|
||||||
|---|---|---|---|---|---|---|
| Home | 29 CFR | 40 CFR | 49 CFR | Federal Register | MSDS Search | Purchase CFR e-Books |
§280.99 Letter of credit.
(a) An owner or operator may satisfy the requirements of §280.93 by obtaining an irrevocable standby letter of credit that conforms to the requirements of this section. The issuing institution must be an entity that has the authority to issue letters of credit in each state where used and whose letter-of-credit operations are regulated and examined by a federal or state agency.
(b) The letter of credit must be worded as follows, except that instructions
in brackets are to be replaced with the relevant information and the brackets
deleted:
IRREVOCABLE STANDBY LETTER OF CREDIT
[Name and address of issuing institution]
[Name and address of Director(s) of state implementing agency(ies)] Dear Sir or Madam: We hereby establish our Irrevocable Standby Letter of
Credit No. ___ in your favor, at the request and for the account of [owner or
operator name] of [address] up to the aggregate amount of [in words] U.S.
dollars ($[insert dollar amount]), available upon presentation [insert, if more
than one Director of a state implementing agency is a beneficiary, "by any one
of you"] of
(1) your sight draft, bearing reference to this letter of credit, No. ___,
and
(2) your signed statement reading as follows: "I certify that the amount of
the draft is payable persuant to regulations issued under authority of Subtitle
I of the Resource Conservation and Recovery Act of 1976, as amended."
This letter of credit may be drawn on to cover [insert: "taking corrective
action" and/or "compensating third parties for bodily injury and property damage
caused by" either "sudden accidental releases" or "nonsudden accidental
releases" or "accidental releases"] arising from operating the underground
storage tank(s) identified below in the amount of [in words] $[insert dollar
amount] per occurrence and [in words] $[insert dollar amount] annual aggregate:
[List the number of tanks at each facility and the name(s) and address(es) of
the facility(ies) where the tanks are located. If more than one instrument is
used to assure different tanks at any one facility, for each tank covered by
this instrument, list the tank identification number provided in the
notification submitted pursuant to 40 CFR 280.22, or the corresponding state
requirement, and the name and address of the facility.] The letter of credit may not be drawn on to cover any of the following: (a) Any obligation of [insert owner or operator] under a workers'
compensation, disability benefits, or unemployment compensation law or other
similar law;
(b) Bodily injury to an employee of [insert owner or operator] arising from,
and in the course of, employment by [insert owner or operator];
(c) Bodily injury or property damage arising from the ownership, maintenance,
use, or entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned, rented, loaned to, in the care,
custody, or control of, or occupied by [insert owner or operator] that is not
the direct result of a release from a petroleum underground storage tank;
(e) Bodily injury or property damage for which [insert owner or operator] is
obligated to pay damages by reason of the assumption of liability in a contract
or agreement other than a contract or agreement entered into to meet the
requirements of 40 CFR 280.93. This letter of credit is effective as of [date] and shall expire on [date],
but such expiration date shall be automatically extended for a period of [at
least the length of the original term] on [expiration date] and on each
successive expiration date, unless, at least 120 days before the curent
expiration date, we notify [owner or operator] by certified mail that we have
decided not to extend this letter of credit beyond the current expiration date.
In the event that [owner or operator] is so notified, any unused portion of the
credit shall be available upon presentation of your sight draft for 120 days
after the date of receipt by [owner or operator], as shown on the signed return
receipt.
Whenever this letter of credit is drawn on under and in compliance with the
terms of this credit, we shall duly honor such draft upon presentation to us,
and we shall deposit the amount of the draft directly into the standby trust
fund of [owner or operator] in accordance with your instructions.
We certify that the wording of this letter of credit is identical to the
wording specified in 40 CFR 280.99(b) as such regulations were constituted on
the date shown immediately below. [Signature(s) and title(s) of official(s) of issuing institution] [Date] This credit is subject to [insert "the most recent edition of the Uniform
Customs and Practice for Documentary Credits, published and copyrighted by the
International Chamber of Commerce," or "the Uniform Commercial
Code"]. (c) An owner or operator who uses a letter of credit to satisfy the
requirements of §280.93 must also establish a standby trust fund when the letter
of credit is acquired. Under the terms of the letter of credit, all amounts paid
pursuant to a draft by the Director of the implementing agency will be deposited
by the issuing institution directly into the standby trust fund in accordance
with instructions from the Director under §280.108. This standby trust fund must
meet the requirements specified in §280.103.
(d) The letter of credit must be irrevocable with a term specified by the
issuing institution. The letter of credit must provide that credit be
automatically renewed for the same term as the original term, unless, at least
120 days before the current expiration date, the issuing institution notifies
the owner or operator by certified mail of its decision not to renew the letter
of credit. Under the terms of the letter of credit, the 120 days will begin on
the date when the owner or operator receives the notice, as evidenced by the
return receipt.
[53 FR 37194, Sept. 23, 1988, as amended at 59 FR 29960, June 10,
1994]
