19.15.8.11

Additional requirements for letters of credit:

1. A. The division may accept irrevocable letters of credit issued by national or state-chartered banking associations.
2. B. Letters of credit shall be irrevocable for a term of not less than five years, unless the applicant shows good cause for a shorter time period.
3. C. Letters of credit shall provide for automatic renewal for successive, like terms upon expiration, unless the issuer has notified the division in writing of non-renewal at least 30 days prior to expiration.
4. D. The division may forfeit and collect a letter of credit if not replaced by an approved financial assurance at least 30 days before the expiration date.
5. E. Authorized representatives of the operator and the depository institution shall execute a document evidencing the letter of credit’s terms and conditions.

[19.15.8.11 NMAC - Rp, 19.15.3.101 NMAC, 12/1/2008; A, 6/30/2015]