OAR 863-049-0050. Letters of Credit

(1) For a certified, annually renewable letter of credit to be satisfactory to the Commissioner under ORS 696.527 in lieu of a surety bond or deposit, the letter of credit must: (a) Be executed by a bank; (b) Name the State of Oregon Real Estate Agency as beneficiary; (c) Make no reference to any other conditional agreement, document, or entity; (d) Be annually renewable, without amendment, for successive one-year periods from the stated expiration or any future expiration date until such time as notice is given in accordance with this section; (e) Provide for no less than sixty (60) calendar days notice to the Agency as beneficiary of any election not to renew the letter of credit; and (f) Be payable by sight draft or upon presentation at an office of the bank by an authorized representative of the beneficiary accompanied by a signed statement certifying that “The attached order from the Commissioner of the Oregon Real Estate Agency represents that the escrow agent is in violation of ORS 696.505–696.590.” (2) The Commissioner may require that a Letter of Credit include additional terms and conditions.