Indemnity Deposits

Indemnity Deposits

Effective August 3, 2010, as per By-law 106-2010 and applicable to all new and currently outstanding Indemnity Deposits:

"Where a deposit has been paid in accordance with the provisions of By-law 106-2010 and remains unclaimed for a period of seven years, the City Treasurer may, at the request of the Chief Building Official, transfer to the general funds of the Corporation all such deposits against which no claim has been made, free of and from any and all claims whatsoever."

About Indemnity Deposits:

• An indemnity deposit is a financial security deposited at the time of the application for any Engineering Department permits. This deposit will ensure the repair of any damages that may occur to the public right-of-way during the course of the construction.
• Normally, at the completion of a construction project, the inspector inspects the public right-of-way. If the inspector notes there are no damages to the right-of-way, he/she will complete the permit. Indemnities take 45 days to be released to Finance for refund.
• At this point, the Cashier will request that the Finance Department refund the indemnity back to the permit holder. They will in turn mail out the refund cheque to the address that was given at the time the indemnity was paid. This process can take approximately two weeks. The refund cheque will not be issued over the counter.
• If the inspector finds the work has not been done to our Standard Specifications or there has been damage to other infrastructure in the public right-of-way, the permit holder or adjacent property owner will be advised and restoration will be required.
• Should the permit holder fail to undertake the required remedial action, an order will be issued under By-Law #25-2010 to the permit holder or adjacent property owner for the remedial action to be carried out (if the works are deemed unsafe to the public, then the order's compliance date will be immediate).
• In the event that the remedial action is not undertaken, the corrective works will be undertaken at the contraveners expense. In the event that the indemnity deposit is insufficient to cover the costs of the work, the remainder of the costs shall be collected in the same manner as property taxes as per By-Law #25-2010.