Laserfiche WebLink
• 6. Federal Law also requires the Debtor to <br />guarantee by posting security that the reclamation work at the <br />Reclamation Site will be performed. Pursuant to a reclamation <br />election available to the Debtor under 30 CFR § 800.5(b), the <br />Debtor chose to execute a collateral bond and indemnity agreement <br />in the amount of $822,000 (the "Bond") to fulfill its statutory <br />requirements. A copy of the Bond is attached hereto as Exhibit <br />A. <br />7. Contemporaneously with the execution and <br />delivery of the Bond, the Debtor provided OSMRE with a letter of <br />credit as required by 30 CFR § 800.5(b) et sue. in the total <br />amount of $822,000 as collateral for the Bond and for the <br />Debtor's reclamation duties. <br />e. The letter of credit was originally purchased by <br />the Debtor from United Bank of Sunset Park in favor of the OSMRE. <br />The Debtor was obligated to reimburse United Bank of Sunset Park <br />for any payment the bank might make under the letter of credit. <br />The Debtor's obligation under the letter of credit was evidenced <br />by a promissory note in the face amount of $822,000 payable to <br />United Hank of Sunset Park. Furthermore, pursuant to a general <br />security agreement between the Debtor and United Bank of Sunset <br />Park, the Debtor posted a certificate of deposit as security for <br />its potential obligation. In the event the OSMRE obtained <br />payment under the letter of credit, United Bank of Sunset Park <br />would make claim against the promissory note with ultimate <br />3 <br />