Irrevocable Letter Of Credit {8B}

South Carolina Workers' Compensation Commission SELF-INSURANCE DIVISION 1333 Main Street, Suite 500 P.O. BOX 1715 Columbia, SC 29202-1715 (803) 737-5704 Page One of Three Information: Irrevocable Letters of Credit The South Carolina Workers' Compensation Commission may accept an irrevocable letter of credit as proof of compliance instead of a surety bond or securities. The Commission's Self-Insurance Division must determine if the letter of credit is acceptable in format and content, and if the issuing and/or confirming bank is acceptable. The letter of credit must be substantially the format and content as that provided in Form 8B: Irrevocable Letter of Credit, which follows these instructions. The Employer must complete the Memorandum of Understanding between the Commission and the Employer and submit it with the Irrevocable Letter of Credit (Form 8B). The letter of credit must be issued or confirmed by a bank chartered in South Carolina or a federally-chartered bank with a branch office in this state from which funds will be immediately payable on demand. The Irrevocable Letter of Credit must include the following: Name of Bank Issuing Office Address, City, State, Zip Irrevocable Letter of Credit Number Effective Date Date and Place of Expiry Amount (In U.S. Dollars) Applicant (Name of Self-Insurer) Address, City, State, Zip Beneficiary: South Carolina Workers' Compensation Commission 1333 Main Street, Suite 500 Post Office Box 1715 Columbia, South Carolina 29202-1715 Confirming Bank (If Applicable) Address, City, State, Zip Credit available with (Name of Bank) by sight draft at (Branch of Bank). Requirements The expiration date of this Letter of Credit will be automatically extended without amendment for an additional period of one year from the present or each future expiration date unless not less than sixty (60) days prior to such date the bank notifies the Commission in writing that the bank elects not to renew the letter of credit. It is further condition of the letter of credit that any interruption of the bank's conduct of business within thirty days of the expiry date caused an act of God, riot, civil commotion, insurrection, war or other cause beyond the bank's control, or by any strike or lockout, will automatically extend the expiry date hereof, as well as future expiry dates, by the period of the interruption beginning on the first day after the interruption on which the bank is open. The Irrevocable Letter of Credit is not subject to any condition or qualification, and is the bank's individual obligation which is in no way contingent upon reimbursement. This letter of credit shall be governed by the laws of South Carolina and subject to the Uniform Customs & Practice for Documentary Credits, 1993 Revision, ICC Publication Number 600. If any legal proceedings are initiated with respect to payment of the letter of credit it is agreed that such proceedings shall be subject to South Carolina courts and law. See R. 67-1516 for further information. Attach this form to the Memorandum of Understanding and file with the Self-Insurance Division of the Commission within sixty days of the Commission's contingent approval of the application to self-insure. See R. 67-1501 through R. 67-1516 for further information. WCC Form # 8B Rev. 10/2014 8B Irrevocable Letter of Credit American LegalNet, Inc. www.FormsWorkFlow.com Irrevocable Letter of Credit Name of Self-Insurer: ______________________________________________________________________________________ Irrevocable Letter of Credit Number: __________________________________________________________________________ Date: ______________________ South Carolina Workers' Compensation Commission Self-Insurance Administrator 1333 Main Street, Suite 500 Post Office Box 1715 Columbia, South Carolina 29202-1715 Dear Sir or Madame: We have established this Irrevocable Letter of Credit solely in your favor for drawings up to U.S. $_______________ effective _______________ and expiring at our ____________________________________________ (bank address) with our close of business on _______________. We hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Letter of Credit Number ____________, for all or any part of this Letter of Credit if presented at ___________________________________________ (bank address) on or before the expiry date or any automatically extended date. Except as stated herein, this understanding is not subject to any condition or qualification. The obligation of the Bank, in no way contingent upon reimbursement with any respect thereto. It is a condition of this Letter of Credit that it shall be deemed automatically extended without amendment for one year from the expiry date hereof, or any future expiry date, unless sixty (60) days prior to any expiry date we shall notify you in writing that we elect not to consider this Letter of Credit renewed for any such additional period. It is further condition of this Letter of Credit that any interruption of the Bank's conduct of business within thirty days of the expiry date caused an act of God, riot, civil commotion, insurrection, war or other causes beyond the Bank's control, or by any strike or lockout, will automatically extend the expiry date hereof, as well as future expiry dates, by the period of the interruption beginning on the first day after the interruption on which the bank is open. This letter shall be governed by the laws of South Carolina and subject to the Uniform Customs & Practice for Documentary Credits, 1993 Revision, ICC Publication Number 600. If any legal proceedings are initiated with respect to payment of this Letter of Credit, it is agreed that such proceedings shall be subject to South Carolina courts and law. Bank: Address: Authorized Signature: Title: American LegalNet, Inc. www.FormsWorkFlow.com Memorandum of Understanding This is a Memorandum of Understanding between _____________________________________________ (Employer) and the South Carolina Workers' Compensation Commission (Commission). The Employer has applied for the privilege of self-insuring its obligations under the South Carolina Workers' Compensation Law, and the Commission has approved the application contingent upon the Employer posting security in the amount of $_______________. The Employer wishes to meet this security requirement by posting an Irrevocable Letter of Credit (Letter of Credit) issued or confirmed by _______________________________ (