[HISTORY: Adopted by the Township Council of the Township
of Vernon 5-28-1992 by Ord. No.
92-7. Amendments noted where applicable.]
Whenever, by virtue of any law, ordinance, or regulation, any
person, firm or corporation is required to post a performance guaranty
with the Township of Vernon or any of its boards or agencies, such
performance guaranty shall comply with the following standards:
A.
The applicant shall submit a form of bond signed by the party to
be bound, setting forth specifically both the improvements to be installed
and the time limitations within which the improvements shall be physically
in place and approved by the Township Engineer (for the failure of
installation of such improvements within the time limits thereof,
the bond shall be in default as to both principal and surety without
notice), and accompanied by a certified check for the amount of the
bond payable to the Township of Vernon to be deposited by the Township
of Vernon at interest in a depository bank, and to be used to satisfy
any default in the terms of the bond.
B.
In lieu of a certified check, the person, firm or corporation to
be bound by the bond may submit a letter of credit issued by a bank
doing business in the State of New Jersey, or surety bond executed
by a surety company authorized by the State of New Jersey to guarantee
the performance bonds for projects undertaken by the State of New
Jersey. The qualification of such surety company to guarantee projects
of the State of New Jersey shall be submitted with the surety bond.
In any event, 10% of such performance guaranty shall be in cash in
the form of a certified check.
C.
Each bond, whether secured by cash or a surety as above set forth,
shall bear thereon the following legend: "I hereby approve the form
of the within bond" and a line thereunder for the signature of the
Township Attorney. No bond shall be adequate and no approvals shall
be based thereon unless the form thereof has been so approved and
the manual signature of the Township Attorney is affixed to the bond.
No municipal approvals requiring a performance guaranty shall be given unless and until the person's guaranty has been filed in the manner set forth in § 434-1 above.
The standards of this chapter shall also apply to the renewal
or extension of any performance guaranty.
