Securities: Letter of Credits & Surety Bonds
Find information on Letter of Credits and Surety Bonds for development projects.
Letter of Credits
A Letter of Credit (LOC) is a binding financial contract obtained by a developer through a financial institution and provided to the City as a form of security for required deposits or instalment payments. The LOC guarantees that the City of Surrey will receive payment directly from the financial institution if a developer does not fulfill their obligations.
How to submit a LOC:
1) Download and review the instructions
Download and review the Letter of Credit Information Package for detailed information on how to complete the LOC template. Review the sample templates provided to ensure you understand the required format and information needed.
2) Download and complete the template
Use these templates:
Financial institutions should complete the required information on the template according to the specific details of the development project. Double-check that all necessary fields are completed and accurate before proceeding.
3) Mail the documents
Mail the completed and signed LOC to:
City of Surrey – Finance
Attn: Letter of Credit Coordinator
13450 – 104th Avenue
5th Floor West
Surrey, BC V3T 1V8
A physical hard copy of an LOC is required to be received by the City to initiate the review and acceptance process.
Surety Bonds
A surety bond is a three-party contract obtained by a developer through an insurer and provided to the City as a form of security for Servicing Agreements or Development Cost Charge (“DCC”) instalment payments. The surety bond guarantees that the City of Surrey will receive payment directly from the insurer if the developer does not fulfill their obligations.
For additional information refer to City of Surrey's Surety Bond Policy.
- No pre-approval is required from the General Manager, Finance. Follow the steps outlined below to submit your surety bond for Finance review.
- The following information package and template is only applicable to surety bonds for DCC instalments. For information on Servicing Agreement surety bonds, contact Jeff Pang, Director, Land Development at [email protected].
How to submit a Surety Bond:
1) Download and review the instructions
Download and review the Surety Bond Information Package for detailed information on how to complete the surety bond template. Review the sample templates provided to ensure you understand the required format and information needed.
2) Download and complete the template
Use this template:
Insurers should complete the required information on the template according to the specific details of the development project. Double-check that all necessary fields are completed and accurate before proceeding.
3) Mail the documents
Mail the completed and signed surety bond to:
City of Surrey – Finance
Attn: Letter of Credit Coordinator
13450 – 104th Avenue
5th Floor West
Surrey, BC V3T 1V8
A physical hard copy of a surety bond is required to be received by the City to initiate the review and acceptance process.
Contact
Email: [email protected]
Phone: 604-591-4150