Section 710 IAC 2-5-3 - Letters of credit, bonds, negotiable securitiesAuthority: IC 23-2-4-24
Affected: IC 23-2-4-10; IC 23-2-4-11
Sec. 3.
(a) Letters of credit, surety bonds, and negotiable securities proposed to be filed with the commissioner in lieu of establishment of an escrow account under IC 23-2-4-10, shall be in an amount reasonably anticipated to be equal to or in excess of the maximum amount of entrance fees which might be otherwise subject to escrow requirements.(b) Surety bonds proposed to be filed shall be issued by a surety company authorized to do business in Indiana.(c) Letters of credit proposed to be filed shall be issued by a bank or trust company authorized to do business in Indiana.(d) Letters of credit shall be drawable on the commissioner's sight draft, accompanied by the commissioner's certification that contracting parties have been found to be entitled to refund of entrance fees.(e) Letters of credit, surety bonds, and negotiable securities must be accompanied by the undertaking of the provider not to accept any entrance fee which would make the amount of fees otherwise subject to escrow requirements exceed the amount of the letter of credit, surety bond, or negotiable securities. Securities Division; 710 IAC 2-5-3; filed Jan 30, 1985, 9:33 am: 8 IR 614; readopted filed May 31, 2002, 11:34 p.m.: 25 IR 3462; readopted filed Dec 2, 2008, 9:01 a.m.: 20081224-IR-710080819RFAReadopted filed 9/23/2015, 2:54 p.m.: 20151021-IR-710150280RFAReadopted filed 9/27/2021, 11:04 a.m.: 20211027-IR-710210374RFA