N.J. Admin. Code § 7:13-13.18

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:13-13.18 - Financial assurance; letter of credit requirements

(a) A person who chooses to provide a letter of credit as financial assurance to guarantee the availability of funds pursuant to this subchapter shall submit to the Department the original letter of credit. The letter of credit shall:

1. Be issued by an entity that is licensed by the New Jersey Department of Banking and Insurance to transact business in the State of New Jersey, or by a Federally regulated bank;

2. Include any applicable Department file number, and the name, street address, lot, block, municipality, and county of the mitigation site;

3. Specify that the letter of credit is irrevocable and issued for a period of at least one year, and that it will be automatically extended thereafter for a period of at least one year;

4. Specify that, if the issuer of the letter of credit decides not to extend the letter of credit beyond the then current expiration date, the issuer shall notify the person providing the letter of credit and the Department by certified mail of that decision at least 120 calendar days before the current expiration date, beginning from the date of receipt by the Department as shown on the signed return receipt; and

5. Specify that the Department may access the letter of credit to pay for the cost of the mitigation project or mitigation bank, pursuant to N.J.A.C. 7:13-13.15(l).

N.J. Admin. Code § 7:13-13.18

Adopted by 48 N.J.R. 1067(a), effective 6/20/2016

Amended by 49 N.J.R. 2246(a), effective 7/17/2017