Common use of Surety Release Clause in Contracts

Surety Release. A. Periodically, as payments are made by the Developer for the completion of portions of the Municipal Improvements and/or on- and off-site Improvements, and/or landscaping improvements, and when it is reasonably prudent, the Developer may request of the Town that the surety be proportionately reduced for that portion of the Municipal Improvements and on- and off-site improvements and landscaping improvements which have been fully completed and payment made therefor. All such decisions shall be at the discretion of the Town Board. The Town's cost for processing reduction request(s) shall be billed to the Developer. Such cost shall be paid to the Town within thirty (30) days of the date of mailing of the billing. B. The Developer may request of the Town a reduction or release of any surety as follows: i. When another acceptable letter of credit or surety is furnished to the Town to replace a prior letter of credit or surety. ii. When all or a portion of the Municipal Improvements or the on- and off-site improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of improvements so installed, except that the Town shall retain the letter of credit or surety in the amount of 10% of the estimated construction price of the Municipal Improvements during the first year of the warranty period and 5% of the estimated construction price of the Municipal Improvements during the second year of the warranty period. Developer may substitute a warranty bond acceptable to the Town Attorney for the warranty letter of credit in the same amounts and duration as required for the warranty letter of credit. iii. When all or a portion of the landscaping improvements have been installed pursuant to the Landscaping Plat attached as Exhibit C, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of such landscaping improvements installed, except the Town shall retain the letter of credit or surety in the amount of 25% of the estimated Landscaping Improvement costs for two years from the time of the installation of said landscaping materials.