NAC485.090. Security: Acceptable forms.

The Department may accept as security:

     1. A time certificate of deposit with a bank chartered by this State or a bank that is a member of the United States Federal Reserve System which is made payable to the self-insurer and the Department.

     2. A surety bond which is issued by a company authorized and licensed to transact the business of surety insurance in this State and which is countersigned by a resident agent licensed in this State.

     3. Cash.

     4. A letter of credit that:

     (a) Includes a clause stating that no document other than a demand for payment under the terms of the letter is necessary for payment;

     (b) Is irrevocable;

     (c) Does not expire unless written notice is given by the issuer to the Department not less than 30 days before the date of expiration;

     (d) Is issued by a bank that:

          (1) Is chartered by this State or is a member of the United States Federal Reserve System; and

          (2) Has been approved by the Department;

     (e) Includes a clause stating that the letter of credit is not subject to any condition or qualification that is not specified in the letter of credit;

     (f) Although it may be the individual obligation of the issuer, is not contingent on the ability of the issuer to perfect any lien or security interest;

     (g) Does not contain any reference to another agreement, agency, document or person;

     (h) Includes a clause stating that the obligation of the issuer under the letter of credit is not contingent on reimbursement; and

     (i) If the letter of credit includes a boxed section in the heading that sets forth the name of the applicant and other appropriate notations, is clearly marked in the boxed section to indicate that the information set forth therein is for internal identification only and does not affect the terms of the letter of credit or the obligations of the issuer.

     5. Other forms of security which are acceptable to the Department.

     [Dep’t of Motor Veh., Self-insurance Reg. §§ VII-X, eff. 4-29-82]—(NAC A by R162-01, 2-12-2002; R164-03, 10-31-2005)