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 Infrastructure Improvements but no more than once per month, the Developer may request of the County and Township that the surety be proportionately reduced for that portion of the Infrastructure Improvements and other requirements under this Agreement which have been fully completed and payment made, therefore. B. The Developer may request of the County and/or Township, as applicable, a reduction or release of any surety as follows: 1. When another acceptable letter of credit or surety is furnished to the County and Township to replace a prior letter of credit or surety. 2. When all or a portion of the applicable Infrastructure Improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of applicable Infrastructure Improvements so installed at such time as a licensed professional engineer, retained by the respective party requiring the improvement, has certified to the County and/or the Township that the construction/installation of the applicable Infrastructure Improvement(s) has been done and performed according to Approved Plans. However, the County and Township, at a minimum, shall retain their letter of credit or surety in the amount of at least 10% of the estimated construction cost of the Infrastructure Improvements and landscaping costs during the two-year warranty period. 3. As to all requests brought under this paragraph B, the County and Township shall have discretion whether to reduce or not to reduce said letter of credit or surety; however, such approval for a reduction shall not be unreasonably withheld, conditioned or delayed. If the request is rejected the County and/or Township, as applicable, shall provide the Developer a written response with twenty (20) days stating with specificity the reasons for such rejection. C. The costs incurred by the County and/or Township in processing any reduction request shall be billed to the Developer and paid to the County and/or Township within thirty (30) days of billing.

Surety Release. A. Periodically, as payments are made by the Developer for the completion of portions of the Infrastructure Improvements but no more than once per monthand when it is reasonably prudent, the Developer may request of the County and Township that the surety be proportionately reduced for that portion of the Infrastructure Improvements and other requirements under this Agreement which have been fully completed and payment made, made therefore. All such decisions shall be at the discretion of the County and Township. B. The Developer may request of the County and/or Township, as applicable, and Township a reduction or release of any surety as follows: 1. When another acceptable letter of credit or surety is furnished to the County and Township to replace a prior letter of credit or surety. 2. When all or a portion of the applicable Infrastructure Improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of applicable Infrastructure Improvements so installed at such time as a licensed professional engineer, retained by the respective party requiring the improvementDeveloper, has certified to the County and/or or the Township Township, as the case may be, that the construction/installation of the applicable Infrastructure Improvement(s) has been done and performed according to Approved Plans. However, not withstanding any approved release of any portion of the letters of credit, Developer is advised that the County and Township will each retain within their respective letters of credit or surety an amount deemed appropriate in their sole discretion during the two year warranty period. However, the Township, at a minimum, shall retain their letter of credit or surety in the amount of at least 10% of the estimated construction cost of the Infrastructure Improvements and landscaping costs during the two-two year warranty period. 3. As to all requests brought under this paragraph B, the County and Township shall have complete discretion whether to reduce or not to reduce said letter of credit or surety; however, such approval for a reduction shall not be unreasonably withheld, conditioned or delayed. If the request is rejected the County and/or Township, as applicable, shall provide the Developer a written response with twenty (20) days stating with specificity the reasons for such rejection. C. The costs incurred by the County and/or Township in processing any reduction request shall be billed to the Developer and paid to the County and/or Township within thirty (30) days of billing.