Letter of Credit Instructions
- Deviations from the approved language are not permitted.
- Expiration dates are not permitted because there is an “evergreen” clause stated in Provision 1.
- In order to be acceptable, a letter of credit must be issued by a Georgia depository. If the letter of credit is not issued by a Georgia depository, it must be confirmed by a Georgia depository.
- It must be stated that the Georgia Self-Insurers Guaranty Trust Fund can present drafts and documents at a location in Georgia.
- All companies covered by a company’s self-insurance must be named as “applicants” on the letter of credit. All companies covered by a company’s self-insurance program must be named on the form. If the parent company and its subsidiaries/affiliates are self-insured under the parent’s name, it is required that the language “and self-insured subsidiaries and affiliates, if any” be placed after the parent company’s name in the “Name of Applicant” section. It is no longer permissible to list individual subsidiaries and affiliates.
- The “Issuance Date” should be the date the bank issued the letter of credit.
- The amount of the letter of credit should be the amount required by the State Board of Workers’ Compensation which was stated on an Order of the State Board.
- Revisions to a letter of credit presently on file can be done by using an amendment.
