Irrevocable Letter Of Credit Template (Page 3 of 3) in pdf

Irrevocable Letter Of Credit Template Page 3

(d) Letter of Credit.

1. A bond in the form of an irrevocable letter of credit shall be an

agreement, between a financial institution and a home improvement

contractor on record at the Board wherein the FDIC insured financial

institution agrees to extend an irrevocable line of credit amounting to ten

thousand dollars ($10,000.00), for the purpose of honoring claims filed

with the Board.

2. The irrevocable letter of credit shall show the name of the financial

institution extending the credit and the name of the applicant or home

improvement contractor to whom the letter of credit was issued as it

appears on the applicant’s or home improvement contractor’s license

application.

(3) Release of Bond.

A bond may not be released until whichever occurs last:

(a) One (1) year after the inactivation, expiration or revocation of home improvement

contractor’s license;

(b) After the pending claims against the licensee filed during the period described in

3(a) have been heard and satisfied, or dismissed.

RESOURCES

Rule updates are available online at:

(Home Improvement Section is under 06807

The law may be reviewed at:

(Home Improvement section is under Title 62, Chapter 6, Section 5 (T.C.A. § 626501)

More information is also available at the Boards website at:

Irrevocable Letter Of Credit Template Page 3