SECTION 810:25-11-14. Letter of credit requirements

(a)   An irrevocable letter of credit authorized pursuant to 810:25-11-6 or required pursuant to 810:25-11-13 must be issued by a state or national chartered bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The bank must be approved in advance by the Commission. The letter of credit must be on a form prescribed by the Commission, include an automatic renewal clause, and cannot be non-renewed without sixty (60) days' prior written notice to the Commission. The letter of credit shall be made payable to the Commission. The Commission may make demand and collect on the posted letter of credit in whole or in part, in the case of actual or imminent default of the association to pay compensation liabilities, or the cancellation of the letter of credit without an adequate replacement.

(b)   All letters of credit referenced in Subsection (a) of this Section, and any proceeds thereof collected upon demand, including any interest thereon, shall be maintained by the Commission as provided in the AWCA until each claim for workers' compensation benefits is paid, settled or lapses under the AWCA, and costs of administration of those claims are paid, or until otherwise released by the Commission.

[Source: Added at 31 Ok Reg 497, eff 2-4-14 (emergency); Added at 32 Ok Reg 1493, eff 8-27-15]