Subdivision Bonds

Get The Site or Subdivision Bonds You Need Today.

FCA is Canada’s Surety Bond Expert Since 1919.

What is a Subdivision Bond?

A Subdivision bond is also known as the Site Improvement bond or Subdivision Improvement bond.

A Subdivision bond protects a local government, guaranteeing that the developer will complete improvements that will become part of the public domain.

Examples of improvements covered under Subdivision bond are the following:

  • Water treatment facilities
  • Gutters
  • Sidewalks
  • Curbs
  • Lighting

Subdivision Bond is preferred to Letter-of-Credit

Who benefits under subdivision bond?


A Subdivision bond is considered as off-balance sheet security and so it does not impact developers ability to access credit, nor does it tie up a developer’s cash.


Subdivision bonds, often customized to each municipalities specific needs, are drafted to be liquid instruments. These bonds provide municipalities access to funds that can be used to correct a developer’s default.

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