E. Upon certification by the Zoning Administrator that all improvements have been fully completed, the Zoning Administrator shall authorize the return or termination of all security that has been provided. As improvements are completed, the Zoning Administrator may authorize reductions in the amount of security, but security may be retained in an amount not exceeding the estimated cost of all remaining improvements.
F. If a required performance bond or irrevocable letter of credit has expired or is terminated prior to completion of all construction or other work for which such security has been given, then all such construction and other work shall be stopped until an appropriate security satisfactory to the Township has been submitted and accepted.
