Louisiana Administrative Code › Title 33 - ENVIRONMENTAL QUALITY › Part XI - Underground Storage Tanks › Chapter 11 - Financial Responsibility › Section XI-1119 - Letter of Credit

Current through Register Vol. 50, No. 6, June 20, 2024
A. An owner or
				operator may satisfy the requirements of LAC 33:XI.1107 by obtaining an
				irrevocable standby letter of credit that conforms to the requirements of this
				Section. The issuing institution shall be an entity that has the authority to
				issue letters of credit in each state where used and whose letter-of-credit
				operations are regulated and examined by a federal or state agency.
B. The letter of credit shall be worded as
				follows, except that instructions in brackets are to be replaced with the
				relevant information and the brackets deleted.
Irrevocable Standby Letter of Credit
[Name and address of issuing institution]
[Name and address of administrative authority of the
				  Department of Environmental Quality]
Dear Sir or Madam:
We hereby establish our Irrevocable Standby Letter of
				  Credit
Number ________ in your favor, at the request and for the
				  account of [owner or operator name] of [address] up to the aggregate amount of
				  [in words] U.S. dollars $[insert dollar amount], available upon presentation
				  of:
1. your sight draft, bearing
				reference to this letter of credit, No. ________; and
2. your signed statement reading as follows:
"I certify that the amount of the draft is payable pursuant
				  to regulations issued under authority of Subtitle I of the Solid Waste Disposal
				  Act, as amended."
This letter of credit may be drawn on to cover [insert:
				  "taking corrective action" and/or "compensating third parties for bodily injury
				  and property damage caused by" either "sudden accidental releases" or
				  "nonsudden accidental releases" or "accidental releases"] arising from
				  operating the underground storage tank(s) identified below in the amount of [in
				  words] $[insert dollar amount] per occurrence and [in words] $[insert dollar
				  amount] annual aggregate:
The letter of credit may not be drawn on to cover any of the
				  following:
a. any obligation of
				[insert owner or operator] under a worker's compensation, disability benefits,
				or unemployment compensation law or other similar law;
b. bodily injury to an employee of [insert
				owner or operator] arising from, and in the course of, employment by [insert
				owner or operator];
c. bodily
				injury or property damage arising from the ownership, maintenance, use, or
				entrustment to others of any aircraft, motor vehicle, or watercraft;
d. property damage to any property owned,
				rented, loaned to, in the care, custody, or control of, or occupied by [insert
				owner or operator] that is not the direct result of a release from a petroleum
				underground storage tank;
e. bodily
				injury or property damage for which [insert owner or operator] is obligated to
				pay damages by reason of the assumption of liability in a contract or agreement
				other than a contract or agreement entered into to meet the requirements of LAC
				33:XI.1107.
This letter of credit is effective as of [date] and shall
				  expire on [date], but such expiration date shall be automatically extended for
				  a period of [at least the length of the original term] on [expiration date] and
				  on each successive expiration date, unless, at least 120 days before the
				  current expiration date, we notify [owner or operator] by certified mail that
				  we have decided not to extend this letter of credit beyond the current
				  expiration date. In the event that [owner or operator] is so notified, any
				  unused portion of the credit shall be available upon presentation of your sight
				  draft for 120 days after the date of receipt by [owner or operator], as shown
				  on the signed return receipt.
Whenever this letter of credit is drawn on under and in
				  compliance with the terms of this credit, we shall duly honor such draft upon
				  presentation to us, and we shall deposit the amount of the draft directly into
				  the standby trust fund of [owner or operator] in accordance with your
				  instructions.
We certify that the wording of this letter of credit is
				  identical to the wording specified in LAC 33:XI.1119.B as such regulations were
				  constituted on the date shown immediately below.
[Signature(s) and title(s) of official(s) of issuing
				  institution]
[Date]
This credit is subject to [insert "the most recent edition
				  of the Uniform Customs and Practice for Documentary Credits, published by the
				  International Chamber of Commerce," or "the Uniform Commercial Code"].