5 Colo. Code Regs. § 1002-66-A
Wording for Irrevocable Standby Letter of Credit
A letter of credit must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:
Irrevocable Standby Letter of Credit
Director
Colorado Department of Public Health and Environment
Water Quality Control Division
4300 Cherry Creek Drive South
Denver, Colorado 80246-1530
Dear Sir or Madam:
We hereby establish our irrevocable standby letter of credit no. ______ in your favor, at the request and for the account of [permittee's or applicant's name and address] up to the aggregate amount of [in words] U.S. Dollars $ ______ , available upon presentation of:
(1) Your sight draft bearing reference to this letter of credit no. __________________ , and
(2) Your signed statement reading as follows: "I certify that the amount of the draft is payable for the purpose of performing closure, post-closure, and/or corrective action activities pursuant to section 61.13 of Regulation No. 61 ("Colorado Discharge Permit System Regulations" , 5 CCR 1002-61), as amended."
This letter of credit is effective as of [date] and shall expire on [date at least 1 year later], but such expiration date shall be automatically extended for a period of [at least 1 year] on [date] and on each successive expiration date, unless, at least 90 days before the current expiration date, we notify both you and [permittee's or applicant's name] by certified mail that we have decided not to extend this letter of credit beyond the current expiration date. In the event you are so notified, any unused portion of the credit shall be available upon presentation of your sight draft and your signed statement in accordance with the requirements herein, for 90 days after the date of receipt by both you and [permittee's or applicant's name], as shown on the signed return receipts.
Whenever this letter of credit is drawn on under and in compliance with the terms of this credit, we shall duly honor such draft upon presentation to us, and we shall deposit the specified amount of the draft directly into the standby trust fund of [permittee's or applicant's name], in accordance with your instructions, unless an alternate mechanism has been established by the State of Colorado to directly receive monies.
We hereby waive all rights of set off or liens against this letter of credit.
We certify that the wording of this letter of credit is identical to the wording specified in Water Quality Control Commission Regulation No. 66 (5 CCR 1002-66) as constituted on the date shown immediately below.
[Signature(s) and title(s) of official(s) of issuing institution]
[date]
This credit is subject to [insert "the most recent edition of the Uniform Customs and Practice for Documentary Credits, published by the International Chamber of Commerce," or "the Uniform Commercial Code"].
5 CCR 1002-66-A