Illinois Administrative Code
Title 17 - CONSERVATION
Part 1535 - TIMBER BUYER LICENSING AND HARVEST FEES
Section 1535.16 - Bonding Requirements
Universal Citation: 17 IL Admin Code ยง 1535.16
Current through Register Vol. 48, No. 12, March 22, 2024
a) Surety Bond Requirements
1) Bonds shall be
signed by the timber buyer as principal, and by a good and sufficient corporate
surety, authorized to transact business as a surety in Illinois.
2) Each surety bond shall provide that the
bond shall not be cancelled by the surety except after not less than 60 days
notice to the Department. The notice shall be served upon the Department in
writing by registered or certified mail to the Department's Springfield
offices.
3) Prior to the expiration
of the 60 days notice of cancellation, the timber buyer shall deliver to the
Department a replacement bond. If the bond is not delivered, all activities
covered by the permit and bond shall cease at the expiration of the 60 day
period.
b) Other Securities Requirements
1) Letters of credit
shall be subject to the following conditions:
A) The letter may only be issued by a bank
organized or authorized to do business in the United States (issuing bank). If
the issuing bank does not have an office for collection in Illinois, there
shall be either a confirming bank designated that is authorized to accept,
negotiate and pay the letter upon presentment in Illinois, or an Illinois
registered agent designated by the issuing bank.
B) Letters of credit shall be irrevocable
during their terms. A letter of credit shall be forfeited and shall be
collected by the Department if not replaced by other suitable bond or letter of
credit at least 30 days before its expiration date.
C) The letter of credit shall provide on its
face that the Department, its lawful assigns, or the attorneys for the
Department or its assigns, may sue, waive notice and process, appear on behalf
of, and confess judgment against the issuing bank (and any confirming bank) in
the event that the letter of credit is dishonored. The letter of credit shall
be deemed to be made in Sangamon County, Illinois, for the purpose of
enforcement and any actions thereon shall be enforceable in the Courts of
Illinois, and shall be construed under Illinois law.
2) Certificates of deposit shall be subject
to the following conditions:
A) The Department
shall require that certificates of deposit be made payable to or assigned to
the Department both in writing and upon the records of the bank issuing the
certificates. If assigned, the Department shall require the banks issuing these
certificates to waive all rights of setoff or liens against those
certificates.
B) Any interest
accruing on a certificate of deposit shall be for the benefit of the timber
buyer.
C) The certificate of
deposit, if a negotiable instrument, shall be placed in the Department's
possession. If the certificate of deposit is not a negotiable instrument, a
withdrawal receipt, endorsed by the timber buyer, shall be placed in the
Department's possession.
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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