Developers bond

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KWAG2019

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A few questions on this: who is it lodged with? If the developer has gone bust years ago would it be considered an asset for debtors? Who would a local authority be taking legal action against to release the bond?

I’m asking because I thought the bond was held by the authority and developer if still solvent claimed it back and might be able to complete works for less than it and make more money.
 
The purpose of development bonds are to protect the local authority from costs associated with the installation and commissioning of services and infrastructure. They are held by the LA. If the development is completed to the required standards with all utilities and infrastructure like roads, paths, lighting completed, the bond gets returned. If those elements are not completed, the authority uses the bond to pay for those elements.

There isn't an option to reclaim those funds prior to the completion of the development and unless the development was largely complete it's unlikely that an authority would say there were funds left over to make available to creditors.
 
That’s what I understand by it. Who would the LA be suing to release the bond? Or is it a case that it might be an insurance bond and there is now a dispute about it; its validity or its value?
 
KWAG2019 said:
Who would the LA be suing to release the bond?
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They wouldn't sue anyone. If it was cash, they hold it and spend it whenever they get around to completing whatever works are outstanding. If it was an insurance bond they'd claim under the terms. The authorities are usually slow to act though, often requiring lots of canvassing and pressure before they will take a development like that in charge. Posters on here in the past have spoken of taking years to get a council moving.
 
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