Standby LCs and Hard Rock Mining

28371516 - mining cart in silver, gold, copper mine

What do the two have to do with one another? 

On 12 January 2016 the IIBLP accepted an invitation to attend a meeting with the U.S. Environmental Protection Agency (EPA) to discuss the use of letters of credit as a means of financial responsibility for hard rock mining under the section 108(b) of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA).

In response to this meeting, the IIBLP drafted a model standby letter of credit form drawing on the ISP98 Model Form 11.1 and existing EPA model forms. The intent of this form is to ensure a smooth transaction between the governmental agency and financial institutions.

At the upcoming Standby & Guarantee Forum in New York, panelists will use this example to discuss the potential problems bankers face when dealing with required government standby forms that may not meet their institution’s usual standards, as well as other difficulties encountered when dealing with government agencies. Panelists will offer potential solutions for bankers and lawyers in dealing with these oftentimes tricky arrangements.

 

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