bond under the Insurance Act

Good morning,
Have any of you ever accepted a bond under the Insurance Act for DCC instalment payment?
What kind of wording has been used to ensure that in case of default the municipality is able to recover the money from the developer?

Our bylaw states the following:

"a developer electing to pay a charge by installments must deposit with the City at the same time as the payment of the first installment:
I. an irrevocable letter of credit or undertaking from a bank, credit union or trust company registered under the Financial Institutions Act;
II. a bond or surety licensed under the Insurance Act; or
III. a security duly assigned
which ensures to the satisfaction of the City that upon default the balance of the unpaid charge will be recoverable from the person, the bank, the surety or from the proceeds of the realization of the security, as the case may be."

Please advise.
Thank you in advance.
Renata Wyka, Manager of Finance with the City of Courtenay

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