Letter of Credit / Sureties
Portland Subdivision Regulations, Article III, requires any applicant for a Subdivision Plat to submit a Subdivision Surety in the amount determined by the Enforcing Officer (City Planner). Additional sureties may be required including; Land Disturbance, Maintenance and Utility sureties. The Enforcing Officer (City Planner), or other utility service provider, determines the amount of all sureties.
General Requirements for Submitting a Surety
- A surety shall be in the form of cash, certified check, or Irrevocable Letter of Credit.
- All Irrevocable Letters of Credit submitted to the City must be payable at a local bank within Davidson County (Co.), Macon Co., Robertson, Co., Trousdale Co. or Wilson Co., Tennessee or Allen Co. or Simpson Co., Kentucky.
- The surety shall name the City of Portland as obligee, shall comply with all statutory requirements and shall be satisfactory to the City Attorney as to form, sufficiency of surety, and manner of execution.
- All Irrevocable Letters of Credit shall be issued for such time as the Planning Commission deems necessary for the completion of the improvements.
- Letters of Credit shall in no event exceed one year and must contain automatic renewal provisions, that provide for automatic renewal of the Irrevocable Letter of Credit unless the City is provided at least sixty days notice of non-renewal by the issuer of said Irrevocable Letter of Credit.
- Upon proof of difficulty, the developer may petition the City, by completing the form below, for an extension of time for completion of improvements. The Planning Commission may, upon proof of difficulty, grant an additional extension of one year.
- A surety may be reduced by the City upon actual completion and inspection of site improvements and then only to the ratio that the improvements completed bears to the total improvements for the plan. In no event shall a surety be reduced below fifteen % of the principal amount prior to final acceptance of all items covered under the surety. A surety reduction shall be approved a maximum of twice a year and not more than once in any three-month period.
- A surety may be released from obligation once all improvements are complete and accepted by the City and final inspection is satisfied. In some cases, a Maintenance Surety will be required for one year after release of the performance surety.
Download and print the Surety Requirements and Example (PDF).