Or. Admin. R. 863-049-0050 - Letters of Credit

(1) For a certified, annually renewable letter of credit to be satisfactory to the Commissioner under ORS 696.527 in lieu of a surety bond or deposit, the letter of credit must:

(a) Be executed by a bank;

(b) Name the State of Oregon Real Estate Agency as beneficiary;

(c) Make no reference to any other conditional agreement, document, or entity;

(d) Be annually renewable, without amendment, for successive one-year periods from the stated expiration or any future expiration date until such time as notice is given in accordance with this section;

(e) Provide for no less than sixty (60) calendar days notice to the Agency as beneficiary of any election not to renew the letter of credit; and

(f) Be payable by sight draft or upon presentation at an office of the bank by an authorized representative of the beneficiary accompanied by a signed statement certifying that "The attached order from the Commissioner of the Oregon Real Estate Agency represents that the escrow agent is in violation of ORS 696.505-696.590."

(2) The Commissioner may require that a Letter of Credit include additional terms and conditions.

Notes

Or. Admin. R. 863-049-0050

REA 2-2004(Temp), f. & cert. ef. 1-15-04 thru 6-25-04; REA 4-2004, f. 4-28-04 cert. ef. 5-3-04; REA 10-2008, f. 12-15-08, cert. ef. 1-1-09; Renumbered from 863-050-0035 by REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 25-2018, minor correction filed 01/05/2018, effective 1/5/2018

Statutory/Other Authority: ORS 696.541

Statutes/Other Implemented: ORS 696.527