[Ord. 137, 7/5/2005]
[Ord. 137, 7/5/2005]
The following requirements shall apply to any surety bond provided
to the Township under the requirements of this Code:
A.
The bond shall be obtained from a surety incorporated in the United
States and authorized to do business in the Commonwealth of Pennsylvania.
B.
The surety shall have a current A.M. Best's rating of no less
than "A" and an underwriting capacity as stated in Best's equal
to or greater than the amount of the bond written by that surety or,
in the alternative, be listed on the current United States Department
of the Treasury's annual list of "Companies Holding Certificates
of Authority as Acceptable Sureties on Federal Bonds and as Acceptable
Reinsuring Companies" as published in the Federal Register and have
an underwriting capacity in said list equal to or greater than the
amount of the bond written by that surety.
[Ord. 137, 7/5/2005]
The following requirements shall apply to any letter of credit
provided to the Township under the requirements of this Code:
A.
The letter of credit shall be issued by a Federal or Commonwealth
chartered lending institution having an office located within 30 miles
of the boundaries of Frazer Township at which a draft on site can
be presented during regular business hours.
B.
The letter of credit shall have an expiration date of no earlier
than 90 days after the required completion date of any improvements
or other secured work, function, permit or matter. The Township, at
its discretion, may accept a letter of credit having an earlier expiration
date, provided the letter of credit states that it will automatically
be renewed for a period of at least one year from any present or future
expiration date unless the Township receives notice in writing from
the issuer at least 60 days prior to the expiration date that the
issuer elects to not further extend the letter of credit, and that
if such notices are given the Township may draw on the letter of credit
up to the amount of its unused balance on or before the relevant expiration
date.
C.
Multiple draws on the letter of credit shall be permitted.
D.
Draws shall be permitted at sight at the issuer's office in
a location as set forth in paragraph .A, or by overnight mail.
