09.05.01 - Release of Bonds
CITY OF BOYNTON BEACH, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: 09 Finance & Budget Policy No. 09.05.01 SECTION: 05 Bonds & Letters of Credit Page: 1 of 1 SUBJECT: 01 Release of
Bonds The policy for the release of bonds is as follows: 1. All performance bonds, cash bonds, and letters of credit posted with the City of Boynton Beach for the exclusive purpose of
guaranteeing performance of the purchase of capital outlay or completion of a public improvement project shall be finally released by resolution of the City Commission upon the final
receipt of certification/approval of the Department Head on said purchase or project. Singling out letters of credit, when these instruments are utilized, they shall be approved for
use by the City Commission, by resolution coordinated through the Legal Department (in lieu of a performance or cash bond), and posted with the City’s local depository (financial institution).
The purpose for this recommendation is simply to protect the City of Boynton Beach in assuring that funds for the purchase or the public improvement will be as much as possible guaranteed
should the vendor and;/or developer/contractor not complete their obligation to perform. If in fact a letter of credit is filed with a financial institution it should be one that is
stable and can assure performance, and will not be in a position to go under in the near future. EFFECTIVE DATE: February 6, 1990 REVISED DATE: January 15, 2004 Kurt Bressner Kurt Bressner
City Manager 1