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Home > Services > Business Services > Letters of Credit
Letters of Credit
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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
 
For more information please refer to the Letter of Credit Policy (PDF)
Follow the Letter of Credit wording in the sample formats below:  

   Standard Letter of Credit 

   Lottery Licence 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 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 905-832-8585 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 905-832-8585 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 905-832-8585 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 ext 8377  
 
Email: development.finance@vaughan.ca
 
 
Location:
 
Vaughan City Hall, Level 300
2141 Major Mackenzie Dr.
Vaughan, ON  L6A 1T1
 
 
 

 Related Links

 
  • Financial Planning and Development Finance
    Home Page
 

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