The contractor brought an ex parte motion to substitute a letter of credit for posted cash security under the Construction Lien Act.
The proposed letter of credit was made subject to ICC Publication 590.
The Master dismissed the motion, finding that the inclusion of the ICC Publication 590 term made the letter of credit non-equivalent to the prescribed Financial Guarantee Bond (Form 23), as it raised the potential for the issuer to refuse payment and embroil the Accountant of the Superior Court in litigation.
