Ala. Admin. Code r. 482-3-004-.08 - Use Of Letter Of Credit In Lieu Of Trusting
(1) A letter of credit may be used in lieu of
establishing and maintaining a merchandise and services trust. The letter of
credit, its form, and amount must be approved by the Commissioner prior to
use.
(2) The letter of credit must
be "evergreen," meaning it will not expire without an affirmative action by the
issuer of the letter of credit. The amount of the letter of credit shall be
determined in the same manner as indicated in Rule
482-3-004-.07 for the amount of
surety bonds.
Notes
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, ยงยง 27-2-17, 27-17A-1 to -57 (2014).
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