Irrevocable Letter Of Credit Template (For Use With Coal Bonds) Page 2
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Company or its successor has neglected, failed, or refused to pay
such amount although requested to do so by the Director; OR
2.
A signed and dated statement from the Department of Interior, Office of Surface
Mining, Bond Approving Officer and the Director of the Colorado Division of
Reclamation, Mining and Safety in the following form: "The undersigned hereby
advise that the State-Federal Cooperative Agreement between the Governor of the State
of Colorado and the Secretary of the United States Department of the Interior has been
terminated
under
the
provisions
of
30 CFR
745.15,
and
the
operator,
, has failed to comply with the provisions of 30 CFR 740.15(b) and/or
30 CFR 800.11(a). The sight drafts which this statement accompanies have been signed
in behalf of the U.S. Office of Surface Mining Reclamation and Enforcement (OSM) in
the amount due to OSM to the extent that lands covered by the Federal lands program
are involved in Permit No.
and in behalf of the State of Colorado in an
amount due to the State of Colorado for the remaining permitted lands.
Each sight draft so drawn and presented shall be honored by us if presented prior to the close of
business on the expiration date of this letter of credit.
This credit refers to
Company's application for a permit to engage in mining and
reclamation activities within the State of Colorado.
It is an express condition of this letter of credit that it shall be automatically extended for
successive additional periods of one year each, from the initial and each future expiration date
unless the
Bank of
("the
Bank") shall notify the Director at least 90 days prior to an expiration date in writing by
registered mail, at the above address, that the Bank elects not to extend the credit for such
additional period. In such event, in addition to his power to draw here on under the preceding
paragraphs, the Director may draw the full or any lesser amount hereof at any time prior to such
expiration date by sight draft, or drafts, accompanied by the written statement of the Director
certifying that the amount drawn will be held as a cash deposit in lieu of financial warranty, as
provided in applicable Colorado statutes governing mined land and reclamation.
The original signed letter of credit will be presented to the Bank by the beneficiary along with
any draft presented pursuant to this letter of credit, and will be surrendered to the Bank with any
draft which draws the full amount, or the balance remaining available, under this letter of credit.
If any expiration date specified herein shall fall upon a day other than a regular business day of
the Bank, the expiration date shall ipso facto be extended to the close of business on the next
successive business day of the Bank.
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Parent category: Letters