What is a Subdivision Bond?
A pay on demand subdivision bond is a surety bond that is becoming more widely accepted by municipalities in Ontario and across Canada. This bond is being used to meet the security requirements under a Subdivision or Site Plan Agreement, in place of a Letter of Credit. The bond essentially guarantees the same obligations that are currently being secured by a letter of credit. It guarantees the completion and adherence to the underlying subdivision agreement. The bond wording can also be customized to meet each municipalities unique requirements.