Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Bureau of Fire Services › Underground Storage Tank Regulations. R 29.2101-29.2192 › AMENDMENTS TO ADOPTED FEDERAL REGULATIONS › Subpart H - FINANCIAL RESPONSIBILITY › Section R. 29.2163g - Letter of credit

Current through Vol. 24-12, July 15, 2024
Rule 63g. Section 280.99 is added as adopted from the
						July 15, 2015, EPA-UST rules as follows:
Section 280.99.
(a) An O/O may satisfy the requirements of
					 section 280.93 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 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 that 1 Director of a state implementing agency is a
						beneficiary, "by any 1 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 UST(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 1 instrument is used to assure different tanks at any 1 facility, for
						each tank covered by this instrument, list the tank identification number
						provided in the notification submitted pursuant to 40 C.F.R. part 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
					 UST;
(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 C.F.R. part
					 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 C.F.R. part 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 Internal Chamber of Commerce," or "the Uniform
						Commercial Code"].