Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 900 - CERTIFICATION OF NONPOINT SOURCE NUTRIENT CREDITS › Part VI - Financial Assurance › Section 9VAC25-900-310 - Letter of credit

Current through Register Vol. 40, No. 24, July 15, 2024
A. An owner may
				  satisfy the requirements of this part 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 Virginia State Corporation Commission.
B. The letter of credit shall be irrevocable
				  and issued for a period of at least one year. The letter of credit shall
				  provide that the expiration date will be automatically extended for a period of
				  at least one year. If the issuing institution decides not to extend the letter
				  of credit beyond the current expiration date, it shall, at least 120 days
				  before the expiration date, notify both the owner and the department by
				  certified mail of that decision. The 120-day period will begin on the date of
				  receipt of letter of credit's notice of cancellation by the department as shown
				  on the signed return receipt. If the letter of credit is canceled by the
				  issuing institution, the owner shall obtain alternate evidence of financial
				  assurance to be in effect prior to the expiration date of the letter of
				  credit.
C. The owner shall compare
				  the cost estimate with the face amount of the letter of credit:
1. Annually, at least 60 days prior to the
				  anniversary date of the initial approval by the department of the release of
				  credits for exchange. If the face amount of the letter of credit is less than
				  the amount of the cost estimate, the owner shall, by the anniversary date of
				  the initial approval by the department of the release of credits for exchange,
				  increase the face amount of the letter of credit so that its value at least
				  equals the amount of the cost estimate, or obtain other financial assurance as
				  specified in this part to cover the difference. If the face amount of the
				  letter of credit is greater than the total amount of the cost estimate, the
				  owner may submit a written request to the director for permission to reduce the
				  face amount of the letter of credit to the amount of the cost estimate;
				  and
2. Whenever the cost estimate
				  changes. If the face amount of the letter of credit is less than the amount of
				  the new cost estimate, the owner shall, within 60 days of the change in the
				  cost estimate, increase the face amount of the letter of credit so that its
				  value at least equals the amount of the new estimate or obtain other financial
				  assurance as specified in this part to cover the difference. If the face amount
				  of the letter of credit is greater than the total amount of the cost estimate,
				  the owner may submit a written request to the director for permission to reduce
				  the face amount of the letter of credit to the amount of the cost
				  estimate.