When starting a new project, developers must secure the project with the township. This can be in the form of:
- Bank issued Irrevocable Letter of Credit (ILOC,)
- Or a surety issued Site/Subdivision Bond
The International Risk Management Institute says a surety bond is better than an ILOC:
“Corporate surety bonds are far and away the most preferred option for most owner/developers when you consider the potential disadvantages of the alternative guarantee forms.”
Now you know. Too late if an ILOC was already filed with the township… or is it? Actually, our surety bonds can be filed to replace / release the ILOC. Your banker won’t tell you that either!
This is a great move for developers! Get back your cash. Use it to acquire or start a new project. It’s NOT too late the fix the ILOC mistake if you know where to go. Most sureties won’t write this type of bond but at FIA, it’s our specialty!
FIA is also one of the few bonding companies that will write Down-payment bonds for it’s Home Builders freeing up even more usable cash for your company.
If you have an immediate need for a Site/Subdivision bond or are interested in replacing an existing ILOC with a bond, call us at 856-304-7348.
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN, FL, GA, AL, OK, TX