Current through September 21, 2024
Irrevocable letters of credit shall comply with the following
requirements:
(a) The letter must be
payable to the Department in part or in full upon demand and receipt from the
Director of a notice of forfeiture issued in accordance with W.S. §
35-11-504(h);
(b) The letter shall not be in excess of ten
percent of the issuing or supporting bank's capital surplus account as shown on
a balance sheet certified by a certified public accountant;
(c) The Director shall not accept standby
letters of credit;
(d) The Director
shall not accept letters of credit from a bank for any person, on all permits
held by that person, in excess of the limitation imposed by W.S. §
13-3-402; and
(e) The letter of credit shall provide that:
(i) The bank will give prompt notice to the
operator and the Director of any notice received or action filed alleging the
insolvency or bankruptcy of the bank, or alleging any violations of regulatory
requirements that could result in suspension or revocation of the bank's
charter or license to do business;
(ii) In the event the bank becomes unable to
fulfill its obligations under the letter of credit for any reason, notice shall
be given immediately to the operator and the Director; and
(iii) Upon the incapacity of a bank by reason
of bankruptcy, insolvency, or suspension or revocation of its charter or
license, the permittee shall be deemed to be without financial assurance in
violation of the Act. The Director shall issue a notice of violation against
any operator who is without bond coverage, specifying a reasonable period to
replace bond coverage, not to exceed ninety days. During this period the
Director or their designated representative shall conduct weekly inspections to
ensure continuing compliance with other permit requirements, these rules and
the Act. If the notice is not abated in accordance with the schedule, a
cessation order shall be issued.
(iv) The irrevocable letter of credit may be
cancelled by the issuer only after ninety-days' notice to the Director, and
upon receipt of the Director's written consent, which may be granted only when
an alternative financial assurance substitution has been approved.
(f) The letter may only be issued
by a bank organized to do business in the U.S. that identifies by name,
address, and telephone number an agent upon whom any process, notice or demand
required or permitted by law to be served upon the bank may be served.
(i) If the bank fails to appoint or maintain
an agent in this State, or whenever any such agent cannot be reasonably found,
then the Director shall be an agent for such bank upon whom any process, notice
or demand may be served for the purpose of this Chapter. In the event of any
such process, the Director shall immediately cause one copy of such process,
notice or demand to be forwarded by registered mail to the bank at its
principal place of business. The Director shall keep a record of all processes,
notices, or demands served upon them under this paragraph, and shall record
therein the time of such service and their action with reference thereto.
(ii) Nothing herein contained
shall limit or affect the right to serve any process, notice or demand required
or permitted by law to be served upon the bank in any other manner now or
hereafter permitted by law.
