Section 329IAC15-5-11. Negotiable letter of credit

   (a) A waste tire transporter may comply with this rule by establishing a negotiable letter of credit on:

(1) forms provided by the department; or

(2) forms approved by the department.

  (b) All negotiable letters of credit must contain the following:

(1) The establishment of credit in the amount of not less than ten thousand dollars ($10,000).

(2) Irrevocability.

(3) An effective period of at least one (1) year and automatic extensions thereafter for periods of at least one (1) year unless the issuing institution provides written notification of cancellation by certified mail to both the waste tire transporter and the department at least one hundred twenty (120) days before the effective date of cancellation.

(4) Provision that the institution will deposit funds equal to the amount of credit into the waste tire management fund established by IC 13-20-13-8 to be used to ensure that all obligations of the waste tire transporter under this article are fulfilled, if notified in writing by the commissioner that the obligations of the waste tire transporter have not been fulfilled.

  (c) The waste tire transporter shall establish a standby trust fund to be utilized in the event the waste tire transporter fails to fulfill all obligations under this article and the letter of credit is utilized. Such a trust fund must be established in accordance with the requirements of section 5 of this rule.

  (d) The issuing institution must be an entity that has the authority to issue letters of credit and whose letters of credit operations are regulated and examined by a federal agency or an agency or department of the state. (Solid Waste Management Division; 329 IAC 15-5-11; filed Oct 10, 2000, 3:10 p.m.: 24 IR 333; readopted filed Nov 30, 2006, 4:16 p.m.: 20061227-IR-329050168FRA; readopted filed Jul 18, 2012, 2:26 p.m.: 20120815-IR-329120206BFA)