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Planning commission updates sample irrevocable letter of credit used in subdivision regulations
Summary
The commission approved a resolution replacing Appendix A of the subdivision regulations with an updated sample irrevocable letter of credit that requires notarization and additional contact information; staff said the form aligns with practices used by Knox County and was reviewed by the town attorney.
The Farragut Municipal Planning Commission on June 26 approved a resolution to amend the subdivision regulations by replacing Appendix A, the sample irrevocable letter of credit, with an updated version that increases contact information and requires notarization.
Staff said the town began accepting irrevocable letters of credit rather than surety bonds after problems cashing bonds; the current sample dated from February 2009. The updated sample reflects information staff have asked applicants to provide in recent years and was reviewed and approved by the town attorney, staff said.
The updated form adds notarization, more requested contact information to make it easier to contact applicants if the town must place a draw, and aligns the town’s form with a similar format already used by Knox County. Staff recommended approval of Resolution P.C.‑25‑O‑A to amend Appendix A; the commission voted unanimously to adopt it.
No public comment was offered on the item. The updated sample letter of credit will be used for future subdivision submissions requiring financial security.
