Wyoming Administrative Code › Agency 020 - Environmental Quality, Dept. of › Sub-Agency 0011 - Water Quality › Chapter 20 - PERMITTING, DESIGN AND OPERATION STANDARDS CONFINED SWINE FEEDING OPERATIONS › Part F - FINANCIAL ASSURANCE STANDARDS › Section 20-50 - Forms of Financial Assurance

Current through July 13, 2024
Financial assurance shall be accepted in a lump sum to be
					 used for any purpose under these regulations. Financial assurance shall be
					 executed in the amount calculated following the methods specified in these
					 regulations. By offering the forms of financial assurance required to meet
					 closure and corrective action requirements, the permittee of a confined swine
					 feeding operation and its surety represent that the form of financial assurance
					 offered is binding, irrevocable, unconditional, is financially guaranteed by
					 assets sufficient to meet the obligation, is a valid instrument made payable to
					 the Department, and fully complies with these regulations. The following forms
					 of financial assurance may be accepted:
(a) A letter of credit. A letter of credit
				  shall be subject to the following conditions:
(i) A letter of credit shall be accepted only
				  from a bank or lending institution licensed to do business in the State of
				  Wyoming and subject to banking laws and regulations of the State of Wyoming
				  with more than 50 percent of the bank's assets residing in the U.S.
(ii) The letter shall be irrevocable during
				  its term. The Department may approve the use of a letter of credit as security
				  according to a schedule approved within the permit. Any bank or lending
				  institution issuing a letter of credit shall notify the Director in writing by
				  certified mail at least ninety (90) days before the maturity date or expiration
				  of the letter of credit agreement of its intent not to extend the letter of
				  credit. A letter of credit shall be forfeited if not replaced by another form
				  of financial assurance thirty (30) days before expiration of the letter of
				  credit. All forms of financial assurance shall be approved by the Department
				  before being accepted. A forfeited letter of credit shall be converted to cash
				  by the bank or lending institution and the cash transferred to the
				  Department.
(iii) Letters of credit
				  shall be made payable to the Department both in writing and upon the records of
				  the bank issuing the letter of credit. Letters of credit must be payable upon
				  demand by the Department and the lending institutions or banks issuing letters
				  of credit are required to waive all rights of set off or liens against the
				  letters of credit.
(iv) The letter
				  of credit shall not be more than ten (10) percent of the bank's capital surplus
				  account as shown on a balance sheet and a financial statement certified by a
				  certified public accountant in good standing.
(v) No bank or lending institution shall
				  issue a letter of credit to any person or entity, on any permit or financial
				  assurance requirement required of that person or entity, in excess amounts
				  allowed under
				  W.S.
				  13-3-402. Violation of this provision shall
				  be deemed a violation of the permit and the Department shall declare forfeiture
				  of the letter of credit.
(vi) In
				  addition to those requirements set forth above, letters of credit shall provide
				  that:
(A) The bank or lending institution
				  shall give prompt notice to the permittee and the Director by certified mail of
				  any notice received or action filed alleging the insolvency or bankruptcy of
				  the bank or lending institution, or alleging any violations of regulatory
				  requirements that could result in suspension or revocation of the bank or
				  lending institution's charter or license to do business.
(B) In the event the bank or lending
				  institution becomes unable to fulfill its obligations under the letter of
				  credit for any reason, notice shall immediately be given to the permittee and
				  the Director by certified mail. In the event the permittee becomes aware that
				  the institution providing a letter of credit has become unable to fulfill its
				  obligations, the permittee shall immediately notify the Director by certified
				  mail.
(C) The permittee is in
				  violation of the permit if the financial assurance becomes invalid due to
				  failure of the issuing bank or lending institution. The bank or lending
				  institution shall be considered incapacitated due to bankruptcy, insolvency,
				  lapse, suspension, or revocation of its charter or license to do business in
				  Wyoming, or violation of the requirements set forth in these regulations. The
				  Director shall issue a notice of violation to any permittee without financial
				  assurance requiring replacement coverage within sixty (60) days. During this
				  period the Director or a designated representative shall conduct weekly
				  inspections to ensure continuing compliance with the permit. If any other
				  permit conditions are violated, the Director may suspend the permit.
(vii) Nothing herein shall limit
				  the right to serve any process, notice , or demand required or permitted by law
				  to be served upon the bank.