Irrevocable Letter Of Credit Template (For Use With Coal Bonds) (Page 3 of 3) in pdf

Irrevocable Letter Of Credit Template (For Use With Coal Bonds) Page 3

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The bank will give prompt notice to the permittee and the Division of any notice received or

action filed alleging the insolvency or bankruptcy of the bank, or alleging any violations of

regulatory requirements which could result in the suspension or revocation of the bank's charter

or license to do business.

In the event the bank becomes unable to fulfill its obligations under the Letter of Credit for any

reason, notice shall be given immediately to the permittee and the Division.

The

Bank of

Authorized signature

NOTES:

The Letter of Credit must not be in excess of 10 percent of the bank's capital

surplus account or in excess of 30 percent if the applicant has more than one Letter

of Credit for different permits. To demonstrate this requirement, the issuing bank

should provide a balance sheet certified by a Certified Public Accountant.

Generally, this is available in the Bank's Annual Report.

The Letter of Credit should be submitted on the Bank's letterhead.

The letter may be issued by a bank organized or authorized to do business in the

U.S. and located in the state of Colorado, except that the bank need not be located in

the state of Colorado if the letter of credit can be exercised at an affiliate or subsidiary

located in the state of Colorado, or is confirmed by a bank located in the state of

Colorado.

(Rev. 1/01)

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Irrevocable Letter Of Credit Template (For Use With Coal Bonds) Page 3