Digital Letter of Credit – Updated December 23/2022

BILD Calgary Region Bulletin 2022 – 81

As of January 1, 2023, the City of Calgary’s Development Commitments group will no longer accept Letters of credit on paper. All Letters of credit must be submitted digitally.

The digital LOCs are acceptable from Banks that have access to the (Society for Worldwide Interbank Financial Telecommunications) SWIFT network. For Canadian Schedule I, II or III Banks (under the Bank Act (RSC 1991, c. 46)), Letters of Credit require an issuer credit rating of at least A- (Standard & Poor’s) or equivalent.

After the performance security amount is confirmed, the City of Calgary’s Infrastructure Strategist will prepare the template of the LOC with the relevant information filled in. The LOC will be sent to the Developer to forward to their Bank for finalization. The Bank will fill in the remaining fields and send the digital LOC through the SWIFT network code ROYCCAT2XXX. RBC will inform Development Commitments of the submittal of LOC. Development Commitments will review the submitted LOC and provide confirmation to RBC that the LOC can be accepted. The Letter of credit has to be submitted prior to the Development Agreement being made available for signing.

Please note: Performance Bonds provided as security under the agreement or as required for top lift paving are still required to be submitted in paper form. At this time, Performance Bonds will not be accepted digitally.

The City’s Development Engineering bulletin can be accessed here