§550.1490. What standards must my BOEM-specified surety instrument meet?
30 C.F.R. § 550.1490
A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BOEM will give you written information and standard forms for BOEM-specified surety instrument requirements.
BOEM will use a bank-rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument adequate to indemnify the lessor from loss or damage.
Administrative appeal bonds must be issued by a qualified surety company which the Department of the Treasury has approved.
Irrevocable letters of credit or certificates of deposit must be from a financial institution acceptable to BOEM with a minimum 1-year period of coverage subject to automatic renewal up to 5 years.
Notes, amendments, and revision history
Authority
Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.
Source
Source: 76 FR 64623, Oct. 18, 2011, unless otherwise noted.