§ 40:14B-78 — Acceptance of performance, maintenance guarantee which is irrevocable letter of credit

16. The municipal authority shall, for the purposes of section 11 of P.L.1999, c.11 (C.40:14B-73), accept a performance guarantee or maintenance guarantee which is an irrevocable letter of credit if it: a. Constitutes an unconditional payment obligation of the issuer running solely to the municipal authority for an express initial period of time in the amount determined pursuant to section 11 of P.L.1999, c.11 (C.40:14B-73); b. Is issued by a banking or savings institution authorized to do and doing business in this State; c. Is for a period of time of at least one year; and d. Permits the municipal authority to draw upon the letter of credit if the obligor fails to furnish another letter of credit which complies with the provisions of this section 30 days or more in advance of the expiration date of the letter of credit or such longer period in advance thereof as is stated in the letter of credit. L.1999,c.11,s.16.