A. The following requirements shall apply to any surety bond posted as security in accordance with this Chapter:
1. The bond shall be obtained from surety incorporated in the United States and authorized to do business in Commonwealth of Pennsylvania.
2. 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 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.
B. The following requirements shall apply to any letter of credit posted as security in accordance with this Chapter:
1. The letter of credit shall be issued by a Federal or Commonwealth chartered lending institution having an office located within thirty (30) miles of the boundaries of the Township at which a draft on site can be presented during regular business hours.
2. The letter of credit shall have an expiration date of no earlier than ninety (90) days after the required completion date of any improvements in the case of performance security and no earlier than eighteen (18) months from the date of acceptance of any improvements to be dedicated to the TOWNSHIP or other public entity in the case of maintenance security. The TOWNSHIP, at its discretion, may accept a letter of credit having an earlier expiration date, provided the letter of credit states it will automatically be renewed for a period of at least one (1) year from any present or future expiration date unless the TOWNSHIP receives notice in writing from the issuer at least sixty (60) days prior to the expiration date that the issuer elects to not further extend the letter of credit and that if such notice is 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.
3. Multiple draws on the letter of credit shall be permitted.
4. Draws shall be permitted at sight at the issuer’s office in a location as set forth in subparagraph (i), and by overnight mail.
C. All financial security tendered by an APPLICANT pursuant to this Chapter shall be subject to review and approval by the TOWNSHIP’S Solicitor with respect to the form, source and sufficiency of the same.
