Mississippi Administrative Code › Title 11 - Mississippi Department of Environmental Quality › Part 5 - Underground Storage Tank Regulations › Chapter 2 - Mississippi Commission on Environmental Quality Underground Storage Tanks Regulations Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST) (Adopted March 22, 1989; Amended August 25, 2011, Last Amended August 23, 2018) › Rule 11-5-2.8 - Financial Responsibility › Section 11-5-2.8-280.99 - Letter of credit

Current through June 25, 2024
(a) An owner or
				  operator may satisfy the requirements of § 280.93 by obtaining an
				  irrevocable standby letter of credit that conforms to the requirements of this
				  section. The issuing institution must 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 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(s) of state implementing
					 agency(ies)]
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
					 [insert, if more than one Director of a state implementing agency is a
					 beneficiary, "by any one of you"] 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
					 40 CFR
					 280.22, or the corresponding state
					 requirement, 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
				  40 CFR
				  280.93.
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
					 40 CFR
					 280.99(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 and
					 copyrighted by the International Chamber of Commerce," or "the Uniform
					 Commercial Code"].