020-6 Wyo. Code R. §§ 6-3 - Irrevocable Letters of Credit
(a) Letters of
credit as authorized by W.S. §
35-11-418, shall be subject to the
following conditions and submitted on forms provided by the Department:
(i) 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. §
35-11-421;
(ii) 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;
(iii) The Administrator shall not accept
standby letters of credit;
(iv) The
Administrator 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
(v) The letter of credit shall provide that:
(A) The bank will give prompt notice to the
permittee 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 which could result in suspension or revocation of the bank's
charter or license to do business;
(B) 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 permittee and the Director; and
(C) 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 performance bond coverage
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 90 days. During this period the Director
or his designated representative shall conduct weekly inspections to ensure
continuing compliance with other permit requirements, the regulations and the
Act. If the notice is not abated in accordance with the schedule, a cessation
order shall be issued.
(D) The
irrevocable letter of credit may be cancelled by the issuer only after ninety
(90) 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.
(b) The letter may only be issued by a bank
organized to do business in the U.S. which 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 him under this paragraph, and shall record
therein the time of such service and his 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.
Notes
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