Fillable Irrevocable Letter Of Credit Form - Nm Bank

New Mexico State Land Office – Oil, Gas, and Minerals Division

IRREVOCABLE LETTER OF CREDIT -- NEW MEXICO BANK

ONLINE VERSION

_____________________

Date

Commissioner of Public Land

Letter of Credit Number ________________________

New Mexico State Land Office

Oil, Gas, & Minerals Division

Initial Expiration Date _________________________

Post Office Box 1148

Santa Fe, New Mexico 87504-1148

On behalf of ________________________________________________________(lessee/operator name)

(Address)___________________________________________________________________ “OBLIGOR”

We, ________________________________________________________________________ (bank name)

(Address) _____________________________________________________________________ “BANK”

issue this irrevocable Letter of Credit (LOC) for the full amount of $___________________ for the benefit of the

New Mexico Commissioner of Public Lands (Commissioner). By this LOC, we agree that, immediately upon

receipt of written demand from the Commissioner for all or a portion of the credit granted by this LOC, we will

pay the sum or sums demanded to the Commissioner or as directed by him. This irrevocable LOC is made and

issued pursuant to the Uniform Commercial Code, and is accepted in lieu of the bond requirements set out in New

Mexico State Land Office Rule 100.23_______. (Indicate section: A, B, or C)

term: This LOC becomes effective on ________________________________ (date), and shall remain in effect for exactly

one year after that date.

renewal: At least 90 days prior to the expiration of any one-year term of this LOC, the Commissioner must receive written

notice by registered mail or by courier service from the Bank that it intends not to renew this LOC; and in the absence of such

notice, this LOC shall automatically be renewed, extended, or fully replaced without amendment with an identical LOC for

another one-year term.

Upon receipt of notice of non-renewal from the Bank, the Commissioner may, before expiration of the term of this

LOC, draw upon the Bank up to the amount of this LOC, provided that such draft is accompanied by a statement of the

Commissioner on his letterhead that the Obligor has, at that time, failed to provide a satisfactory replacement bond.

documentary requirements: This LOC may be drawn upon by the Commissioner in whole or in part at any time during its

term to secure payment for surface improvement damages and performance under the lease as described in New Mexico State

Land Office Rule 100.23 ____ (Section: A,B, or C). Any such drawing by the Commissioner shall be effected by a demand

letter from the Commissioner on his letterhead stating that the Obligor has defaulted and that the amount demanded is in

partial or full satisfaction of that default.

Drawing may be effected personally, by courier service, or by facsimile. If drawing is being effected by facsimile,

the Commissioner’s demand letter will be accepted in lieu of an original, provided the letter is immediately preceded or

followed by a confirming call from the Commissioner or his designated agent, and provided that the facsimile copy bears

either a header or a transmittal page identifying the source as the New Mexico State Land Office. Facsimile presentment must

be made to the following number : _______________________.

adjustments: No partial draft by the Commissioner against this LOC shall extinguish the Bank's obligation to pay any

remaining balance upon demand properly made. The outstanding obligation of this LOC shall be reduced by any partial drafts

against the credit, provided that the Bank shall promptly notify the Commissioner in writing of the post-draft balance

following any such draft and consequent adjustments.

surrender: If, upon demand by the Commissioner, the Bank tenders the full amount represented by this LOC as properly

adjusted, the Commissioner shall, upon the request of the Bank, surrender this original LOC and all written adjustments and

amendments to the Bank. Similarly, the Commissioner shall surrender this original LOC and all proper, written adjustments

upon request at the expiration of this LOC. The Bank otherwise guarantees that the amount represented by this LOC shall in

no way be reduced during the original or any subsequent term without the Commissioner’s written approval.

Revised for Web – October 2004 – New Mexico Bank

Irrevocable Letter Of Credit Form - Nm Bank - 2004

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