109-22 Developers Construction Agreement.pdf

1152-121 224456-3 7 forth on Exhibit B, as determined by the Township, on the recommendation of the Township Engineer (collectively, the “Performance Guarantee”). The Performance Guarantee will consist of (i) a letter of credit or surety bond, in form and substance acceptable to the Township, as hereinafter provided, and (ii) a cash escrow held by the Township. The Performance Guarantee may be used by the Township to complete certain site improvements required by the Approval, as determined by the Township Engineer and specified on Exhibit B (collectively, the “Bonded Improvements”), in the event said Bonded Improvements are not accomplished by the Developer within the time as provided in the Approval or otherwise in this Agreement, and to compensate the Township for any repairs for damage caused by the Developer or the Developer’s agents, employees, representatives, contractors, or vendors (collectively, the “Developer’s Agents”) to public facilities resulting from construction of the Project. The Performance Guarantee will be reduced in accordance with the MLUL as the Bonded Improvements are completed, inspected and approved by the Township. 3. Performance Guarantee – Requirements for Letters of Credit, Surety Bonds and Cash Escrows. Any performance guarantee posted under this Agreement or in connection with the Project, whether in the form of a performance bond, letter of credit or other arrangement, shall be subject to the review and approval of the Township as to form and amount, through the Township Engineer and Township Attorney, and otherwise meet the requirements of the MLUL and other applicable law. Any performance bond shall be duly executed by the Developer as principal, and the surety company as surety, and shall be issued by an insurance company authorized to do business in the State of New Jersey. Any letter of credit shall provide for automatic extensions thereof, at the discretion of the Township, for a period of time reasonably required to complete the Bonded Improvements or to complete any other work secured by the