Bond Program

Bond Service Fees

The Town of Indian Trail offers the Bond Program as a premium administration service to the development community and is designed to ensure the completion of required public improvements. Fees are calculated to recover the administrative and staffing costs to maintain sureties posted. 

Posting New Surety - $300.00
Reduction of Surety - $300.00
Replacement of Surety - $300.00
Release of Surety - $300.00

Surety Types

When the Engineering Department requires a surety for a project, the developer/builder has the option of providing a Letter of Credit, a Surety Bond, or a Cash Deposit. In the event of developer/builder failure, each of these surety types provides the Town of Indian Trail with a resource to contribute to the completion of the project in accordance with the Unified Development Ordinance. However, the surety types differ in their purpose and application.

  • Cash Sureties:  A certified check or money order made payable to, and deposited in the Town of Indian Trail's escrow account. A cash surety serves as a financial resource for the completion of improvements by the Town of Indian Trail in the event of Developer/Builder default. A Cash Deposit provides protection until the Town of Indian Trail returns the funds to the developer/builder. No renewal or policy terms are required.
  • Letter of Credit:  Developers/Builders obtain Letters of Credit from banks where they have established lines of credit/open loans. A letter of credit serves as a financial resource for the completion of improvements by the Town of the Indian Trail in the event of Developer/Builder default. Letters of Credit are generally effective for a minimum term of two years, with the expiry date clearly indicated on the document. The Town of Indian Trail requires all new and renewal letter(s) of credit for developer streets, sidewalk, right-of-way, and BMP bonds to contain the "Evergreen Clause." The "Evergreen Clause" specifically states the expiration of a letter of credit will not take place without a sixty-day notice by the issuer (the bank) to the Town of Indian Trail. If prior notice of expiration is not given by the issuer (the bank), the letter of credit is automatically extended for one year. If you have any questions regarding this or any other bond issue, please do not hesitate to contact Todd Huntsinger, Director of Engineering, at 704-821-5401.
  • Surety Bond: A Surety Bond is an agreement under which one party, the Surety (the surety company), guarantees to another party, the Owner or Obligee (the Town of Indian Trail), that a third party, the Principal (the developer or builder), will perform a contract (i.e., the subdivision plat or development) in accordance with the terms and conditions of the contract agreement.  There are several types of Surety Bonds - the type required by the Engineering Department is a "Performance Bond" - which protects the Town of Indian Trail from financial loss should the Principal fail to perform the contract (complete the required public improvements or development). The Surety investigates the financial history and past performance of the Principal before underwriting a surety bond. The Surety evaluates the Principal's "Four "C's" - Character, Continuity, Capital and Capacity. This is accomplished with a thorough review of references, experience, ability, financial strength, credit history, established relationships and lines of credit.  Establishing an initial relationship with a Surety requires an investment of time and effort on the part of the Principal - the Surety must be satisfied that the developer is a well-managed, profitable enterprise that keeps promises, deals fairly and performs obligations in a timely manner. Surety Bonds are distinctly different from insurance products. Since surety bonds guarantee a Principal's performance, the Surety fully expects that the Principal will honor their obligations. A surety bond may provide financial and/or project management resources for the Town of Indian Trail. In the event of Principal default, the Surety may: finance completion by the existing developer; assume responsibility and complete the project using developers of its choosing; or pay the Obligee (the Town of Indian Trail) the amount required to complete the project. Payment to the Obligee will never exceed the "penal sum" (face amount) of the bond; therefore, an accurate bond estimate is critical to ensure project completion in the event of Principal default. A surety bond serves as a financial resource for the completion of improvements by the Town of Indian Trail in the event of Developer/Builder default. Surety Bonds generally specify a term of one to two years within which the required improvements will be completed. The Town of Indian Trail requires a "continuation" or "verification" certificate to be provided by the Surety 60 days prior to the end of the last verified term of the bond. The continuation certificate amends the original document to reflect the extension of the effective date of coverage shown on the original bond for a period of no less than one full year.

Applications to post a new surety may be obtained online, by phone at 704-821-5401, or by emailing Todd Huntsinger, Director of Engineering.

Surety Reductions

Requests for a surety reduction for eligible sureties may be made at any time during the life of the project. Requests for a one-time reduction (excluding Best Management Practices (BMPs)) must be in writing using a Surety Reduction Request Form and must be accompanied by a copy of the recorded plat and any subsequent revisions (highlighted for installed sidewalk where appropriate).

Surety Reduction Reviews may require up to 15 business days to complete. Upon receipt of the reduction review results, the issuing Bank, Surety Company or Surety Agent will then require time to process the Amendment or Rider necessary to officially amend the Surety on file with the Engineering Department. We therefore encourage our customers to send Reduction Review Requests well in advance of due dates for Renewals (LOCs) or Continuation Certificates (Surety Bonds), as reduction reviews in progress do not affect due dates for these documents.

Surety Reduction Applications may be obtained online, by phone at 704-821-1314, or by emailing Todd Huntsinger, Director of Engineering.


Surety Release Applications can be obtained online, by phone at 704-821-1314, or by emailing Todd Huntsinger, Director of Engineering. Upon approved release, notification is sent to the Developer or Builder along with the original surety documents. Checks to return Cash Sureties are issued by the Finance Department and are sent – usually within 7-10 business days.

Mail all requests to:
Attention: Engineering Department
P.O. Box 2430
Indian Trail, NC 28079