Iowa Administrative Code › Agency 567 - Environmental Protection Commission › Title IX - Spills and Hazardous Conditions › Chapter 136 - Financial Responsibility for Underground Storage Tanks › Rule 567-136.10 - Letter of Credit

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An owner or
				operator may satisfy the requirements of rule
				567-136.4 (455B) by obtaining an
				irrevocable standby letter of credit that conforms to the requirements of this
				subrule. The issuing institution must be an entity that has the authority to
				issue letters of credit in Iowa and whose letter-of-credit operations are
				regulated and examined by a federal or state agency.
(2) The letter of credit must 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 Director of Iowa Department of Natural
				  Resources]
Dear Sir or Madam: We hereby establish our Irrevocable
				  Standby Letter of Credit No. __________ 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:
[List the number of tanks at each facility and the name(s)
				  and address(es) of the facility(ies) where the tanks are located. If more than
				  one instrument is used to assure different tanks at any one facility, for each
				  tank covered by this instrument, list the tank identification number provided
				  in the notification submitted pursuant to 567-subrule 135.3(3) and the name and
				  address of the facility.]
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 workers' 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 rule 567-136.4 (455B).
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 567-subrule 136.10(2) 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"].