(5) The letter of credit must state whether it is subject to and governed by the Laws of the State of New York or the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication 290), and all drafts drawn thereunder must be presentable at a bank office in the United States. In addition, the "evergreen clause" should allow for a period of no less than 30 days notice prior to expiry date for non-renewal. (4) The term of the letter of credit must be for at least one year and must contain an "evergreen clause", which prevents the expiration of the letter of credit without due notice from the issuer. (3) The letter of credit must contain a statement to the effect that the obligation of the bank under the letter of credit is in no way contingent upon reimbursement with respect thereto. The boxed section must be clearly marked to indicate that such information is for internal identification purposes only and does not affect the terms of the letter of credit or the bank's obligations thereunder. (2) The heading of the letter of credit may include a boxed section which contains the name of the applicant and other appropriate notations to provide a reference for such letter of credit. In addition, the letter of credit itself cannot contain references to any other agreements, documents or entities. The letter of credit must also indicate that it is not subject to any conditions or qualifications outside of the letter of credit. By "clean" and unconditional, it is meant that the letter of credit stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds and that no other document need be presented. (1) The letter of credit must be "clean", irrevocable and unconditional. The Department has recently reviewed the various conditions it has required in connection with the use of letters of credit and by means of this Circular Letter advises all licensed insurers that the Department will not find letters of credit to be acceptable unless they meet the following conditions:
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