2014 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES (E) The surety company issuing the bond must be: (i) among those listed as acceptable sureties for federal bonds in Circular 570 of the 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 satisfy 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 of the fetter -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 with instructions from the commissioner. (D) The issuing institution must be an entity: (i) that has the authority to issue letters of credit; and (ii) whose letters of credit operations are regulated and examined by a federal or Indiana agency. (4) The insurance option, including the following: (A) The permittee may satisfy the requirements of this section by doing as follows: (i) Provide evidence of insurance on: (AA) forms provided by the commissioner; or (BB) other forms approved by the commissioner. (ii) Submit a certificate of closure insurance to the commissioner. (B) All insurance must include the following requirements: (i) Be in the amount determined by subsection (b). (ii) Provide that, upon written notification to the insurer by the commissioner that the permittee has failed to perform final closure, the insurer shall make payments: (AA) in any amount, not to exceed the amount insured; and (BB) to any person authorized by the commissioner. (iii) Provide that the permittee shall maintain the policy in full force and effect unless the commissioner consents in writing to termination of the policy. (iv) Provide for assignment of the policy to a transferee permittee. (v) Provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure of the permittee to pay the premium. No policy may: Indiana Administrative Code Page 249