                                 CODE OF VIRGINIA

PROVISIONS FOR PERIODIC PARTIAL AND FINAL RELEASE OF CERTAIN PERFORMANCE
GUARANTEES (§ 15.2-2245)

A. A subdivision ordinance shall provide for the periodic partial and final
complete release of any bond, escrow, letter of credit, or other performance
guarantee required by the governing body under this article within thirty days
after receipt of written notice by the subdivider or developer of completion of
part or all of any public facilities required to be constructed hereunder unless
the designated agent notifies the subdivider or developer in writing of
nonreceipt of approval by an applicable state agency, or of any specified
defects or deficiencies in construction and suggested corrective measures prior
to the expiration of the thirty-day period. Any inspection of such public
facilities shall be based solely upon conformance with the terms and conditions
of the performance agreement and the approved design plan and specifications for
the facilities for which the performance guarantee is applicable, and shall not
include the approval of any person other than an employee of the governing body,
its administrative agency, the Virginia Department of Transportation or other
political subdivision or a person who has contracted with the governing body,
its administrative agency, the Virginia Department of Transportation or other
political subdivision.

B. If no such action is taken by the designated agent within the time specified
above, the request shall be deemed approved, and a partial release granted to
the subdivider or developer. No final release shall be granted until after
expiration of such thirty-day period and there is an additional request in
writing sent by certified mail return receipt to the chief administrative
officer of such governing body. The designated agent shall act within ten
working days of receipt of the request; then if no action is taken the request
shall be deemed approved and final release granted to the subdivider or
developer.

C. After receipt of the written notices required above, if the governing body or
administrative agency takes no action within the times specified above and the
subdivider or developer files suit in the local circuit court to obtain partial
or final release of a bond, escrow, letter of credit, or other performance
guarantee, as the case may be, the circuit court, upon finding the governing
body or its administrative agency was without good cause in failing to act,
shall award such subdivider or developer his reasonable costs and
attorneys&#8217; fees.

D. No designated agent shall refuse to make a periodic partial or final release
of a bond, escrow, letter of credit, or other performance guarantee for any
reason not directly related to the specified defects or deficiencies in
construction of the public facilities covered by said bond, escrow, letter of
credit or other performance guarantee.

E. Upon written request by the subdivider or developer, the designated agent
shall be required to make periodic partial releases of such bond, escrow, letter
of credit, or other performance guarantee in a cumulative amount equal to no
less than ninety percent of the original amount for which the bond, escrow,
letter of credit, or other performance guarantee was taken, and may make partial
releases to such lower amounts as may be authorized by the designated agent
based upon the percentage of public facilities completed and approved by the
governing body, local administrative agency, or state agency having
jurisdiction. Periodic partial releases may not occur before the completion of
at least thirty percent of the public facilities covered by any bond, escrow,
letter of credit, or other performance guarantee. The designated agent shall not
be required to execute more than three periodic partial releases in any
twelve-month period. Upon final completion and acceptance of the public
facilities, the designated agent shall release any remaining bond, escrow,
letter of credit, or other performance guarantee to the subdivider or developer.
For the purpose of final release, the term &#8220;acceptance&#8221; means: when
the public facility is accepted by and taken over for operation and maintenance
by the state agency, local government department or agency, or other public
authority which is responsible for maintaining and operating such public
facility upon acceptance.

F. For the purposes of this section, a certificate of partial or final
completion of such public facilities from either a duly licensed professional
engineer or land surveyor, as defined in and limited to &#xA7; 54.1-400, or from
a department or agency designated by the locality may be accepted without
requiring further inspection of such public facilities.

HISTORY: Code 1950, §§ 15-781, 15-967.1; 1950, p. 183; 1962, c. 407, §
15.1-466; 1970, c. 436; 1973, cc. 169, 480; 1975, c. 641; 1976, c. 270; 1978,
cc. 429, 439, 440; 1979, cc. 183, 188, 395; 1980, cc. 379, 381; 1981, c. 348;
1983, cc. 167, 609; 1984, c. 111; 1985, cc. 422, 455; 1986, c. 54; 1987, c. 717;
1988, cc. 279, 735; 1989, cc. 332, 393, 403, 495; 1990, cc. 170, 176, 287, 708,
973; 1991, cc. 30, 47, 288, 538; 1992, c. 380; 1993, cc. 836, 846, 864; 1994, c.
421; 1995, cc. 386, 388, 389, 452, 457, 474; 1996, cc. 77, 325, 452, 456; 1997,
c.; 2002, c. 779; 2025, c. 594.