N.J. Admin. Code § 7:26C-5.6

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:26C-5.6 - Line of credit requirements

(a) Any person who chooses to establish a line of credit as a remediation funding source or financial assurance pursuant to this chapter shall submit to the Department an original of a line of credit. The line of credit must:

1. Be issued by an entity that is licensed by the New Jersey Department of Banking and Insurance to transact business in the State of New Jersey, or by a Federally regulated bank;

2. Include the applicable case number, the program interest name, program interest number (preferred ID), site name, and site address;

3. Specify that the line of credit shall be issued for a period of one year, and shall be automatically extended for a period of at least one year;

4. Indicate that, if the issuer of the line of credit decides not to extend the line of credit beyond the then current expiration date, the issuer shall notify the person using the line of credit and the Department by certified mail of a decision not at least 120 days before the current expiration date beginning from the date of receipt by the Department as shown on the signed return receipt;

5. Indicate that the person providing the line of credit shall only disburse those funds from the line of credit that the licensed site remediation professional approves in writing to be disbursed pursuant to N.J.A.C. 7:26C- 5.12;

6. Indicate that the funds in the line of credit shall be utilized solely for the purposes of conducting the remediation; and

7. Specify that the Department, or another party that may subsequently be designated by the Department pursuant to 7:26C-5.13(d), may access the line of credit to pay for the cost of remediation.

(b) Any person responsible for conducting the remediation using a line of credit to satisfy the requirements of this subchapter shall annually, at least 30 days prior to the anniversary date of when that person was obligated to establish a remediation funding or financial assurance, submit to the Department a written statement from the lender confirming the value of the line of credit in an amount that the licensed site remediation professional has certified, and confirming that the lender has renewed the line of credit for the next consecutive 12-month period.

N.J. Admin. Code § 7:26C-5.6

Amended by R.2012 d.095, effective 5/7/2012.
See: 43 N.J.R. 1935(a), 44 N.J.R. 1339(b).
In the introductory paragraph of (a) and in (b), inserted "or financial assurance"; in the introductory paragraph of (a), deleted "agreement" following the first occurrence of "credit"; in (a)5, deleted "Department or" preceding "licensed"; and in (b), deleted "Department has approved or a" preceding "licensed".