Surety Bond Quarterly - Fall 2016 - 19


of the subdivision improvements. For example, the Set Aside
Agreement may also contain provisions requiring the bank, in the
event of its foreclosure on the
property as a result of the developer's default, to require any
third-party purchaser to assume
or take title to the property subject to the developer's subdivision improvement obligations.
These negotiations may also
deal with the bank's obligations
under the Set Aside Agreement
or other financial arrangement to
make available to the surety the
funds to complete the subdivision
improvements.

she practices in the areas of fidelity
and surety law, construction litigation,
and bankruptcy and creditor's rights
out of the firm's offices in New York,
NY, and West Orange and Trenton, NJ.
She can be reached at brotenberg@
csglaw.com or 973.530.2118.
Reference:
In Part 1 of this article, we defined the
"Statutory Scheme" as the body of land
development laws and regulations that have
been enacted by most states, counties, and

local municipalities (Public Agency) to control the design and improvements of subdivision developments to assure consistency
with local public health and environmental
standards, and to coordinate subdivision
planning (lot size, configuration, street patterns and utility easements), as well as overall community planning.
For a more comprehensive discussion of the
issues raised here, see Susan M. Moore, et al.,
Law of Developers or Subdivision Bonds, in
T he L aw of C ommercial Surety and Miscellaneous
Bonds 33 (Bruce C. King, et al. eds., 2d ed. 2012).

Conclusion
Understanding and appreciating the
unique aspects of Subdivision Bonds
is imperative for properly underwriting these bonds and avoiding future
claims. An awareness of the key
provisions of the Statutory Scheme
in play, and consistent monitoring
and open communication among the
surety, the bond producer, the developer-principal, and any bank that has
provided financing to the developer
with respect to the improvements,
are the key components to properly
evaluating any bonding request
and ensuring the completion of the
bonded subdivision improvements
without loss to the surety.
●
Armen Shahinian is a surety, construction and bankruptcy litigator
with the firm of Chiesa Shahinian
& Giantomasi PC, with offices in
New York, NY, and West Orange
and Trenton, NJ. Shahinian is a
Past Chair of the American Bar
Association, TIPS Fidelity & Surety
Law Committee; serves on the NASBP
Attorney Advisory Council; and is a
Member of the Board of Directors
of the Surety Claims Institute and
Editor-in-Chief of its Newsletter.
He can be reached at ashahinian@
csglaw.com or 973.530.2002 (or NY
at 212.973.0572). Beth J. Rotenberg is
an associate with the firm of Chiesa,
Shahinian & Giantomasi PC., where
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Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2016

NASBP Upcoming Meetings & Events
2016-2017 Executive Committee
From the CEO: Success Comes with Sharing Perspective and Knowledge
Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
2016 NASBP Resource Directory
Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover1
Surety Bond Quarterly - Fall 2016 - cover2
Surety Bond Quarterly - Fall 2016 - 3
Surety Bond Quarterly - Fall 2016 - 4
Surety Bond Quarterly - Fall 2016 - 5
Surety Bond Quarterly - Fall 2016 - 6
Surety Bond Quarterly - Fall 2016 - 2016-2017 Executive Committee
Surety Bond Quarterly - Fall 2016 - From the CEO: Success Comes with Sharing Perspective and Knowledge
Surety Bond Quarterly - Fall 2016 - 9
Surety Bond Quarterly - Fall 2016 - Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Surety Bond Quarterly - Fall 2016 - 11
Surety Bond Quarterly - Fall 2016 - 12
Surety Bond Quarterly - Fall 2016 - 13
Surety Bond Quarterly - Fall 2016 - Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Surety Bond Quarterly - Fall 2016 - 15
Surety Bond Quarterly - Fall 2016 - 16
Surety Bond Quarterly - Fall 2016 - Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Surety Bond Quarterly - Fall 2016 - 18
Surety Bond Quarterly - Fall 2016 - 19
Surety Bond Quarterly - Fall 2016 - Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Bond Quarterly - Fall 2016 - 21
Surety Bond Quarterly - Fall 2016 - 22
Surety Bond Quarterly - Fall 2016 - 23
Surety Bond Quarterly - Fall 2016 - Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
Surety Bond Quarterly - Fall 2016 - 25
Surety Bond Quarterly - Fall 2016 - 26
Surety Bond Quarterly - Fall 2016 - 2016 NASBP Resource Directory
Surety Bond Quarterly - Fall 2016 - 28
Surety Bond Quarterly - Fall 2016 - 29
Surety Bond Quarterly - Fall 2016 - 30
Surety Bond Quarterly - Fall 2016 - 31
Surety Bond Quarterly - Fall 2016 - 32
Surety Bond Quarterly - Fall 2016 - 33
Surety Bond Quarterly - Fall 2016 - 34
Surety Bond Quarterly - Fall 2016 - 35
Surety Bond Quarterly - Fall 2016 - 36
Surety Bond Quarterly - Fall 2016 - 37
Surety Bond Quarterly - Fall 2016 - 38
Surety Bond Quarterly - Fall 2016 - 39
Surety Bond Quarterly - Fall 2016 - 40
Surety Bond Quarterly - Fall 2016 - 41
Surety Bond Quarterly - Fall 2016 - Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover3
Surety Bond Quarterly - Fall 2016 - cover4
Surety Bond Quarterly - Fall 2016 - outsert1
Surety Bond Quarterly - Fall 2016 - outsert2
Surety Bond Quarterly - Fall 2016 - outsert3
Surety Bond Quarterly - Fall 2016 - outsert4
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