What is a Letter of Credit and what other forms of security does TICO accept?
A Letter of Credit is a security deposit that TICO will keep until the registrant has filed two consecutive financial statements under section 22 of the Regulation. The Registrar may continue to keep the security if he has concerns about the Registrant’s compliance. TICO will only accept a Letter of Credit from a financial institution in Ontario or a certified cheque or bank draft in the amount of $10,000 payable to TICO. My business will be based in Ontario but I will be selling travel services off the Internet. My customers will be paying by credit card online and I will not have any walk-in sales. Do I still need a commercial location? Yes, the legislation requires that a travel retailer or travel wholesaler must carry on business from a permanent place of business that is not a dwelling unless the provisions of subsection 10(2) of Ontario Regulation 26/05 are met.
