Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 650 - CLOSURE PLANS AND DEMONSTRATION OF FINANCIAL CAPABILITY › Part III - Closure Plans and Financial Assurance Criteria › Section 9VAC25-650-110 - Letter of credit

Current through Register Vol. 40, No. 24, July 15, 2024
A. An owner or
				  operator may satisfy the requirements of this chapter by obtaining an
				  irrevocable standby letter of credit that conforms to the requirements of this
				  section and by submitting an originally signed duplicate of the letter of
				  credit to the department. The issuing institution shall be an entity that has
				  the authority to issue letters of credit in the Commonwealth of Virginia and
				  whose letter-of-credit operations are regulated and examined by a federal
				  agency or the State Corporation Commission.
B. The letter of credit shall be on financial
				  institution letterhead and worded as follows, except that instructions in
				  parentheses are to be replaced with the relevant information and the
				  parentheses deleted.
IRREVOCABLE STANDBY LETTER OF CREDIT
(Name and address of issuing institution)
Beneficiary:
Director
Department of Environmental Quality (DEQ)
P.O. Box 1105
Richmond, Virginia 23218
1111 East Main Street, Suite 1400
Richmond, Virginia 23218
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, ($(insert dollar amount)), available upon presentation
					 of
(1) your sight draft, bearing
				  reference to this letter of credit, No._______ and
(2) your signed statement reading as follows:
"I certify that the amount of the draft is payable pursuant
					 to regulations issued under authority of § 62.1-44.18:3 of the Code of
					 Virginia."
This letter of credit may be drawn on to implement the
					 closure plan for the facility identified below in the amount of (in words)
					 ($(insert dollar amount)). (Name of facility and address of the facility
					 assured by this mechanism, and number of hookups served by the system.)
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 the Director of the DEQ and the 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 the 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
					 the Director of the DEQ and the 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 submit the amount of the draft directly to DEQ
					 in accordance with your instructions.
We certify that the wording of this letter of credit is
					 identical to the wording required in 9VAC25-650-110 B as such regulations were
					 constituted on the date shown immediately below.
Attest:
(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").