R315-309-7. Letter of Credit

  (1) The owner or operator of a solid waste facility may provide a letter of credit as a financial assurance mechanism. The letter of credit must be irrevocable and issued for a period of at least one year in the amount at least equal to the current cost estimate as required by Subsection R315-309-2(3) for closure and post-closure care or the cost estimate as required by Subsection R315-309-2(5) for corrective action, if necessary.

  (2) The institution issuing the letter of credit must be an entity which has the authority to issue a letter of credit and whose operations are regulated and examined by a Federal or state agency.

  (3) The letter of credit must be effective for closure and post-closure care:

  (a) for a new facility or a lateral expansion of an existing facility, before the initial receipt of waste;

  (b) for an existing facility, in accordance with the effective dates specified in Subsection R315-309-1(3)(a); and

  (c) for corrective action, in accordance with the schedule specified in Subsection R315-309-1(3)(b).

  (4) The letter of credit must provide that the expiration date will be automatically extended for a period of at least one year unless the issuing institution has elected not to extend the letter of credit by sending notice by certified mail to the owner or operator and the Director 120 days in advance of the expiration.

  (5) If the letter of credit is not extended by the issuing institution, the owner or operator shall obtain alternate financial assurance which will become effective on or before the expiration date.