Illinois Administrative Code › Title 32 - ENERGY › Part 326 - FINANCIAL ASSURANCE REQUIREMENTS › Section 326.110 - Letter of Credit as a Financial Assurance Arrangement

Current through Register Vol. 48, No. 28, July 12, 2024
If a licensee elects to satisfy the financial assurance
				requirements of Section
				326.90
				of this Part by filing an irrevocable standby letter of credit, the irrevocable
				standby letter of credit supporting this guarantee shall conform to the
				following requirements:
a) The
			 institution issuing the letter of credit shall be an entity that has the
			 authority to issue letters of credit and whose letter of credit operations are
			 regulated and examined by a federal or Illinois agency.
b) The wording of the letter of credit shall
			 contain the substantive provisions specified in Appendix C of this Part.
			 Additional conditions may be agreed to between the licensee and the issuing
			 institution so long as no requirement of this Part nor required provision is
			 avoided or altered and no additional requirements are placed on the
			 Agency.
c) The letter of credit
			 shall be accompanied by a letter from the licensee referring to the letter of
			 credit by number, issuing institution and date and providing the following
			 information: the radioactive material license numbers, names and addresses of
			 the facilities and the amount of funds for each license assured for reclaiming
			 of the facilities by the letter of credit.
d) The letter of credit shall be irrevocable
			 and issued for a period of at least 1 year. The expiration date of the letter
			 of credit shall be automatically extended for a period of at least 1 year
			 unless, at least 180 days before the current expiration date, the issuing
			 institution notifies both the licensee and the Agency by certified mail, return
			 receipt requested, of a decision not to extend the expiration date. The 180
			 days will begin on the date when both the licensee and the Agency have received
			 the notice, as evidenced by the return receipts. Unless released by the Agency,
			 the Agency may draw upon this letter of credit if a new letter of credit or
			 other financial assurance arrangements, approved in writing by the Agency, is
			 not furnished 60 days prior to the expiration date. The Agency may delay the
			 drawing if the issuing institution grants an extension of the term of this
			 letter of credit. During the last 30 days of any extension, the Director may
			 draw on this letter of credit if the licensee has failed to provide an
			 alternative financial assurance arrangement approved in writing by the
			 Agency.
e) The letter of credit
			 shall be in an amount, after considering other financial assurance arrangements
			 that are in place, sufficient to provide the necessary funds in order to
			 terminate the license in accordance with the requirements of 32 Ill. Adm. Code
			 330.
f) The Director may draw on
			 the letter of credit as provided in Section
			 326.180
			 of this Part. The Director may also draw on the letter of credit if the
			 licensee does not establish alternative financial assurance arrangements as
			 specified in Section
			 326.170
			 of this Part.