Security Deposits (Letters of Credit & Cash Deposits)

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

a)    Bank of Montreal;

b)    Bank of Nova Scotia;

c)    Canadian Imperial Bank of Commerce;

d)    Royal Bank of Canada;

e)    TD Canada Trust;

f)     National Bank

 

2)    The Letter of Credit must:

a)    state that it is Irrevocable;

b)    be in the City’s standard format;

c)    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;

d)    be issued in Canadian funds;

e)    describe the purpose for which the Letter of Credit is being provided, legal description of property and Project file number or building permit;

f)     include an automatic renewal clause for the expiry date

 

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

   Subdivision Agreement 

   Site Plan Agreement

   Site Plan Letter of Undertaking   

   Building Permit Security

   Standard Letter of Credit 

   

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 905-832-8585 extension 8364
Building Permit Securities - Subdivisions	Contact Building Standards for release requests at 905-832-8585  extension 8232
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 905-832-8585 extension 8377
Site Plans & Site Plan Letters of Undertaking	Upon completion of required works pursuant to your agreement contact Development Finance & Investments at 905-832-8585 extension 8377
Industrial & Residential (not part of a site plan) & Pools	Upon completion of required works pursuant to your agreement contact Financial Planning and Development Finance at 905-832-8585 extension 8377
Other	Refer to release conditions in the agreement