NC S313

Developers may choose the type of performance guarantee (surety bond, letter of credit, or equivalent security) required by cities and counties for subdivision improvements.

Initial performance guarantee duration is one year unless the developer determines longer duration is necessary based on scope of work; extensions only cover time needed to complete remaining improvements.

Performance guarantee amount cannot exceed 125% of reasonably estimated completion costs, with the additional 25% covering inflation and administrative costs.

Cities and counties must timely return or release performance guarantees upon completion of improvements and provide written acknowledgement when bond-secured improvements are completed.

Developers may post a single performance guarantee for all development matters in the same project instead of multiple separate bonds or letters of credit.