A. Form

A performance guarantee may be in the form of a surety bond, letter of credit, or other form of guarantee that provides equivalent security to a surety bond or letter of credit.

B. Conditions

A performance guarantee shall be conditioned upon the performance of all work necessary to complete the specified improvements and the delivery of all necessary encroachment agreements, with said performance and delivery to be done by a specified completion date as allowed per NCGS § 160D-804.1.

C. Release of Guarantee

The performance guarantee shall be returned or released, as appropriate, in a timely manner upon the acknowledgment by the City or County that the improvements and conditions for which the performance guarantee is being required are complete.

D. Extension

If the improvements are not complete and the current performance guarantee is expiring, the performance guarantee shall be extended, or a new performance guarantee issued, for an additional period limited to the duration necessary to complete required improvements. A developer shall demonstrate reasonable, good faith progress toward completion of the required improvements that are the subject of the performance guarantee or any extension.