(a) To be an eligible security under subdivision (p) of Section 53651, a letter of credit shall be in such form and shall contain such provisions as the administrator may prescribe, and shall include all of the following terms:
(1) The administrator shall be the beneficiary of the letter of credit.
(2) The letter of credit shall be clean and irrevocable and shall provide that the administrator may draw upon it up to the total amount in the event of the failure of the depository saving association or federal association or if the depository saving association or federal association refuses to permit the withdrawal of funds by a treasurer.
(Added by Stats. 1986, Ch. 1132, Sec. 17.)