51A-17-105. Documents issuer of letter of credit required to present prior to expiration of letter of credit.

The letter of credit referenced in subdivision 51A-17-102(4) shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit:

(1)    The original letter of credit, including any amendments; and

(2)    A written statement from the beneficiary stating that any of the following events have occurred:

(a)    The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 to 110 (January 1, 2024) for bankruptcy or reorganization;

(b)    The filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;

(c)    The seizure of assets of a licensee by a director pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or

(d)    The beneficiary has received notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with subdivision 51A-17-101(1) upon the expiration or non-extension of the letter of credit.

Source: SL 2024, ch 196, § 54.