Wyoming Administrative Code › Agency 044 - Insurance Dept › Sub-Agency 0002 - General Agency, Board or Commission Rules › Chapter 50 - CREDIT FOR REINSURANCE REGULATION › Section 50-13 - Letters of Credit Qualified Under Section 11

Current through July 13, 2024
(a) The letter of credit must be clean,
				irrevocable, and unconditional and issued or confirmed by a qualified United
				States financial institution as defined in
				W.S.
				26-5-114(a). The letter of
				credit shall contain an issue date and date of expiration and shall stipulate
				that the beneficiary need only draw a sight draft under the letter of credit
				and present it to obtain funds and that no other document need be presented.
				The letter of credit shall also indicate that it is not subject to any
				condition or qualifications outside of the letter of credit. The letter of
				credit itself shall not contain reference to any other agreements, documents,
				or entities, except as provided in subsection (h)(i) of this section. As used
				in this section, "beneficiary" means the domestic insurer for whose benefit the
				letter of credit has been established and any successor of the beneficiary by
				operation of law. If a court of law appoints a successor in interest to the
				named beneficiary, then the named beneficiary includes and is limited to the
				court appointed domiciliary receiver including conservator, rehabilitator, or
				liquidator.
(b) The heading of the
				letter of credit may include a boxed section containing the name of the
				applicant and other appropriate notations to provide a reference for the letter
				of credit. The boxed section shall be clearly marked to indicate that the
				information is for internal identification purposes only.
(c) The letter of credit shall contain a
				statement to the effect that the obligation of the qualified United States
				financial institution under the letter of credit is in no way contingent upon
				reimbursement with respect thereto.
(d) The term of the letter of credit shall be
				for at least one year and shall contain an "evergreen clause" which prevents
				the expiration of the letter of credit without due notice from the issuer. The
				"evergreen clause" shall provide for a period of no less than thirty (30) days'
				notice prior to the expiration date or nonrenewal.
(e) The letter of credit shall state whether
				it is subject to and governed by the laws of Wyoming or the Uniform Customs and
				Practice for Documentary Credits of the International Chamber of Commerce
				(Publication 600) (UCP 600) or International Standby Practices of the
				International Chamber of Commerce Publication 590 (ISP98), or any successor
				publication, and all drafts drawn thereunder shall be presentable at an office
				in the United States of a qualified United States financial
				institution.
(f) If the letter of
				credit is made subject to the Uniform Customs and Practice for Documentary
				Credits of the International Chamber of Commerce (Publication 500), or any
				successor publication, then the letter of credit shall specifically address and
				provide for an extension of time to draw against the letter of credit in the
				event that one or more of the occurrences specified in Article 17 of
				Publication 500 or any other successor publication, occur.
(g) If the letter of credit is issued by a
				financial institution authorized to issue letters of credit, other than a
				qualified United States financial institution as described in subsection (a) of
				this section, then the following additional requirements shall be met:
(i) The issuing financial institution shall
				formally designate the confirming qualified United States financial institution
				as its agent for the receipt and payment of the drafts; and
(ii) The "evergreen clause" shall provide for
				thirty (30) days notice prior to expiration date for nonrenewal.