Letters of Credit

Financial Planning and Development Finance is responsible for the safekeeping of letters of credit and cash deposits.

Security Deposits (Letters of Credit & Cash Deposits)

A letter of credit is required under various agreements to guarantee financial or performance obligations to the City.

 

A conforming Letter of Credit will be accepted. To conform a Letter of Credit must meet the following criteria:

 

1) Be issued by any of the following six Canadian Chartered banks set out in Schedule 1 of the Bank Act

  • Bank of Montreal;
  • Bank of Nova Scotia;
  • Canadian Imperial Bank of Commerce;
  • Royal Bank of Canada;
  • TD Canada Trust;
  • National Bank

 

2) The Letter of Credit must:

  • state that it is Irrevocable;
  • be in the City’s standard format;
  • be issued in favour of The Corporation of The City of Vaughan at the address as it appears in the sample format. No department or person’s name can be added;
  • be issued in Canadian funds;
  • describe the purpose for which the Letter of Credit is being provided, legal description of property and Project file number or building permit;
  • include an automatic renewal clause for the expiry date

 

For more information please refer to the Letter of Credit Policy (PDF)

 

Follow the Letter of Credit wording in the sample formats below:

 

Alternatives to a Letter of Credit are certified cheque, bank draft or money order (cash deposit). The City shall hold the cash deposit and process the release or draws in the same manner as a letter of credit. Cash deposits will be non-interest bearing.

 

Release of Security

Municipal Services - Subdivisions

Release and reduction requests are processed upon direction from Development Engineering.

Contact Engineering Department

905-832-2281 extension 3649 or 8670

 

Building Permit Securities - Subdivisions

Contact Building Standards for release requests at 905-832-2281 extension 8206

 

Building Permit Securities – Site Plans and Unit Alterations

 

Prior to the release of the security, the Owner and/or Permit Holder shall have all required Building inspections approved prior to contacting Financial Planning and Development Finance at 905-832-2281 and extension 8377 for letters of credit and extension 8817 for cash securities

 

Site Plans & Site Plan Letters of Undertaking

Upon completion of required works pursuant to your agreement contact Financial Planning and Development Finance at 905-832-2281 and extension 8377 for letters of credit and extension 8817 for cash securities

 

Industrial & Residential (not part of a site plan)

Upon completion of required works pursuant to your agreement contact Financial Planning and Development Finance at 905-832-2281 and extension 8377 for letters of credit and extension 8817 for cash securities

 

Pool Permit Securities​Upon completion of required works pursuant to your agreement contact Financial Planning and Development Finance at 905-832-2281 and extension 8377 for letters of credit and extension 8817 for cash securities
Other

Refer to release conditions in the agreement

 

 

Contact Information

 

Financial Planning and ​Development Finance

Phone: 905-832-2281

 

Letters of Credit – ext. 8377

Cash Securities – ext. 8817

 

Email: development.finance@vaughan.ca