---
title: Duluth UDC § 1130.06 — Duluth
jurisdiction: duluth
governing_jurisdiction: Duluth
source_url: "https://www.duluthga.net/UDC_ADOPTED_9.8.2025_Amended_7-13-26.pdf"
effective_date: "2026-07-13"
as_of: "2026-08-13"
canonical: "https://www.gwindex.net/code/duluth/1130.06"
licence: "CC0-1.0"
---

# Duluth UDC § 1130.06

Types of Acceptable Performance Guarantees

**Governing jurisdiction: Duluth.** A "Duluth, GA" mailing address is usually NOT in the City of Duluth. Unincorporated Gwinnett is 67.3% of the county's land area and is governed by a different code, a different board and a different permit portal. Resolve the governing jurisdiction before answering any zoning question.


- **Article:** 11 — Procedures and Permits
- **Pages in source:** 343–344
- **Adopted:** 2025-09-08
- **Amended through:** 2026-07-13
- **Source:** https://www.duluthga.net/UDC_ADOPTED_9.8.2025_Amended_7-13-26.pdf

## Text

1. Letter of Credit. The developer shall provide a valid irrevocable letter of credit from a bank or other
reputable financial institution chartered to do business in the State of Georgia, for approval by the
Planning Director. The letter of credit shall be in a form acceptable to the City (see Section 1131 for an
example). The letter of credit shall certify the following:

a. That the issuer guarantees funds in an amount equal to 110% of the cost, as established under

Section 1130.02, of completing all required improvements.
b. That the issuer guarantees that any liens or encumbrances that exist or may be placed on the

improvements will not become the responsibility of the City under any circumstances.
c.
That if the developer fails to satisfactorily complete the specified improvements within the
required period or is otherwise in default under Section 1130.04, upon written demand of the
Planning Director, the issuer will pay to the City immediately, and without further action, the full
amount of the total assignment stated in the letter of credit, less the actual cost of covered
improvements expended as of the date of demand. Such expenditures shall be evidenced by
invoices and proof of payments and shall be subject to review and acceptance by the City as to
reasonableness.
d. That the letter of credit shall not be terminated less than 60 calendar days after the date of

performance completion as contained in the pertinent Development Performance and
Maintenance Agreement, may not be withdrawn or reduced in amount, and will be automatically
renewed on a month-to-month basis until released in writing by the Planning and Development
Director.
2. Performance or Surety Bond. If a developer prefers not to post an irrevocable letter of credit, the Planning
Director may allow the developer to post a performance bond as follows:

a. A performance bond must be provided by a construction bonding or insurance company

authorized to do business in the State of Georgia.
b. The letter of credit shall be in a form acceptable to the City (see Section 1131 for an example).
c.
A performance bond shall certify the following:

342 | P a g e

Article Eleven. Procedures and Permits

i. That the bonding or insurance company guarantees funds in an amount equal to 110%

of the cost, as established under Section 1130.02, of completing all required
improvements.
ii. That the bonding or insurance company guarantees that any liens or encumbrances that

exist or may be placed on the improvements will not become the responsibility of the
City under any circumstances.
iii. That if the developer fails to complete the specified improvements within the required

period or is otherwise in default under Section 1130.04, upon written demand of the
Planning Director, the bonding or insurance company will pay to the City immediately,
and without further action, the full amount of the limit of insurance stated in the bond,
less the actual cost of covered improvements expended as of the date of demand. Such
expenditures shall be evidenced by invoices and proof of payments and shall be subject
to review and acceptance by the City as to reasonableness.
d. That the bond shall not be terminated less than 60 calendar days after the date of performance

completion as contained in the pertinent Development Performance and Maintenance
Agreement, may not be withdrawn or reduced in amount, and will be automatically renewed on
a month-to-month basis until released in writing by the Planning and Development Director.