Township agrees to accept unions letter of credit for subdivision
Council here is accepting a letter of credit from Meridian Credit Union in the amount of $440,000 as security for the subdivision agreement between the township and 2073022 Ontario Inc.
Mayor Mike Broomhead said it is for the Eastridge subdivision in Arthur.
Wellington North councillors were equally clear that acceptance of letters of credit from credit unions would be decided on a case by case basis, giving due consideration to the financial strength of the specific financial institution offering a letter of credit as security.
Councillor Ross Chaulk noted that Meridian is one of the largest credit unions in Canada, “So it’s almost as good as the bank.”
The motion to accept the letter of credit passed without further comment.
