If a licensee elects to satisfy the requirement of Section
326.90
of this Part by securing a surety bond, that bond shall conform to the
following requirements:
a) The surety
company issuing the bond shall be among those listed as acceptable sureties or
reinsurers on federal bonds in Circular 570 of the U.S. Department of the
Treasury, entitled "Surety Companies Acceptable On Federal Bonds", revised to
the latest revision issued by the U.S. Department of the Treasury.
AGENCY NOTE: For the licensee's information, Circular 570
entitled "Surety Companies Acceptable On Federal Bonds" is updated every July
and the Agency will accept the bonds on the latest July revision date issued by
the U.S. Department of the Treasury.
b) The wording of the surety bond shall
contain the substantive provisions specified in Appendix B of this Part.
Additional conditions may be agreed to between the licensee and the surety
company so long as no requirement of this Part is avoided or altered and no
additional requirements are placed upon the Agency.
c) The surety bond shall guarantee that:
1) Funds will be available, whenever required
by the Agency, in order to terminate the license in accordance with the
requirements of 32 Ill. Adm. Code
330;
2) The surety waives notification of
amendments to licenses, applicable laws, statutes, rules and regulations and
agrees that no such amendment shall in any way alleviate its obligation on the
bond; and
3) The licensee shall
provide alternative financial assurance arrangements as specified in Section
326.170
of this Part prior to cancellation or termination of the bond.
d) Under the terms of the bond,
the surety shall become liable on the bond obligation when the licensee fails
to perform as guaranteed by the bond. Upon a determination by the Agency that
the licensee has failed to so perform, the surety shall perform reclaiming to
the satisfaction of the State as guaranteed by the bond or shall pay the amount
of the penal sum to the Agency.
e)
The penal sum of the bond shall be in an amount, after considering other
financial assurance arrangements established in accordance with this Part,
sufficient to provide the necessary funds in order to terminate the license in
accordance with the requirements of 32 Ill. Adm. Code
330.
f) The surety may cancel the bond by sending
notice of cancellation by certified mail, return receipt requested, to the
licensee and to the Agency. Cancellation shall not occur, however, during the
180 days beginning on the date after receipt of the notice of cancellation by
both the licensee and the Agency, as evidenced by the return receipts. During
this period, the licensee shall obtain replacement financial assurance as
provided in Section
326.170
of this Part. Upon notification by the Agency that the licensee has failed to
obtain replacement financial assurance approved by the Agency, the surety shall
pay the amount of the penal sum to the Agency.
g) The surety shall not be liable for the
deficiency in the performance of reclaiming after the Agency has determined
satisfactory reclaiming has occurred.
h) The licensee may terminate the bond by
sending written notice to the surety, provided, however, that no such notice
shall become effective until the surety receives written authorization from the
Agency for the termination of the bond. The Agency shall not authorize
termination until the licensee has either provided replacement financial
assurance arrangements in accordance with Section
326.170
of this Part or the Agency has determined satisfactory reclaiming has
occurred.
i) The bond shall be
accompanied by a letter from the licensee referring to the bond by number,
issuing institution and date and providing the following information: the
radioactive material license numbers, names and addresses of the facilities and
the amount of funds for each license assured for reclaiming of the facilities
by the surety bond.