§ 706. Maintenance bond.

(a)

Upon completion of construction and prior to the issuance of any certificate of occupancy for any project which a performance bond or other acceptable security has been posted in accordance with section 703.03 of this article, the developer shall provide, on a form acceptable by the city, a maintenance bond, escrow account, certified check, or irrevocable letter of credit from a bank which has a business office within the State of Georgia, in the amount of 50 percent of the total cost of all infrastructure improvements and maintenance and landscape requirements.

(b)

If a bond is offered, it shall be executed by a surety or guaranty company qualified to transact business in the State of Georgia and acceptable to the city. In no event shall the depositor of the irrevocable letter of credit or bond have any significant interest in the bank upon which such irrevocable letter of credit has been authorized or in the surety or guaranty company issuing the bond. Significant interest of the depositor means acting as an officer or director or owning more than one (percent of the stock of such bank, surety or guaranty company.)

(c)

Measured from the initial date the required security is approved by the city, if no faults or failures develop within 12 months, the city may reduce the required security amount by 50 percent. At the end of the second 12 months, the developer shall request an inspection, and if no faults or failures have developed, the city may release the bond or escrow upon approval by the aldermanic board.

(d)

The bond or escrow shall remain in force until released by the aldermanic board and shall not automatically expire at the end of 12 months. Bond and escrow forms are available from the office of the city clerk.

( Ord. of 6-5-2017(2), § II )