Which type of bond covers infrastructure elements such as streets and sidewalks?

A subdivision bond is specifically designed to cover the costs associated with the development of infrastructure elements within a subdivision, such as streets, sidewalks, and utilities. When developers create new residential areas, they are often required to post this type of bond to ensure that these essential infrastructure projects are completed to meet local standards and regulations.

This bond helps protect the local government or municipality by guaranteeing that the necessary groundwork is finished before the developer can proceed with selling plots or homes. Should the developer fail to complete the work as promised, the municipality can call upon the bond for financial recourse to either complete the work or pay for its completion. This ensures that public property and amenities are built to the required specifications and are safe for public use.

Other types of bonds listed serve different purposes. For instance, a performance bond ensures that contractors fulfill their obligations as outlined in a contract, while a license bond secures compliance with state laws governing specific businesses. An indemnity bond provides protection against losses or damages rather than focusing on the completion of infrastructure projects. Thus, the subdivision bond is the most appropriate choice when discussing infrastructure elements like streets and sidewalks.