Ala. Admin. Code r. 482-3-004-.08

Current through Register Vol. 43, No. 1, October 31, 2024

Section 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.

Adopted by Alabama Administrative Monthly Volume XXXIII, Issue No. 02, November 26, 2014, eff. 1/1/2015.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-17A-1 to -57 (2014).