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4. The Division presented the definition of "bank" as defined by Merriam - <br />Webster to be "an establishment for the custody, loan, exchange, or issue of money, <br />for the extension of credit, and for facilitating the transmission of funds." The <br />Division testified that Premier Farm Credit meets the definition of a "bank." <br />5. The Division supports the Operator's request to accept a letter of credit <br />issued by Premier Farm Credit for the financial warranty. <br />CONCLUSIONS OF LAW <br />6. The Board has jurisdiction over this matter pursuant to the Colorado <br />Land Reclamation Act for the Extraction of Construction Materials, Article 32.5 of <br />Title 34, C.R.S. (2014). <br />7. A financial warranty may consist of an irrevocable letter of credit, <br />subject to Board approval, if: (a) the letter of credit is "issued by a bank authorized <br />to do business in the United States;" and (b) the Board receives evidence that "the <br />bank issuing the Letter of Credit is in good financial standing and condition, as may <br />be evidenced by its rating by an appropriate rating system." Rule 4.3.4, Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the <br />Extraction of Construction Materials ("Rules"). Premier Farm Credit is authorized <br />to do business in the United States and has provided evidence that it is rated as <br />being in good financial standing and condition. <br />8. Under Rule 4.7, irrevocable letter of credit must be executed on <br />issuing bank's letterhead using the language provided by the Division, are <br />automatically renewable, and the issuing bank must provide a balance sheet <br />certified by certified public accountant demonstrating that the letter of credit does <br />not exceed ten percent (10%) of the bank's capital surplus accounts. Premier Farm <br />Credit provided a certified public accountant -verified balance sheet showing that <br />the letter of credit does not exceed ten percent (10%) of Premier Farm Credit's <br />capital surplus accounts. <br />9. Premier Farm Credit meets the qualifications of a "bank" for the <br />purposes of Rules 4.3.4 and 4.7. <br />ORDER <br />Based on the foregoing findings of fact and conclusions of law, the Board <br />accepts the financial warranty letter of credit from Premier Farm Credit. <br />Four X Ranch, Inc. <br />M-2014-033 2 <br />