Cocke County Regional Planning Commission (RPC) has decided to stop asking developers to put up letters of credit (L/Cs) to guarantee that they comply with construction obligations.

The decision of the commission in the US state of Tennessee follows a similar recent decision by a local authority in Canada.

Performance bonds

The RPC unanimously approved a change to regulations for developers that gets rid of L/Cs and replaces them with performance bonds.

Demanding L/Cs has become increasingly controversial in Cocke Country, with the RPC last year holding several lengthy debates over their effectiveness.

Following suit

The unanimous vote followed a public hearing on the proposed revision.

Last month, the Canadian city of Airdrie said it would soften the terms of L/Cs it currently insists on from developers to ensure they undertake development obligations, (DC World News, 20 June 2013).

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.