Under current law, GS 153A-331(c) (counties) and GS 160A-372(c) (cities), a local government may adopt a subdivision control ordinance and require developers to provide performance guarantees. If the ordinance requires a performance guarantee, the local government must provide a range of options for the guarantee and the developer has the option of choosing the type of guarantee to provide. Amendments to those two sections provide that if the local government’s range of performance guarantee options includes a letter of credit, the developer may choose to obtain a surety bond in lieu of the letter of credit. Provides that while the local government is authorized to establish reasonable requirements governing the surety, certain sureties (those listed annually as acceptable on federal bonds) are deemed acceptable. Applies to any range of performance guarantee options specified by a local government on or after the date when this act becomes law.
Bill Summaries: H827 REQUIRE SURETY OPTIONS FOR DEVELOPERS.
Bill H 827 (2011-2012)Summary date: Apr 8 2011 - View Summary