Common use of Financial Assurance Requirements Clause in Contracts

Financial Assurance Requirements. Developer, prior to commencing construction of any phase, shall deposit with the Township or a financial institution acceptable to the Township, cash, certified check, or an automatically renewing irrevocable letter of credit, or such other assurance as may be required by the Township, whichever Developer elects, running to the Township, to provide financial assurance (the “Financial Assurance”) for the construction of the System, water and sewer, and roads (referred to as “Public Improvements”) in accordance with Township policy. The Financial Assurance required shall be in the amount of One Hundred Ten (110%) percent of the cost of construction of the Public Improvements, for the particular phase being developed as specified in a contract for construction, which estimate has been approved by the Township’s Engineer. The Financial Assurance shall secure the completion of the Public Improvements. If and to the extent the another governmental entity having jurisdiction requires a bond or other security to secure the completion of any of the Public Improvements, and to avoid imposing on Developer the obligation of bonding twice for the same Public Improvement, the amount of the Financial Assurance required by this Agreement shall be reduced by the amount of the financial assurance required by the other governmental entity. The Township will rebate to Developer as work progresses, and if approved by the Township, amounts of any cash deposits, or reduce the irrevocable letter of credit, as may be applicable, equal to the ratio of the work completed on the Public Improvements in each respective phase of the Project. However, at no time shall the amount retained for any incomplete work total less than 110% of the value of the remaining work, as determined by the Township’s Engineer. Concurrently with approval by the Township of any streets or other Public Improvements, a two (2) year maintenance bond or such other assurance reasonably acceptable to the Township, in the amount of 110% of the total cost of the road running from the date of final approval of the Public Improvements, as established by the Township, or other Financial Assurance, running to the Township equal to 25% of the construction costs for the Public Improvements shall be posted by Developer. Additionally, in accordance with the Township’s Engineering Design Standards, as-built plans certified by a licensed engineer, reviewed by the Township’s engineer, shall be submitted to the Township.

Financial Assurance Requirements. Developer, prior to commencing construction of any phase, shall deposit with the Township or a financial institution acceptable to the Township, cash, certified check, or an automatically renewing irrevocable letter of credit, or such other assurance as may be required by the Township, whichever Developer elects, running to the Township, to provide financial assurance (the “Financial Assurance”) for the construction of the System, water and sewer, and roads (referred to as “Public Improvements”) in accordance with Township policyLand Development and Utility Ordinance. The Financial Assurance required shall be in the amount of One Hundred Ten (110%) percent of the cost of construction of the Public Improvements, for the particular phase being developed as specified in a contract for construction, which estimate has been approved by the Township’s Engineer. The Financial Assurance shall secure the completion of the Public Improvements. If and to the extent the another governmental entity having jurisdiction requires a bond or other security to secure the completion of any of the Public Improvements, and to avoid imposing on Developer the obligation of bonding twice for the same Public Improvement, the amount of the Financial Assurance required by this Agreement shall be reduced by the amount of the financial assurance required by the other governmental entity. The Township will rebate to Developer as work progresses, and if approved by the Township, amounts of any cash deposits, or reduce the irrevocable letter of credit, as may be applicable, equal to the ratio of the work completed on the Public Improvements in each respective phase of the Project. However, at no time shall the amount retained for any incomplete work total less than 110% of the value of the remaining work, as determined by the Township’s Engineer. Concurrently with approval by the Township of any streets or other Public Improvements, a two (2) year maintenance bond or such other assurance reasonably acceptable to the Township, in the amount of 110% of the total cost of the road running from the date of final approval of the Public Improvements, as established by the TownshipTownship Land Development and Utility Ordinance, or other Financial Assurance, running to the Township equal to 25% of the construction costs for the Public Improvements shall be posted by Developer. Additionally, in accordance with the Township’s Engineering Design Standards, as-built plans certified by a licensed engineer, reviewed by the Township’s engineer, shall be submitted to the Township.