329 IAC 15-5-7 Letter of credit

Sec. 7. (a) The owner or operator of a waste tire storage site may comply with this rule by establishing a letter of credit on: (1) forms provided by the department; or (2) other forms approved by the department. (b) All letters of credit must contain the following: (1) The establishment of credit in the amount determined by section 3 of this rule. (2) Irrevocability. (3) An effective period of at least one (1) year and automatic extensions for periods of at least one (1) year unless the issuing institution provides written notification of cancellation by certified mail to both the owner or operator and the department at least one hundred twenty (120) days before the effective date of cancellation. (4) Provision that, upon written notice from the commissioner, the issuing institution for the letter of credit shall comply with the following: (A) State that the obligations of the owner or operator of the waste tire storage site have not been fulfilled. (B) Do either of the following: (i) If a standby trust fund is established in accordance with subsection (c), deposit funds equal to the amount of credit required under subdivision (1) into the standby trust fund. (ii) If the amount of credit required is less than twenty thousand dollars ($20,000) and a standby trust fund is not established, submit payments equal to the amount of credit required under subdivision (1) directly to the department for the purpose of accomplishing required closure work. (c) If the financial assurance amount determined under this rule is twenty thousand dollars ($20,000) or more, the owner or operator of the waste tire storage site shall establish a standby trust fund to be: (1) utilized in the event the owner or operator of the waste tire storage site has failed to fulfill closure obligations and the letter of credit is exercised; and (2) in accordance with section 5 of this rule. (d) The issuing institution must be an entity: (1) that has the authority to issue letters of credit; and (2) whose letters of credit operations are regulated and examined by a federal or state agency.