W. Va. Code R. § 60-11-13

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 60-11-13 - Letters of Credit

13.1. An owner may satisfy the bonding requirements of these rules by submitting a letter of credit that:

13.1.a. Is issued by a bank organized and authorized to do business in the United States;

13.1.b. Is irrevocable prior to being released by the department;

13.1.c. Is payable to the department in part or in full upon demand and receipt from the department of a notice of forfeiture issued in accordance with these rules;

13.1.d. Provides, upon expiration, if the department has not notified the bank in writing that a substitute bond has been provided or is not required, the bank shall immediately pay the department the full amount of the letter of credit less any previous drafts;

13.1.e. Is not for an amount in excess of 10 percent of the bank's capital surplus account as shown on a balance sheet certified by a certified public accountant and submitted to the department with the letter of credit;

13.1.f. Is for an amount that does not exceed three times the bank's maximum single obligation; and

13.1.g. Is automatically renewable annually on the letter of credit anniversary date.

13.2. The department shall review a bank's qualifications annually before a letter of credit is renewed. If the department determines that a bank has become unable to fulfill its obligations under the letter of credit, the department shall, in writing, notify the owner and specify a reasonable period, not to exceed 90 days, in which the owner shall replace the bond.

W. Va. Code R. § 60-11-13