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Can you summarize FLREG Chapter 14-116?
Departmental > LETTERS OF CREDIT
Short Summary
The provided legal document content establishes the requirements for the approval of letters of credit. These letters of credit are provided by banks or savings associations at the request of applicants, professional service providers, or contractors. The letter of credit must be issued by a bank or savings association organized and existing under the laws of Florida or the United States, with a branch office authorized to receive deposits in Florida. Additionally, the bank or savings association must maintain an average financial condition ranking of 35 or more. If the required financial condition is not maintained, a substitute letter of credit meeting the requirements must be provided within 30 days of notification. The letter of credit must be issued solely for the benefit of the Department of Transportation and must include specific language regarding its expiration date and extension. If the letter of credit is not extended, the Department may draw down any remaining balance unless a substitute letter of credit is provided. The letter of credit must allow draws to be made on a bank or savings association in the United States and must also allow for electronic presentation of a draft via facsimile transmission or electronic mail. This rule is implemented under Florida law and has been amended multiple times since its inception.
Whom does it apply to?
Applicants, professional service providers, or contractors requesting letters of credit
What does it govern?
Requirements for the approval of letters of credit provided by banks or savings associations at the request of applicants, professional service providers, or contractors
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Florida