Bond amounts are set based on the cost estimate submitted by the applicant for grading, stormwater management, storm drainage, road construction, road entrance, water and/or sewer, reforestation, landscape and recreation amenities.
Applicants will receive a Bonding Requirement Notification form. This form will detail the bond amounts, what types of collateral may be used, and other documentation required to prepare the bond and/or development agreement.
Bonding Methods
Bonding of the Total Project: Applicants post a bond for all aspects of the construction permit, which may include grading, road construction, road entrance, water/sewer construction, stormwater management, storm drainage, recreation and reforestation. The plat is approved after bond documents are approved by the County Commissioners.
Partial Bonding and Completion of Improvements: Applicants post a bond for grading, recreation, stormwater management and storm drainage. Road construction and water/sewer construction must be completed, inspected, and accepted by the County before the plat will be approved.
Types of Collateral
Bank Letter of Credit: The expiration date for the letter of credit must be two years from the date of issuance. A sample format is forwarded to the applicant on the reverse side of the Bonding Requirement Form. The Letter of Credit must be issued by a bank with the central location in the Baltimore/Washington Metropolitan Region and the financial institution must be Federally insured. A Veribanc Credit Rating must be submitted with the Letter of Credit.
Surety Company: A letter from the insurance company stating the name of the surety and the agent's name are to be submitted by the Applicant. A sample format is forwarded to the applicant along with the Bonding Requirement Form. Documentation showing the Surety is authorized to do business in the State of Maryland must be submitted with the insurance company letter.
Cash Escrow: The applicant may submit a check (personal, cashier's or certified) made payable to the Charles County Commissioners. The applicant must also complete a Request for Taxpayer Identification Number and Certification W-9 form. An Escrow Agreement will be prepared by staff and the funds will be placed in an interest-bearing escrow account by the County Treasurer.
Documentation
If the project involves road construction and/or water and/or sewer lines and in some cases, stormwater management, a development agreement will be prepared. For use as exhibits to the development agreement, the applicant needs to submit:
- Plat: If required a copy of the proposed plat must be submitted. This will be used as Exhibit A to the Development Agreement. The copy of the plat can be no larger than 8-1/2” x 14”. The property covered by the bond must be 'outlined in red and the plat titled exhibit A. The plat must show the owner's dedication. The owner's name on the plat must be exactly the same as the owner's name on the collateral.
- If the applicant has recently purchased the property and plats have not been prepared showing the applicant's name as owner, a copy of the existing recorded plat, along with a copy of the deed showing the applicant's name as owner may be submitted.
- If the applicant is not the owner of the property, such as a restaurant or business, a paragraph stating that the owner assent to the undertakings of the applicant will be added to the bond and and development agreement. The owner of the property will be required to sign the bond and development agreement.
- Approved Construction Plans: The applicant must ensure the required number of sets of approved construction plans have been submitted. Approved construction plans are used as Exhibit B for the Development Agreement.
The collateral, all necessary documentation, the copy of the proposed plat (if required), and approved construction plans must be submitted as one package. Incomplete bonding packages will not be accepted and will be returned to the applicant.
