SURETY BONDS AND LETTERS OF CREDIT
§ 36.451. Requirements for surety bond or letter of credit.
(a) A registrant shall maintain a surety bond or letter of credit in the form and amount prescribed in this subchapter.
(b) A surety bond must be in the amount prescribed in § 36.452(a) (relating to amount of surety bond or letter of credit), in the form prescribed by § 36.453 (relating to form of surety bond) and issued by a company authorized to transact surety business in this Commonwealth by the Insurance Department.
(c) A letter of credit must be in the amount prescribed in § 36.452(b), in the form prescribed by § 36.454 (relating to form of letter of credit) and payable at an office of a commercial bank in the United States. At the time of issuance of the letter of credit, the issuing bank or its holding company shall have a B/C or better rating or 2.5 or better credit evaluation score by Fitch Ratings, as successor to the rating services of Thomson BankWatch, or the issuing bank shall have a CD or long-term issuer credit rating of BBB or better or a short-term issuer credit rating of A-2 or better by Standard & Poor’s or a comparable rating by another NRSRO.
Cross References This section cited in 49 Pa. Code § 36.404 (relating to content of application); 49 Pa. Code § 36.422 (relating to early termination of registration); 49 Pa. Code § 36.452 (relating to amount of surety bond or letter of credit); and 49 Pa. Code § 36.455 (relating to maintenance of surety bond or letter of credit).
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