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Jr1~J i~ 0.' 1_.!c IL~..J f91N~r X41 .~i RC'_ L 1GL i.'~rk7_J -b_k:c <br />A 7~J rG-: <br />-3- <br />• (e) The Division vi ti not accept letters of credit from a bank for <br />any person, on alt permits held by that person, in excess of 30 percent of the <br />bank's capital surplus account as shown on a balance sheet certified by a <br />Certified Public Accountant. <br />(f) The letter shall provide that: <br />(I) The bank will give prompt notice to the principal and the <br />Division of any notice received or action filed alleging the insolvency or <br />bankruptcy of the bank, or alleging any violations of regulatory requirements <br />wntch could result in suspension or revocation of the bank's charter or <br />license to do business; <br />(11) In the event the bank becomes unable to futf111 Its <br />obligations under the letter of credit for any reason, notice shall be given <br />immediately to the principal and the Division; and <br />(111) Upon the incapacity of a bank by reason of bankruptcy, <br />Insolvency or s~spenslon or revocation of its charter or License, the <br />principal shall be deemed to be without performance bond coverage in violation <br />of the law, <br />(Z) The letter of credit shall be automatically renewed until released <br />1n writing by the Board or Division in accordance with applicable laws. It is <br />understood that periods of years may necessarily be required before <br />• determination can be made that reclamation work has been satisfactorily <br />Completed. It is recognized that, as reclamation 1s accomplished, the amount <br />of this bond and the Cet*.er of Credit may be reduced with the approval of the <br />Board or the Division and the 05MRE so that it reflects the then currently <br />estimated cost of the remaining reclamation required under the Plan and the <br />Permit and by applicable laws and regulations of the State. No reviston, <br />extension, or renewal of the Permit or of the time allowed to complete <br />reclamation shalt diminish the Principal's obligation hereunder or the Bank's <br />obligation under its Letter of Credit. <br />(3> The Board or the Division shall review this bond from time to time, <br />and with the knowledge of the iJSMRE, may require an increase 1n the principal <br />amount of this bond <and a correspcnding increase 1n the Surety amount) to <br />cover increases 1n the estimated costs of reclamation, but no such increase <br />shalt bins the Bank unless and until it shall have consented thereto in <br />writing by the issuance of an additional Letter of Credit or by a substitute <br />Letter of Credit in the increased amount. <br />(4) With the prior consent of the Board or the Division, which consent <br />Shall not be unreasonably wltnheld, the Principal may, from time to time, <br />change the Bank whose Letter of Credit 1s he id by the State as Surety, or <br />alter the form of Surety or assurance of financial responsibility held by the <br />State for the faithful performance by the Principal of its abllgatfons <br />hereunder, provided that, at all times, there shalt be to existence and <br />delivered to the State Such Surety or other evidence of financial <br />responsibility as shall be required by applicable laws and regulations of the <br />• State and as shall, in form and suhstance, be approved by the Board or the <br />Division. <br />