N.J. Admin. Code § 7:7-17.19

Current through Register Vol. 56, No. 17, September 3, 2024

Section 7:7-17.19 - Financial assurance; line of credit requirements

(a) A person who chooses to establish a line of credit agreement as financial assurance pursuant to this subchapter shall submit to the Department the original line of credit. The line of credit shall:

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 any applicable Department file number, and the name, street address, lot, block, municipality, and county of the mitigation site;

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

4. Specify 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 that decision at least 120 calendar days before the current expiration date, beginning from the date of receipt by the Department as shown on the signed return receipt;

5. Specify that the lender shall disburse only those funds that the Department approves in writing;

6. Specify that the funds in the line of credit shall be utilized solely for the purposes of conducting the mitigation project or bank; and

7. Specify that the Department may access the line of credit to pay for the cost of the mitigation project or bank, pursuant to 7:7-17.17(l).

(b) A person responsible for conducting a mitigation project or bank who uses a line of credit to satisfy the requirements of this subchapter shall annually, at least 30 calendar days prior to the anniversary date of when that person was obligated to establish a 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 Department has approved and confirming that the lender has renewed the line of credit for the next consecutive 12-month period.

N.J. Admin. Code § 7:7-17.19

Adopted by 47 N.J.R. 1392(a), effective 7/6/2015