2019 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES (BB)other forms approved by the commissioner. (ii)Submit an original signed copy and a duplicate of the surety bond to the commissioner. (B)Choose from one (I)of the following types of surety bonds: (i)A financial guarantee surety bond. (ii)A performance surety bond. (C)All surety bonds must contain the following: (i)The establishment of penal sums in the amount determined by subsection (b). (ii)Provision that the surety: (AA)will be liable to fUlfill the permittee’s closure obligations upon notice from the commissioner that the permittee has failed to do so;and (BB)may not cancel the bond without first sending notice of cancellation by certified mail to the permittee and the commissioner at least one hundred twenty (120)days before the effective date of the cancellation. (iii)Provision that the permittee may not terminate the bond without prior written authorization by the commissioner. (D)The permittee shall establish a standby trust fUnd to be utilized in the event the: (i)permittee fails to fUlfill closure obligations;and (ii)bond guarantee is exercised. The standby trust fUnd must be established in accordance with the requirements of subdivision (1).Under the terms of the bond,all payments made if the bond is utilized must be deposited by the surety directly into the standby trust fUnd in accordance with instructions from the commissioner. (E)The surety company issuing the bond must be: (i)among those listed as acceptable sureties for federal bonds in Circular 570 ofthe United States Department of the Treasury;and (ii)authorized to do business in Indiana. (F)The surety will not be liable for deficiencies in the performance of closure by the permittee after the commissioner releases the permittee in accordance with section 6 of this rule. (3)The letter-of-credit option,including the following: (A)The permittee may satis&the requirements of this section by doing as follows: (i)Establish a letter-of-credit on: (AA)forms provided by the commissioner;or (BB)other forms approved by the commissioner. (ii)Submit an original signed copy and a duplicate of the letter-of-credit to the commissioner. (B)All letters of credit must contain the following: (i)The establishment of credit in the amount determined by subsection (b). (ii)Irrevocability. (iii)An effective period of at least one (1)year and automatic extensions for periods of at least one (1)year unless the issuing institution provides written notification of cancellation by certified mail to both the permittee and the commissioner at least one hundred twenty (120)days before the effective date of cancellation. (iv)Provision that,upon written notice from the commissioner,the institution issuing the letter-of-credit will: (AA)state that the permittee’s obligations have not been fUlfilled;and (BB)deposit fUnds equal to the amount of the letter-of-credit into a standby trust fUnd to be used to ensure the permittee’s closure obligations are fUlfilled. (C)The permittee shall establish a standby trust fUnd to be utilized in the event the: (i)permittee fails to fUlfill its closure obligations;and (ii)letter-of-credit is utilized. The standby trust fUnds must be established in accordance with the requirements of subdivision (1).Under the terms ofthe letter-of-credit,all amounts paid pursuant to a commissioner’s request in the event the permittee fails to fUlfill its closure obligations must be deposited by the issuing institution directly into the standby trust fUnd in accordance Indiana Administrative Code Page 249