1. A time certificate of deposit with a bank
chartered by this State or a bank that is a member of the United States Federal
Reserve System which is made payable to the self-insurer and the
Department.
2. A surety bond which
is issued by a company authorized and licensed to transact the business of
surety insurance in this State and which is countersigned by a resident agent
licensed in this State.
4. A letter of credit that:
(a) Includes a clause stating that no
document other than a demand for payment under the terms of the letter is
necessary for payment;
(b) Is
irrevocable;
(c) Does not expire
unless written notice is given by the issuer to the Department not less than 30
days before the date of expiration;
(d) Is issued by a bank that:
(1) Is chartered by this State or is a member
of the United States Federal Reserve System; and
(2) Has been approved by the
Department;
(e) Includes
a clause stating that the letter of credit is not subject to any condition or
qualification that is not specified in the letter of credit;
(f) Although it may be the individual
obligation of the issuer, is not contingent on the ability of the issuer to
perfect any lien or security interest;
(g) Does not contain any reference to another
agreement, agency, document or person;
(h) Includes a clause stating that the
obligation of the issuer under the letter of credit is not contingent on
reimbursement; and
(i) If the
letter of credit includes a boxed section in the heading that sets forth the
name of the applicant and other appropriate notations, is clearly marked in the
boxed section to indicate that the information set forth therein is for
internal identification only and does not affect the terms of the letter of
credit or the obligations of the issuer.
5. Other forms of security which are
acceptable to the Department.
[Dep't of Motor Veh.,
Self-insurance Reg. §§ VII-X, eff. 4-29-82]-(NAC A by R162-01,
2-12-2002; R164-03, 10-31-2005)
