Subdivision bonding through a private bonding company instead of letters of credit
Does any other municipalities accepts a subdivision bond through a private bonding company (i.e. Jardine Lloyd Insurance company in Victoria BC) for subdivision security instead of the usual letter of credits provided by the banks? If so, is this secure and risk free or is there a risk that we would not get paid for damages if needed? I'm used to letter of credits on account where if we don't get paid by the developer, we can just cash in the letter of credit and we get paid by the bank. This is new to me. Any help would be greatly appreciated, thanks.