Nev. Admin. Code § 616B.543 - Required security deposit: Requirements for letter of credit
1. A letter of credit deposited pursuant to
NAC 616B.540 must:
(a) Include a statement
that no document other than the demand for payment under the terms of the
letter is necessary for payment.
(b) Be irrevocable.
(c) Be valid for at least 1 year and
automatically renew for each following year unless written notice is given by
the issuer to the Commissioner and the association at least 90 days before the
date of renewal.
(d) Be issued by a
bank chartered by this State or a bank that is a member of the United States
Federal Reserve System and has been approved by the Commissioner.
(e) Include a statement that it is not
subject to any conditions or qualifications other than the terms stated in the
letter. The letter may be the individual obligation of the financial
institution issuing it, but must not be contingent upon the institution's
ability to perfect any lien or security interest. The letter must not contain
references to any other agreements, documents or persons.
(f) Include a statement that the obligation
of the financial institution under the letter is not contingent upon
reimbursement.
2. The
heading of the letter of credit may include a boxed section containing the name
of the association and other appropriate notations. If such a section is
present, it must be marked clearly to indicate that the information is for
internal identification only, and does not affect the terms of the letter or
the financial institution's obligations under the letter.
Notes
NRS 616B.353, 616B.446, 679B.130
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