Bill Text: NJ S2539 | 2012-2013 | Regular Session | Introduced
Bill Title: Authorizes release or reduction of original performance guarantee after deposit of adequate replacement performance guarantee by successor developer.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2013-08-09 - Approved P.L.2013, c.123. [S2539 Detail]
Download: New_Jersey-2012-S2539-Introduced.html
Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Authorizes release or reduction of original performance guarantee after deposit of adequate replacement performance guarantee by successor developer.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the release of performance guarantees under the "Municipal Land Use Law" and supplementing P.L.1975, c.291.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An approving authority may accept a performance guarantee in favor of the municipality from a successor developer as a replacement for a performance guarantee that was previously furnished, pursuant to section 41 of P.L.1975, c.291 (C.40:55D-53), for the purpose of assuring the installation of improvements. The approving authority shall not accept a replacement performance guarantee without securing:
(1) written confirmation from the new obligor that the intent of the new obligor is to furnish a replacement performance guarantee, relieving the predecessor obligor and surety, if any, of any obligation to install improvements, and
(2) written verification from the municipal engineer that the replacement performance guarantee is of an amount sufficient to cover the cost of the installation of improvements, but not to exceed 120% of the cost of the installation, which verification shall be determined consistent with section 41 of P.L.1975, c.291 (C.40:55D-53).
b. An approving authority shall notify the governing body whenever it accepts a replacement performance guarantee. Notice shall contain a copy of the written confirmation of the new obligor's intent to furnish a replacement performance guarantee and the municipal engineer's written verification of the sufficiency of the amount of that replacement performance guarantee.
c. Within 30 days after receiving notice from the approving authority of its acceptance of a replacement performance guarantee, the governing body, by resolution, shall release the predecessor obligor from liability pursuant to its performance guarantee.
2. This act shall take effect immediately.
STATEMENT
This bill would specifically authorize a planning board or zoning board of adjustment to accept a replacement performance guarantee from a successor developer and require a governing body to release a prior obligor from liability under its performance guarantee within 30 days of receiving notice that its planning board or zoning board of adjustment has accepted a replacement performance guarantee.
The bill provides that before accepting a replacement performance guarantee, a board must secure: written confirmation from the new obligor of its intent to furnish a replacement performance guarantee, relieving the previous obligor and surety, if any, of any obligation to install improvements, and written verification from the municipal engineer that the replacement performance guarantee is of a sufficient amount to cover the cost of the installation of improvements.
