(1) If a letter of credit issued under ORS 19.315 contains an expiration date, the letter of credit must also state an automatic renewal
period and contain a statement that the issuing bank will automatically renew the
letter of credit on the expiration date and at the end of each automatic renewal period
thereafter unless the bank has elected not to renew the letter in the manner provided
by subsection (2) of this section.
(2) A bank that issues a letter of credit may elect not to renew a letter of credit
by giving written notice to the following persons:
(a) To the party that files the letter of credit, at the address stated in the letter
of credit, or, if the attorney for the party is named in the letter of credit, to
the attorney at the address stated in the letter of credit.
(b) To the beneficiary, at the address stated in the letter of credit, or, if the
attorney for the beneficiary is named in the letter, to the attorney at the address
stated in the letter of credit.
(3) Notice of nonrenewal under subsection (2) of this section must be given by certified
mail. The notice must be mailed at least 60 days before the expiration date reflected on
the letter of credit or 60 days before the end of any subsequent automatic renewal
(4) If an issuing bank has given notice of nonrenewal under the provisions of this
section, the bank must pay to the trial court administrator who is holding the letter
of credit the amount stated in the letter of credit as the limit of the bank's liability
unless the beneficiary gives written notice to the bank that the letter of credit
has been released. A beneficiary shall promptly notify the issuing bank in writing if the court has entered
an order releasing the letter of credit.
(5) Any amount paid by an issuing bank to a trial court administrator under subsection
(4) of this section shall be treated as a deposit of money under ORS 22.020. Any amount that is not paid out to the beneficiary pursuant to the appellate judgment
shall be refunded to the bank making the deposit.
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