IRREVOCABLE STANDBY LETTER OF CREDIT LETTER OF CREDIT

irrevocable standby letter of credit ==================================== letter of credit no.: effective date: amount: iss

IRREVOCABLE STANDBY LETTER OF CREDIT
====================================
LETTER OF CREDIT NO.:
EFFECTIVE DATE:
AMOUNT:
ISSUING INSTITUTION:
Name
Address
City State Zip Code
County
BENEFICIARY:
State of North Carolina
Department of Environmental Quality
1612 Mail Service Center
Raleigh, North Carolina 27699-1612
APPLICANT/OPERATOR:
Name
Address
City State Zip Code
County
Dear Sir or Madam:
(1) The APPLICANT/OPERATOR desires to engage in mining operations
within the State of North Carolina, under the provisions of the Mining
Act of 1971, N.C. General Statute 74-46, et seq., and the
administrative rules promulgated there under.
(2) N.C. General Statute 74-50 requires that operators engaged in
mining shall first obtain an operating permit from the N. C.
Department of Environmental Quality ("DEQ") which covers the affected
land and which has not terminated, been revoked, been suspended for
the period in question, or otherwise become invalid. N.C. General
Statute 74-54 requires that each applicant for an operating permit,
or for the renewal thereof, shall file with DEQ, and shall thereafter
maintain in force, a bond in favor of the State of North Carolina in
an amount as prescribed by Title 15A N.C. Administrative Code
Subchapter 5B. 0003. N.C. General Statute 74-54 further provides that
in lieu of the surety bond, an applicant or operator may file with DEQ
a cash deposit, negotiable securities, or an assignment of a savings
account in a North Carolina bank.
(3) Thus, this IRREVOCABLE STANDBY LETTER OF CREDIT is issued to DEQ,
in lieu of the surety bond required to be filed by the
APPLICANT/OPERATOR, as provided by N.C. General Statute 74-54.
(4) The undersigned hereby establishes its IRREVOCABLE STANDBY LETTER
OF CREDIT in favor of DEQ, for the account of:
(APPLICANT/OPERATOR)
for the amount of dollars and no
100's ($ ), available by DEQ's draft(s) drawn on sight.
(5) This IRREVOCABLE STANDBY LETTER OF CREDIT shall expire
on .
(date at least one (1) year from effective date)
The expiration date shall be extended automatically for a period
of on and
(one year or more) (expiration date)
on each successive expiration date, unless, at least sixty (60) days
prior to the expiration date, the undersigned notifies DEQ and the
OPERATOR by certified mail, return receipt requested that the
undersigned will not extend this letter of credit beyond the current
expiration date. If the undersigned notifies DEQ that this letter of
credit will not be extended, any unused portion of the credit shall be
available upon presentation of DEQ's sight draft within sixty (60)
days after DEQ's or the OPERATOR'S receipt of such notification,
whichever is later.
(6) This IRREVOCABLE STANDBY LETTER OF CREDIT is non-transferable.
(7) Draft(s) shall be marked "Drawn Under
Credit No. "
(Issuing Institution)
and shall include the following documentation:
(a) A signed certificate by DEQ, referring to the effective date and
Number of this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"In accordance with N. C. Gen. Stat. 74-59, we have received a notice
of forfeiture of part or all of the Bond Amount. The amount of our
drawing does not exceed the amount of the forfeiture as set forth in
such notice.";
-or-
(b) A signed certificate by DEQ, referring to the effective date and
Number of this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"We have received from (Issuing Institution)
written notice stating (1) that this IRREVOCABLE STANDBY LETTER OF
CREDIT has not been renewed; and, (2) that the amount of our drawing
does not exceed the Bond Amount, less any previous forfeitures
thereunder, pursuant to notices received in accordance with N.C.
General Statute 74-59.";
-or-
(c) A signed certificate by DEQ, referring to the effective date and
Number of this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"We have received from (Issuing Institution)
written notice stating (1) that there exists an Event of Default under
the Credit Agreement (as defined in the IRREVOCABLE STANDBY LETTER OF
CREDIT); (2) that a drawing should be made under this IRREVOCABLE
STANDBY LETTER OF CREDIT; and, (3) that the amount of the drawing does
not exceed the bond amount, less any previous forfeitures there under,
pursuant to notices received in accordance with N.C. General Statute
74-59."
(8) This IRREVOCABLE STANDBY LETTER OF CREDIT is subject to the
Uniform Customs and Practice for Documentary Credits (2007 Revision),
International Chamber of Commerce Publication No. 600 and the laws of
the State of North Carolina. In the event of any conflict, the laws of
the State of North Carolina will control.
(9) hereby agrees
(Issuing Institution)
with the drawers, endorsers, and bona fide holders that all drafts
drawn under and in compliance with the terms of this IRREVOCABLE
STANDBY LETTER OF CREDIT will be duly honored upon presentation to
this bank/issuing institution.
Very truly yours,
(Issuing Institution)
BY:
TITLE:
DATE:
Sworn and subscribed to before me this
the day of , 20 .
Notary Public
My Commission Expires: (Seal)
Date
**PLEASE MAIL THIS FORM TO:
LAND QUALITY SECTION, 1612 Mail Service Center, Raleigh, NC 27699-1612
Rev. February 2018 Page 1