Surety Bond
A surety bond is a three‑party agreement in which a developer obtains a bond from an insurer and provides it to the Township as security for Development Cost Charge (DCC) instalment payments. The bond ensures that, if the developer fails to meet their payment obligations, the Township of Langley can receive the outstanding amount directly from the insurer.
The Township of Langley will accept surety bonds for development cost charge ("DCC") instalments in accordance with the Development Charge (Instalments) Regulation (B.C. Reg. 166/84), as amended.
We require each insurer to use our standard surety bond template form ensuring the form is accurately completed.
No changes to the template will be permitted.
Each surety bond can only have one purpose (i.e. one DCC type only) and the security amount cannot be split over additional surety bonds or other security.
Please complete only one subsection (i.e., i to v) under section A in the template for each Surety Bond.
Instructions:
All surety bonds must:
- be issued in Canadian dollars only
- have a coverage limit of at least 100 per cent of the required security amount and
- be executed in a province in which the insurer is licenced to carry on business.
Along with the surety bond, please provide evidence that the insurer has:
- business authorization issued under the Financial Institutions Act (British Columbia); and
- at least one of the following credit ratings:
- a rating of at least A-from AM Best;
- a rating of at least A+ from Fitch Ratings;
- a rating of at least A1 from Moody’s;
- a rating of at least A (high) from Morningstar DBRS; or
- a rating of at least A+ from S&P Global Ratings.
Unless the insurer has at least one of the foregoing credit ratings, we will decline to accept the deposit of a surety bond.
For questions, please contact Iris Koselowski at surety@tol.ca or 604-533-6022.