Mich. Admin. Code R. 299.9707 - Certificate of deposit or time deposit account
Rule 707.
(1) An
owner or operator may satisfy the requirements of R 299.9703 by placing funds
in the amount of the current approved closure or post-closure cost estimate in
an insured, negotiable certificate of deposit or time deposit account held by a
bank or other financial institution regulated and examined by a federal or
state agency. The value of the certificate of deposit or time deposit account
shall be fully insured by an agency of the United States government, unless
otherwise approved by the director.
(2) The certificate or account shall be in
the sole name of the director with a maturity of not less than 6
months.
(3) The owner or operator
shall execute an agreement with the director which identifies the reasons for
which the director may cash the certificate of deposit or time deposit account.
The agreement shall be executed on a form approved by the director.
(4) A certificate or time deposit account of
less than a 1-year maturity shall provide for automatic renewal. An owner or
operator shall renew or replace a certificate of deposit or time deposit
account of 1 year or more not less than 60 days before the maturity
date.
(5) The certificate of
deposit or time deposit account shall be issued in an amount at least equal to
the current approved closure or post-closure cost estimate, except when used
with other mechanisms as provided in R 299.9703(2).
(6) When the current approved closure or
post-closure cost estimate increases to an amount more than the value of the
certificate of deposit or time deposit account, the owner or operator, within
60 days after the increase is approved or issued by the director, shall either
cause the amount of the certificate of deposit or time deposit account to be
increased so that it at least equals the current approved closure or
post-closure cost estimate and submit evidence of such increase to the director
or obtain other financial assurance as specified in this part to cover the
increase. During the period of post-closure care, the director may approve a
decrease in the amount of the certificate of deposit or time deposit account if
the owner or operator demonstrates to the director that the amount exceeds the
remaining cost of post-closure care after inflation is considered.
(7) The director may cash the certificate of
deposit or withdraw funds from the time deposit account to correct the
violations, complete closure, and maintain the facility in accordance with the
approved plans after doing both of the following:
(a) Issuing a notice of violation or other
order to the owner or operator which alleges that the owner or operator has
failed to perform closure or post-closure care in accordance with the closure
or post-closure plan or other license requirements.
(b) Providing the owner or operator 7 days'
notice and opportunity for hearing.
(8) If the owner or operator elects not to
continue the use of the certificate of deposit or time deposit account to
provide financial assurance as required, or any portion thereof, the owner or
operator shall provide acceptable financial assurance to the director 60 days
before the maturity date of the certificate of deposit or time deposit account.
If the owner or operator fails to so provide, the director may cash the
certificate of deposit or time deposit account and place the funds in a state
treasury account. The director may release such funds to the owner or operator
at such time as the owner or operator provides acceptable replacement financial
assurance.
(9) The director shall
release funds held in a certificate of deposit or time deposit account to the
owner or operator when the owner or operator substitutes alternate financial
assurance as specified in this part or the director releases the owner or
operator from the requirements of this part in accordance with R
299.9703(5).
Notes
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