- (1) A letter of credit may be used in lieu of establishing and maintaining a merchandise and services trust. The letter of credit, its form, and amount must be approved by the Board prior to use.
- (2) The letter of credit must be “evergreen,” meaning it will not expire without an affirmative action by the issuer of the letter of credit. The amount of the letter of credit shall be determined in the same manner as indicated in Rule 395-X-11-.06 for the amount of surety bonds.
Author: Charles M. Perine
Statutory Authority: Code of Ala. 1975, §§34-13-26, 34-13-27, 34-13-170 to -277.
History: New Rule: Published March 29, 2024; effective May 13, 2024.