What is the Licensee Surety Program? This nationwide program brings to those in the radioisotope industry possessing Material Licenses a specifically crafted alternative with which to comply with the Financial Assurance, FA requirements associated with decommissioning.
There are several methods that Licensees can use to satisfy their FA funding needs. Of them, surety bonds offer many advantages over other methods and have been historically difficult to secure….up until now. Working with a select group of underwriters from one of the top five Sureties in the US, NRS has created a special facility dedicated to the needs of Material Licensees.
Especially, for those using Letters of Credit, LOC’s to satisfy their FA requirements, relief is here. There are many reasons to consider switching to an LSP Decommissioning Surety Bond. Here are a few:
- Removing the freeze on the assets pledged to your bank as collateral
- Removing the downward pressure on your lines of credit
- Removing the LOC reference in the notes section of your company’s balance sheet
- Removing the potential for year-to-year variations in the cost of the LOC
Depending upon the type of security you’ve pledged to your bank, purchasing an LSP Decommissioning Surety Bond can increase your company’s liquidity by releasing the hold on liquid assets.
Additionally, when replacing LOC’s, Surety Bonds have in general been defined as a form of credit enhancement. Unlike LOC’s that tend to diminish a company’s borrowing power, Surety Bonds do not.
The recent fluctuations in market conditions have, for many, equated to an untimely constriction in their ability to borrow. The fact that Surety Bonds are an off-balance sheet transaction eliminates any consideration for the aspect of contingent liability associated with an LOC.
Contact our staff to learn more about the LSP option and how it may deliver immediate benefits and increased future flexibility. You can also click on our FAQ tab for more information or click here. Or, if you are ready to apply for underwriting approval, go to our APPLICATIONS tab or click here. All of the state-manuscripted and NRC model bond forms are already pre-approved. Your company simply needs to be underwritten and once approved and premium is paid, NRS will issue the bond.
