6709.1 An owner may satisfy the requirements of § 6700 by obtaining an irrevocable standby letter of credit that meets the requirements of this section.

6709.2 The issuing institution shall be an entity that has the authority to issue letters of credit in the District of Columbia and whose letter of credit operations are regulated and examined by an agency of the federal government or the District of Columbia.

6709.3 Each letter of credit issued under this section shall be in the form prescribed in Appendix 67-7 to this chapter.

6709.4 An owner that uses a letter of credit to satisfy the requirements of § 6700 shall also establish a standby trust fund when the letter of credit is acquired.

6709.5 Under the terms of the letter of credit, all amounts paid pursuant to a draft by the Director shall be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the Director under § 6712. The standby trust fund shall meet the requirements specified in § 6711.

6709.6 Each letter of credit shall be irrevocable with a term specified by the issuing institution.

6709.7 Each letter of credit shall provide that credit be automatically renewed for the same term as the original term, unless, at least one hundred twenty (120) days before the current expiration date, the issuing institution notifies the owner by certified mail (return receipt requested) of its decision not to renew the letter of credit. Under the terms of the letter of credit, the one hundred twenty (120) days shall begin on the date when the owner receives the notice, as evidence by the return receipt.

SOURCE: Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5777 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999).