(A)
(1)
A trust
agreement for a trust fund as specified in paragraph (F) of rule
3745-503-05
of the Administrative Code, must be worded as follows on forms prescribed by
the director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted:
"Trust agreement"
Trust agreement. The "agreement,"
entered into as of [date] by and between [name of the owner or operator], a
[state] [corporation, partnership, association, proprietorship], the "grantor,"
and [name of corporate trustee], ["incorporated in the state of __________ " or
"a national bank"], the "trustee."
Whereas, the Ohio Environmental
Protection Agency, ("Ohio EPA"), has established certain rules applicable to
the grantor, requiring that the owner or operator of a facility or a scrap tire
transporter provide assurance that funds will be available when needed for
closure, post-closure care, or corrective actions at the facility, or for scrap
tire transporter closure.
Whereas, the grantor has elected to
establish a trust to provide all or part of such financial assurance for the
facilities identified herein.
Whereas, the grantor, acting through
its duly authorized officers, has selected the trustee to be the trustee under
this agreement, and the trustee is willing to act as trustee,
Now, therefore, the grantor and the
trustee agree as follows:
Section 1. Definitions. As used in this
agreement:
(a)
The term "grantor" means the owner or operator who
enters into this agreement and any successors or assigns of the grantor.
(b)
The
term "trustee" means the trustee who enters into this agreement and any
successor trustee.
(c)
The term "director" means the director of
environmental protection or a representative delegated by the director to act
on the director's behalf.
Section 2. Identification of facilities
and cost estimates. This agreement pertains to a solid waste facility or a
scrap tire transporter and cost estimates identified on attached schedule A [on
schedule A, for each facility and scrap tire transporter list the name,
address, and the current closure, post-closure care, scrap tire transporter
closure, or corrective actions cost estimates, or portions thereof, for which
financial assurance is demonstrated by this agreement].
Section 3. Establishment of fund. The
grantor and the trustee hereby establish a trust fund, the "fund," for the
benefit of the Ohio EPA. The grantor and the trustee intend that no third party
have access to the fund except as herein provided. The fund is established
initially as consisting of the property, which is acceptable to the trustee,
described in schedule B attached hereto. Such property and any other property
subsequently transferred to the trustee is referred to as the fund, together
with all earnings and profits thereon, less any payments or distributions made
by the trustee pursuant to this agreement. The fund will be held by the
trustee, in trust, as hereinafter provided. The trustee shall not be
responsible nor shall it undertake any responsibility for the amount or
adequacy of, nor any duty to collect from the grantor, any payments necessary
to discharge any liabilities of the grantor established by the Ohio EPA.
Section 4. Payment for closure and
post-closure care, scrap tire transporter closure, and corrective actions. The
trustee will make such payments from the fund as the director will direct, in
writing, to provide for the payment of the costs of closure, post-closure care,
or corrective actions at the facility or scrap tire transporter closure covered
by this agreement. The trustee will reimburse the grantor or other persons as
specified by the director from the fund for closure, post-closure care, scrap
tire transporter closure, or corrective actions expenditures in such amounts as
the director will direct, in writing. In addition, the trustee will refund to
the grantor such amounts as the director specifies in writing. Upon refund,
such funds will no longer constitute part of the fund as defined herein.
Section 5. Payments comprising the
fund. Payments made to the trustee for the fund will consist of cash or
securities acceptable to the trustee.
Section 6. Trustee management. The
trustee will invest and reinvest the principal and income of the fund and keep
the fund invested as a single fund, without distinction between principal and
income, in accordance with general investment policies and guidelines which the
grantor may communicate in writing to the trustee periodically, subject,
however, to the provisions of this section. In investing, reinvesting,
exchanging, selling, and managing the fund, the trustee will discharge the
duties with respect to the trust fund solely in the interest of the beneficiary
and with the care, skill, prudence, and diligence under the circumstances then
prevailing which persons of prudence, acting in a like capacity and familiar
with such matters, would use in the conduct of an enterprise of a like
character and with like aims; except that:
(a)
Securities or
other obligations of the grantor, or any other owner or operator of the
facilities or scrap tire transporter, or any of their affiliates as defined in
the Investment Company Act of 1940, as amended, 15 U.S.C. section 80a -
2(a),
will not be acquired or held, unless they are securities or other obligations
of the federal or a state government;
(b)
The trustee is
authorized to invest the fund in time or demand deposits of the trustee, to the
extent insured by an agency of the federal or state government;
(c)
The
trustee is authorized to hold cash awaiting investment or distribution
uninvested for a reasonable time and without liability for the payment of
interest thereon.
Section 7. Commingling and investment.
The trustee is expressly authorized in its discretion:
(a)
To transfer
periodically any or all of the assets of the fund to any common, commingled, or
collective trust fund created by the trustee in which the fund is eligible to
participate, subject to all of the provisions thereof, to be commingled with
the assets of other trusts participating therein;
(b)
To purchase
shares in any investment company registered under the Investment Company Act of
1940,
15 U.S.C. sections
80a-1 et seq., including one which may be
created, managed, underwritten, or to which investment advice is rendered or
the shares of which are sold by the trustee. The trustee may vote such shares
in its discretion.
Section 8. Express powers of trustee.
Without in any way limiting the powers and discretion conferred upon the
trustee by the other provisions of this agreement or by law, the trustee is
expressly authorized and empowered:
(a)
To sell,
exchange, convey, transfer, or otherwise dispose of any property held by it, by
public or private sale. No person dealing with the trustee will be bound to see
to the application of the purchase money or to inquire into the validity or
expediency of any such sale or other disposition;
(b)
To make,
execute, acknowledge, and deliver any and all documents of transfer and
conveyance and any and all other instruments that may be necessary or
appropriate to carry out the powers herein granted;
(c)
To register any
securities held in the fund in its own name or in the name of a nominee and to
hold any security in bearer form or in book entry, or to combine certificates
representing such securities with certificates of the same issue held by the
trustee in other fiduciary capacities, or to deposit or arrange for the deposit
of such securities in a qualified central depository even though, when so
deposited, such securities may be merged and held in bulk in the name of the
nominee of such depository with other securities deposited therein by another
person, or to deposit or arrange for the deposit of any securities issued by
the United States government, or any agency or instrumentality thereof, with a
Federal Reserve Bank, but the books and records of the trustee will at all
times show that all such securities are part of the fund;
(d)
To deposit any
cash in the fund in interest-bearing accounts maintained or savings
certificates issued by the trustee, in its separate corporate capacity, or in
any other banking institution affiliated with the trustee, to the extent
insured by an agency of the federal or state government;
(e)
To compromise or
otherwise adjust all claims in favor of or against the fund.
Section 9. Taxes and expenses. All
taxes of any kind that may be assessed or levied against or in respect of the
fund and all brokerage commissions incurred by the fund will be paid from the
fund. All other expenses, proper charges, and disbursements, incurred by the
trustee in connection with the administration of this trust, including fees for
legal services rendered to the trustee, the compensation of the trustee to the
extent not paid directly by the grantor, and all other proper charges and
disbursements of the trustee will be paid from the fund. Expenses, proper
charges, and disbursements include fees for legal services, rendered to the
trustee and the compensation of the trustee to the extent the grantor fails to
compensate the trustee pursuant to section 12.
Section 10. Annual valuation. The
trustee will annually, not later than thirty days prior to the anniversary date
of the establishment of the fund, furnish to the grantor and to the director a
statement confirming the value of the trust. Any securities in the fund will be
valued at market value as of no more than sixty days prior to the anniversary
date of establishment of the fund. The failure of the grantor to object in
writing to the trustee not later than ninety days after the statement has been
furnished to the grantor and the director will constitute a conclusively
binding assent by the grantor, barring the grantor from asserting any claim or
liability against the trustee with respect to matters disclosed in the
statement.
Section 11. Advice of counsel. The
trustee may periodically consult with counsel, who may be counsel to the
grantor, with respect to any question arising as to the construction of this
agreement or any action to be taken hereunder. The trustee will be fully
protected, to the extent permitted by law, in acting upon the advice of
counsel.
Section 12. Trustee compensation. The
trustee will be entitled to reasonable compensation from the grantor for the
trustee's services as agreed upon in writing periodically with the
grantor.
Section 13. Successor trustee. The
trustee may resign or the grantor may replace the trustee, but such resignation
or replacement shall not be effective until the grantor has appointed a
successor trustee and this successor accepts the appointment. The successor
trustee will have the same powers and duties as those conferred upon the
trustee hereunder. Upon the successor trustee's acceptance of the appointment,
and upon the director's written approval, the trustee will assign, transfer,
and pay over to the successor trustee the funds and properties then
constituting the fund. If for any reason the grantor cannot or does not act in
the event of the resignation of the trustee, the trustee may apply to a court
of competent jurisdiction for the appointment of a successor trustee or for
instructions. The successor trustee shall specify the date on which it assumes
administration of the trust in a writing sent to the grantor, the director, and
the present trustee by certified mail or any other form of mail accompanied by
a receipt not later than ten days before such change becomes effective. The
director's written approval must be given prior to the ten days notice provided
by the successor trustee. Any expenses incurred by the trustee as a result of
any of the acts contemplated by this section will be paid as provided in
section 9.
Section 14. Instructions to the
trustee. All orders, requests, and instructions by the grantor to the trustee
will be in writing, signed by such persons as are designated in the attached
Exhibit A or such other designees as the grantor may designate by amendment to
Exhibit A. The trustee will be fully protected in acting without inquiry in
accordance with the grantor's orders, requests, and instructions. All orders,
requests, and instructions by the director to the trustee will be in writing,
signed by the director, and the trustee will act and will be fully protected in
acting in accordance with such orders, requests, and instructions. The trustee
will have the right to assume, in the absence of written notice to the
contrary, that no event constituting a change or a termination of the authority
of any person to act on behalf of the grantor or the director hereunder has
occurred. The trustee will have no duty to act in the absence of such orders,
requests, and instructions from the grantor or the director except as provided
for herein.
Section 15. Notice of nonpayment. The
trustee will notify the grantor and the director by certified mail or any other
form of mail accompanied by a receipt not later than ten days after the
expiration of the thirty-day period following the anniversary of the
establishment of the trust, if no payment is received from the grantor during
the period. After the pay-in period is completed, the trustee is not required
to send a notice of nonpayment.
Section 16. Amendment of agreement.
This agreement may be amended by an instrument in writing executed by the
grantor, the trustee, and the director, or by the trustee and the director if
the grantor ceases to exist.
Section 17. Irrevocability and
termination. Subject to the right of the parties to amend this agreement as
provided in section 16, this trust will be irrevocable and will continue until
termination at the written agreement of the grantor, the trustee, and the
director, or by the trustee and the director if the grantor ceases to exist.
Upon termination of the trust, all remaining trust property, less final trust
administration expenses, will be delivered to the grantor, unless the trust is
a standby trust fund created in accordance with a surety bond guaranteeing
payment into a trust fund, a surety bond guaranteeing performance, or a letter
of credit, in which case all remaining trust property, less final trust
administration expenses, will be delivered to the provider of the financial
assurance.
Section 18. Immunity and
indemnification. The trustee will not incur personal liability of any nature in
connection with any act or omission, made in good faith, in the administration
of this trust, or in carrying out any directions by the grantor or the director
issued in accordance with this agreement. The trustee will be indemnified and
saved harmless by the grantor or from the trust fund, or both, from and against
any personal liability to which the trustee may be subjected by reason of any
act or conduct in its official capacity, including all expenses reasonably
incurred in its defense in the event the grantor fails to provide such
defense.
Section 19. Choice of law. This
agreement will be administered, construed, and enforced according to the laws
of the state of Ohio.
Section 20. Interpretation. As used in
this agreement, words in the singular include the plural and words in the
plural include the singular. The descriptive headings for each section of this
agreement will not affect the interpretation or the legal efficacy of this
agreement.
In witness whereof the parties have
caused this agreement to be executed by their respective officers duly
authorized and their corporate seals to be hereunto affixed and attested as of
the date first above written: the parties below certify that the wording of
this agreement is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted on
the date first above written.
[Signature of grantor]
[Title]
Attest:
[Title]
[Seal]
[Signature of trustee]
Attest:
[Title]
[Seal]"
(2)
The following is
an example of the certification of acknowledgment, which must accompany the
trust agreement for a trust fund as specified in paragraph (F) of rule
3745-503-05
of the Administrative Code:
"State of _______________
County of ________________
On this [date], before me personally
came [owner or operator] to me known, who, being by me duly sworn, did depose
and say that she/he resides at [address], that she/he is [title] of
[corporation], and the corporation described in and which executed the above
instrument; that she/he knows the seal of said corporation; that the seal
affixed to such instrument is such corporate seal; that it was so affixed by
order of the board of directors of said corporation, and that she/he signed
her/his name thereto by like order.
[Signature of notary public]"
[Comment: As required in paragraph
(F)(2) of rule
3745-503-05
of the Administrative Code, the trust agreement must be accompanied by a formal
certification of acknowledgment. The previous paragraph is only an
example.]
(B)
A surety bond
guaranteeing payment into a trust fund, as specified in paragraph (G) of rule
3745-503-05
of the Administrative Code, must be worded as follows on forms prescribed by
the director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted:
"Financial guarantee bond
Date bond executed:
______________
Effective date: ______________
Principal: [legal name and business
address of owner or operator]
Type of organization: [insert
"individual," "joint venture," "partnership," or "corporation"]
State of incorporation:
______________
Surety(ies): [name(s) and business
address(es)]
Name, address, and closure,
post-closure care, scrap tire transporter closure, or corrective actions
amount(s) for each facility or scrap tire transporter guaranteed by this bond
[indicate closure, post-closure care, scrap tire transporter closure, or
corrective actions amounts separately]:
$ ______________
Total penal sum of bond: $
______________
Surety's bond number:
______________
Know all persons by these presents,
that we, the principal and surety(ies) hereto are firmly bound to the Ohio
Environmental Protection Agency ("Ohio EPA"), in the above penal sum for the
payment of which we bind ourselves, our heirs, executors, administrators,
successors, and assigns, jointly and severally; provided that, where the
surety(ies) are corporations acting as co-sureties, we, the sureties, bind
ourselves in such sum "jointly and severally" only for the purpose of allowing
a joint action or actions against any or all of us, and for all other purposes
each surety binds itself, jointly and severally with the principal, for the
payment of such sum only as is set forth opposite the name of such surety, but
if no limit of liability is indicated, the limit of liability shall be the full
amount of the penal sum.
Whereas, said principal is required to
have an Ohio EPA permit(s) or registration, in order to operate each facility
identified above, or a scrap tire transporter registration;
Whereas, said principal is required to
provide financial assurance for closure, or closure and post-closure care, or
post-closure care, or corrective actions of the facility or scrap tire
transporter closure as a condition of Chapter 3734. of the Revised Code;
Whereas said principal shall establish
a standby trust fund in accordance with rules adopted under Chapter 3734. of
the Revised Code concerning financial assurance for solid waste facilities or a
scrap tire transporter.
Now, therefore, for a facility, the
conditions of the obligation are such that if the principal shall faithfully,
before the beginning of closure, post-closure care or corrective actions, of
each facility identified above, fund the standby trust fund in the amount
identified above for the facility,
Now, therefore, for a scrap tire
transporter, the conditions of the obligation are such that if the principal
shall faithfully, before the registration expires, fund the standby trust fund
in the amount identified above for the scrap tire transporter,
Or, if the principal shall fund the
standby trust fund in such an amount not later than fifteen days after an order
to begin closure is issued by the director, or an Ohio court, or a U.S.
district court, or other court of competent jurisdiction, or not later than
fifteen days after a notice of revocation of the facility license or the
denial, suspension, or revocation of the registration,
Or, if the principal shall provide
alternate financial assurance in accordance with rules adopted under Chapter
3734. of the Revised Code concerning financial assurance for solid waste
facilities or a scrap tire transporter, and obtain the director's written
approval of such alternate financial assurance, not later than ninety days
after the first day that notice of cancellation has been received by both the
principal and the director from the surety(ies), then this obligation will be
null and void; otherwise it is to remain in full force and effect.
The surety(ies) shall become liable on
this bond obligation only when the principal has failed to fulfill the
conditions described above. Upon notification by the director that the
principal has failed to perform as guaranteed by this bond, the surety(ies)
shall place funds in the amount guaranteed for the facility or scrap tire
transporter into the standby trust fund as directed by the director.
The liability of the surety(ies) shall
not be discharged by any payment or succession of payments hereunder, unless
and until such payment or payments shall amount in the aggregate to the penal
sum of the bond, but in no event shall the obligation of the surety(ies)
hereunder exceed the amount of said penal sum.
The surety(ies) may cancel the bond by
sending notice of cancellation by certified mail or any other form of mail
accompanied by a receipt to the principal and to the director, provided,
however, that cancellation shall not occur during the one hundred twenty day
period beginning on the first day of receipt of the notice of cancellation by
both the principal and the director as evidenced by the return
receipt(s).
The principal may terminate this bond
by sending written notice to the surety(ies)and to the director, provided,
however, that no such notice shall become effective until the surety(ies)
receive(s) written authorization for termination of the bond by the
director.
[The following paragraph is an optional
rider that may be included but is not required.]
Principal and surety(ies) hereby agree
to adjust the penal sum of the bond annually so that it guarantees a new
closure, post-closure care, scrap tire transporter closure, or corrective
actions amount, provided that the penal sum does not increase by more than
twenty per cent in any one year, and no decrease in the penal sum takes place
without the written permission of the director.
In witness whereof, the principal and
surety(ies) have executed this financial guarantee bond and have affixed their
seals on the date set forth above.
The persons whose signatures appear
below hereby certify that they are authorized to execute this surety bond on
behalf of the principal and surety(ies) and that the wording of this surety
bond is identical to the wording specified in rules adopted under Chapter 3734.
of the Revised Code concerning financial assurance for solid waste facilities
or a scrap tire transporter as such rules were constituted on the date this
bond was executed.
Principal
Signature(s): ______________
Name(s) and title(s) [typed]:
___________
Corporate seal:
Corporate surety(ies)
Name and address: ______________
State of incorporation:
______________
Liability limit: $ ______________
Signature(s): ______________
Name(s) and title(s) [typed]:
_________
Corporate seal:
[For every co-surety, provide
signature(s), corporate seal, and other information in the same manner as for
surety above.]
Bond premium: $ ______________ "
(C)
A surety bond guaranteeing performance of closure,
post-closure care, scrap tire transporter closure, or corrective actions, as
specified in paragraph (H) of rule
3745-503-05
of the Administrative Code, must be worded as follows on forms prescribed by
the director, except that instructions in brackets are to be replaced by the
relevant information and the brackets deleted:
"Performance bond
Date bond executed:
______________
Effective date: ______________
Principal: [legal name and business
address of owner or operator]
Type of organization: [insert
"individual," "joint venture," "partnership," or "corporation"]
State of incorporation:
______________
Surety(ies): [name(s) and business
address(es)]
Name, address, and closure,
post-closure care, scrap tire transporter closure, or corrective actions amount
for each facility or scrap tire transporter guaranteed by this bond [indicate
closure, post-closure care, scrap tire transporter closure, and corrective
actions amounts separately]: $ ______________
Total penal sum of bond: $
______________
Surety's bond number:
______________
Know all persons by these presents,
that we, the principal and surety(ies) hereto are firmly bound to the Ohio
Environmental Protection Agency ("Ohio EPA"), in the above penal sum for the
payment of which we bind ourselves, our heirs, executors, administrators,
successors, and assigns jointly and severally; provided that, where the
surety(ies) are corporations acting as co-sureties, we, the sureties, bind
ourselves in such sum "jointly and severally" only for the purpose of allowing
a joint action or actions against any or all of us, and for all other purposes
each surety binds itself, jointly and severally with the principal, for the
payment of such sum only as is set forth opposite the name of such surety, but
if no limit of liability is indicated, the limit of liability shall be the full
amount of the penal sum.
Whereas, said principal is required to
have an Ohio EPA permit(s) or registration in order to operate each facility or
scrap tire transporter identified above, and
Whereas said principal is required to
provide financial assurance for closure, or closure and post-closure care, or
post-closure care, or corrective actions as a condition of the permit(s) or
registration(s), and
Whereas said principal shall establish
a standby trust fund as is required when a surety bond is used to provide such
financial assurance;
Now, therefore, for a facility, the
conditions of this obligation are such that if the principal shall faithfully
perform closure whenever required to do so, of each facility for which this
bond guarantees closure, in accordance with the closure or post-closure care
plan, and other requirements of the permit as such plan and permit may be
amended, pursuant to all applicable laws, statutes, rules, and regulations, as
such laws, statutes, rules, and regulations may be amended.
And, for a facility, if the principal
shall faithfully perform post-closure care of each facility for which this bond
guarantees post-closure care, in accordance with the closure/post-closure care
plan and other requirements of the permit, as such plan and permit may be
amended, pursuant to all applicable laws, statutes, rules, and regulations, as
such laws, statutes, rules, and regulations may be amended.
And, for a facility, if the principal
shall faithfully perform corrective actions at each facility for which this
bond guarantees corrective actions in accordance with the corrective actions
plan and other requirements of the permit, as such plan and permit may be
amended, pursuant to all applicable laws, statutes, rules, and regulations, as
such laws, statutes, rules, and regulations may be amended.
Now, for a scrap tire transporter, if
the principal shall faithfully perform the activities specified in rules
adopted under Chapter 3734. of the Revised Code for which this bond guarantees,
pursuant to all applicable laws, statutes, rules, and regulations, as such
laws, statutes, rules, and regulations may be amended.
Or, if the principal shall provide
alternate financial assurance as specified in rules adopted under Chapter 3734.
of the Revised Code and obtain the director's written approval of such
alternate financial assurance not later than ninety days after the date notice
of cancellation is received by both the principal and the director from
surety(ies), then this obligation will be null and void, otherwise it is to
remain in full force and effect.
The surety(ies) shall become liable on
this bond obligation only when the principal has failed to fulfill the
conditions described above.
[The following paragraph is only
required for those facilities required to conduct closure activities and should
not be included in surety bonds for scrap tire transporters.]
Upon notification by the director that
the principal has been found in violation of the closure requirements of rules
adopted under Chapter 3734. of the Revised Code for a facility for which this
bond guarantees performance of closure, the surety(ies) shall either perform
closure in accordance with the closure/post-closure care plan and other permit
or registration requirements or place the closure amount guaranteed for the
facility into the standby trust fund as directed by the director.
[The following paragraph is only
required for sanitary landfill facilities because only they are required to
conduct post-closure care activities.]
Upon notification by the director that
the principal has been found in violation of the post-closure care requirements
of rules adopted under Chapter 3734. of the Revised Code for a facility for
which this bond guarantees performance of post-closure care, the surety(ies)
shall either perform post-closure care in accordance with the
closure/post-closure care plan and other permit requirements or place the
post-closure care amount guaranteed for the facility into the standby trust
fund as directed by the director.
[The following paragraph is only
required for municipal solid waste landfill facilities, because only they are
required to conduct corrective actions activities.]
Upon notification by the director that
the principal has been found in violation of the corrective actions
requirements of rules adopted under Chapter 3734. of the Revised Code for a
facility for which this bond guarantees performance of corrective actions, the
surety(ies) shall either perform the corrective actions in accordance with the
corrective actions plan and other permit requirements or place the corrective
actions amount guaranteed for the facility into the standby trust fund as
directed by the director.
[The following paragraph is only
required for scrap tire transporters.]
Upon notification by the director that
the principal has failed to remove accumulations of scrap tires, delivered by
the scrap tire transporter to a location not authorized to receive scrap tires
by rules adopted under Chapter 3734. of the Revised Code, or failed to remove
and properly dispose of any scrap tires which have been open dumped by the
scrap tire transporter, or has been found to be in violation of rules adopted
under Chapter 3734. of the Revised Code, the surety(ies) shall either perform
the required activities in accordance with applicable rules or place the amount
guaranteed for the scrap tire transporter into the standby trust fund as
directed by the director.
Upon notification by the director that
the principal has failed to provide alternate financial assurance as specified
in rules adopted under Chapter 3734. of the Revised Code concerning financial
assurance for solid waste facilities or a scrap tire transporter and obtain
written approval of such alternate financial assurance from the director not
later than ninety days after receipt by both the principal and the director of
a notice of cancellation of the bond, the surety(ies) shall place funds in the
amount guaranteed for the facility or scrap tire transporter into the standby
trust fund as directed by the director.
The surety(ies) hereby waive(s)
notification of amendments to the closure/post-closure care plans, permits,
applicable laws, statutes, rules, and regulations and agrees that no such
amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the surety(ies) shall
not be discharged by any payment or succession of payments hereunder, unless
and until such payment or payments shall amount in the aggregate to the penal
sum of the bond, but in no event shall the obligation of the surety(ies)
hereunder exceed the amount of said penal sum.
The surety(ies) may cancel the bond by
sending notice of cancellation by certified mail or any other form of mail
accompanied by a receipt to the owner or operator and to the director,
provided, however, that cancellation cannot occur during the one hundred twenty
day period beginning on the first day of receipt of the notice of cancellation
by both the principal and the director as evidenced by the return
receipts.
The principal may terminate this bond
by sending written notice to the surety(ies) and to the director, provided,
however, that no such notice shall become effective until the surety(ies)
receive(s) written approval for termination of the bond by the director.
[The following paragraph is an optional
rider that may be included but is not required.]
Principal and surety(ies) hereby agree
to adjust the penal sum of the bond annually so that it guarantees a new
closure, post-closure care, scrap tire transporter closure, or corrective
actions amount, provided that the penal sum does not increase by more than
twenty per cent in any one year, and no decrease in the penal sum occurs
without the written approval of the director.
In witness whereof, the principal and
surety(ies) have executed this performance bond and have affixed their seals on
the date set forth above.
The persons whose signatures appear
below hereby certify that they are authorized to execute this surety bond on
behalf of the principal and surety(ies) and that the wording of this surety
bond is identical to the wording specified in rules adopted under Chapter 3734.
of the Revised Code concerning financial assurance for solid waste facilities
or a scrap tire transporter as such rules were constituted on the date this
bond was executed.
Principal
Signature(s): ______________
Name(s) and title(s) [typed]:
______________
Corporate seal: ______________
Corporate surety(ies)
Name and address: ______________
State of incorporation:
______________
Liability limit: $ ______________
Signature(s): ______________
Name(s) and title(s) [typed]:
______________
Corporate seal:
[For every co-surety, provide
signature(s), corporate seal, and other information in the same manner as for
surety above.]
Bond premium: $ ______________ "
(D)
A letter of credit as specified in paragraph (I) of
rule
3745-503-05
of the Administrative Code must be worded as follows on forms prescribed by the
director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted[note: A letter of credit may also
contain provisions used by the issuing institution in its regular course of
business, provided that such provisions do not alter the terms and conditions
in this paragraph]:
"Irrevocable standby letter of
credit
[Director]
Ohio Environmental Protection
Agency
Dear sir or madam: We hereby establish
our irrevocable standby letter of credit no. __________ in your favor, at the
request and for the account of [owner's or operator's name and address] up to
the aggregate amount of [in words] U.S. dollars ($ __________ ), available upon
presentation of
(1)
Your sight draft, bearing reference to this letter of
credit no. ______________ , and
(2)
Your signed
statement reading as follows: "I certify that the amount of the draft is
payable pursuant to regulations issued under the authority of Chapter 3734. of
the Revised Code as amended."
This letter of credit is effective as
of [date] and will expire on [date of at least one year later], but such
expiration date will be automatically extended for a period of [at least one
year] on [date] and on each successive expiration date, unless, at least one
hundred twenty days prior to the current expiration date, we notify both you
and [owner's or operator's name] by certified mail or any other form of mail
accompanied by a receipt that we have decided not to extend this letter of
credit beyond the current expiration date. In the event that you are so
notified, any unused portion of the credit will be available upon presentation
of your sight draft for one hundred twenty days after the first day of receipt
by both you and [owner's or operator's name] as evidenced by the return
receipts.
Whenever this letter of credit is drawn
under and in compliance with the terms of this credit, we will duly honor such
draft upon presentation to us, and we will deposit the amount of the draft
directly into the standby trust fund by [owner's or operator's name] in
accordance with your instructions.
We certify that the wording of this
letter of credit is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted on
the date shown immediately below.
[Signature(s) and title(s) of
official(s) of issuing institution] [date]
This credit is subject to [insert "the
most recent edition of the "Uniform Customs and Practice for Documentary
Credits," published by the International Chamber of Commerce" or "The Uniform
Commercial Code"]."
[Comment: In the event that the owner
or operator ceases to exist, any unused portion of the credit will be available
for the one hundred twenty day period after the date of receipt by the
director, as evidenced by the return receipt.]
(E)
A
certificate of insurance, as specified in rule
3745-503-05
of the Administrative Code, must be worded as follows on forms prescribed by
the director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted:
"Certificate of insurance for closure,
post-closure care, corrective actions, or scrap tire transporter closure
Name and address of insurer
(Herein called the "insurer"):
______________
Name and address of insured
(Herein called the "insured"):
______________
Facilities or scrap tire transporters
covered: [list for each facility or scrap tire transporter: name, address,
county in which the facility or scrap tire transporter is located, and the
amount of insurance for closure, post-closure care, scrap tire transporter
closure or corrective actions provided under the insurance policy (the
aggregate amount for all facilities or scrap tire transporters covered must
total the face amount shown below).]
Face amount: $ ______________
Policy number: ______________
Effective date: ______________
The insurer hereby certifies that it
has issued to the insured the policy of insurance identified above to provide
financial assurance for [insert "closure," "closure and post-closure care,"
"post-closure care," "corrective actions," or "scrap tire transporter closure"]
for the facilities or scrap tire transporters identified above. The insurer
further warrants that such insurance policy conforms in all respects with the
requirements of rules adopted under Chapter 3734. of the Revised Code as such
rules were constituted on the date shown immediately below. It is agreed that
any provision of the insurance policy inconsistent with such regulations is
hereby amended to eliminate such inconsistency.
Whenever requested by the director of
the Ohio Environmental Protection Agency, the insurer agrees to furnish to the
director a duplicate original of the insurance policy listed above, including
all endorsements thereon.
I hereby certify that the wording of
this certificate is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted on
the date shown immediately below.
[Authorized signature for
insurer]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
______________
[Date]"
(F)
A letter from
the chief financial officer, as specified in paragraph (K) of rule
3745-503-05
of the Administrative Code must be worded as follows on forms prescribed by the
director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted:
"Letter from chief financial
officer
[Address to director, Ohio
Environmental Protection Agency.]
I am the chief financial officer of
[name and address of firm]. This letter is in support of this firm's use of the
financial test to demonstrate financial assurance, as specified in rules
adopted under Chapter 3734. of the Revised Code.
[Fill out the following three
paragraphs regarding facilities or scrap tire transporters and associated cost
estimates. If your firm has no facilities or scrap tire transporters that
belong in a particular paragraph, write "none" in the space indicated. For each
facility or scrap tire transporter, include its name, address, county, and
current closure, post-closure care, scrap tire transporter closure, or
corrective actions cost estimates and any other environmental obligations, if
any. Identify each cost estimate as to whether it is for closure, post-closure
care, scrap tire transporter closure, or corrective actions.]
(1)
This firm is the
owner or operator of the following facilities or scrap tire transporters for
which financial assurance for closure, post-closure care, corrective actions,
or scrap tire transporter closure is demonstrated through the financial test
specified in rules adopted under Chapter 3734. of the Revised Code concerning
financial assurance for solid waste facilities or a scrap tire transporter or
this firm is the owner or operator of the following facilities for which
financial assurance for any other environmental obligations are assured by a
financial test. The current closure, post-closure care, scrap tire transporter
closure, or corrective actions cost estimates, and any other environmental
obligations, provided for by a financial test are shown for each facility or
scrap tire transporter: $ ______________ .
(2)
This firm
guarantees, through the corporate guarantee specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter, the closure, post-closure care,
or corrective actions of the following facilities permitted by subsidiaries of
this firm or closure for scrap tire transporters or this firm guarantees,
through the corporate guarantee, any other environmental obligations of the
following facilities permitted by subsidiaries of this firm. The current cost
estimates for the closure, post-closure care, scrap tire transporter closure,
or corrective actions, and any other environmental obligations, so guaranteed
are shown for each facility or scrap tire transporter closure: $ ______________
.
(3)
This firm is the owner or operator of the following
facilities or scrap tire transporters for which financial assurance
requirements for closure, scrap tire transporter closure, post-closure care, or
corrective actions or any other environmental obligations are satisfied through
a financial test other than that required by rules adopted under Chapter 3734.
of the Revised Code concerning financial assurance for solid waste facilities
or a scrap tire transporter. The current closure, post-closure care, scrap tire
transporter closure, or corrective actions cost estimates, or any other
environmental obligations covered by such financial assurance are shown for
each facility or scrap tire transporter:
$ ______________ .
This firm [insert "is required" or "is
not required"] to file a form 10k with the Securities and Exchange Commission
(SEC) for the most recent fiscal year.
The fiscal year of this firm ends on
[month, day]. The figures for the following items marked with an asterisk are
derived from this firm's independently audited, year-end financial statements
for the most recently completed fiscal year, ended [date].
[Fill in Alternative I if the criteria
of paragraph (K)(1)(a) of rule
3745-503-05
of the Administrative Code is used. Fill in Alternative II if the criteria of
paragraph (K)(1)(b) of rule
3745-503-05
of the Administrative Code is used.]
Alternative I
1.
Sum of current
closure, post-closure care, scrap tire transporter closure, or corrective
actions cost estimates, and any other environmental obligations assured by a
financial test (total of all cost estimates shown in the three paragraphs
above): $ ________________ .
2.
Total liabilities
[if any portion of the closure, post-closure care, scrap tire transporter
closure, or corrective actions cost estimate is included in total liabilities,
you may deduct the amount of that portion from this line and add that amount to
lines 3 and 4]: $ ____________________ .
3.
Tangible net
worth: $ _________________________ .
4.
Net worth: $
_______________________________ .
5.
Current assets: $
____________________________ .
6.
Current
liabilities: $ __________________________ .
7.
Net working
capital [line 5 minus line 6]: $ ______________ .
8.
The sum of net
income plus depreciation, depletion, and amortization minus $10 million: $
__________________ .
9.
Total assets in U.S. (required only if less than 90% of
firm's assets are located in the U.S.): $ ________________ .
Yes No
10.
Is line 3 at
least $10 million? . . .
11.
Is line 3 at least 6 times line 1? . . .
12.
Is
line 7 at least 6 times line 1? . . .
*13. Are at least 90% of firm's assets
located in the U.S.? . . . If not, complete line 14.
14.
Is line 9 at
least 6 times line 1? . . .
15.
Is line 2
divided by line 4 less than 2.0 ? . . .
16.
Is line 8
divided by line 2 greater than 0.1 ? . . .
17.
Is line 5
divided by line 6 greater than 1.5 ? . . .
Alternative II
1.
Sum of current
closure, post-closure care, scrap tire transporter closure, or corrective
actions cost estimates, and any other environmental obligations assured by a
financial test (total of all cost estimates shown in the three paragraphs
above): $ _______________ .
2.
Current bond
rating of most recent issuance of this firm and name of rating service:
______________ .
3.
Dateof issuanceof bond: _______________ .
4.
Dateof
maturity of bond: _______________ .
*5. Tangible net worth [if any portion
of the closure, post-closure care, scrap tire transporter closure, and
corrective actions cost estimates is included in total liabilities on your
firm's financial statements, you may add the amount of that portion to this
line]: $ ______________ .
*6. Total assets in U.S. (required only
if less than 90% of firm's assets are located in the U.S.): $ ______________
.
Yes No
7.
Is line 5 at
least $10 million? . . .
8.
Is line 5 at least 6 times line 1? . . .
9.
Are at
least 90% of firm's assets located in the U.S.? . . . If not, complete line
10.
10.
Is line 6 at least 6 times line 1? . . .
I hereby certify that the wording of
this letter is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted on
the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]"
(G)
A corporate guarantee, as specified in paragraph (K)
of rule
3745-503-05
of the Administrative Code, must be worded as follows, except that instructions
in brackets are to be replaced with the relevant information and the brackets
deleted:
"Corporate guarantee for closure,
post-closure care, corrective actions, or scrap tire transporter closure.
Guarantee made this [date] by [name of
guaranteeing entity], a business corporation organized under the laws of the
state of [insert name of state], herein referred to as guarantor, to the Ohio
Environmental Protection Agency ("Ohio EPA"), obligee on behalf of our
subsidiary [owner or operator] of [business address].
Recitals
1.
Guarantor meets
or exceeds the financial test criteria and agrees to comply with the reporting
requirements for guarantors as specified in rules adopted under Chapter 3734.
of the Revised Code concerning financial assurance for solid waste facilities
or a scrap tire transporter.
2.
[Owner or
operator] responsible for the following facility(ies) or scrap tire
transporter(s) covered by this guarantee: [List for each facility or scrap tire
transporter: name and address. Indicate for each whether guarantee is for
closure, post-closure care, both, corrective actions, or for scrap tire
transporter closure].
3.
Closure/post-closure care plans, or corrective actions
plans as used below refer to the plans maintained as required by rules adopted
under Chapter 3734. of the Revised Code for the closure, post-closure care, and
corrective actions of a facility, as identified above.
4.
For value
received from [owner or operator], guarantor guarantees to the Ohio EPA that in
the event that [owner or operator] fails to perform [insert "closure,"
"post-closure care," "closure and post-closure care," or "corrective actions"]
of the above facility in accordance with the closure/post-closure care plans or
corrective actions plans and other permit requirements, as applicable, or, for
a scrap tire transporter, in the event the owner or operator fails to remove
and properly dispose of any accumulation of scrap tires delivered to a location
not authorized to receive scrap tires by rules adopted under Chapter 3734. of
the Revised Code, or fails to remove and properly dispose of any scrap tires
which have been open dumped by the scrap tire transporter, or has been found to
be in violation of rules adopted under Chapter 3734. of the Revised Code, the
guarantor shall remove and properly dispose of the scrap tires or establish a
trust fund as specified in rules adopted under Chapter 3734. of the Revised
Code concerning financial assurance for solid waste facilities or a scrap tire
transporter, in the name of [owner or operator] in the amount of the current
closure, post-closure care, scrap tire transporter closure, or corrective
actions cost estimates as specified in rules adopted under Chapter 3734. of the
Revised Code concerning financial assurance for solid waste facilities or a
scrap tire transporter.
5.
Guarantor agrees that if, at the end of any fiscal
year before termination of this guarantee, the guarantor fails to meet the
financial test criteria, guarantor shall send notice to the director, Ohio EPA,
and to [owner or operator], not later than ninety days after the end of such
fiscal year, by certified mail or any other form of mail accompanied by a
receipt, that the guarantor intends to provide alternate financial assurance as
specified in rules adopted under Chapter 3734. of the Revised Code concerning
financial assurance for solid waste facilities or a scrap tire transporter, in
the name of [owner or operator]. Not later than one hundred twenty days after
the end of such fiscal year, the guarantor shall establish such alternate
financial assurance unless [owner or operator] has done so.
6.
The guarantor
agrees to notify the director by certified mail or any other form of mail
accompanied by a receipt, of a voluntary or involuntary proceeding under "Title
11 (bankruptcy)," U.S. Code, naming guarantor as debtor, not later than ten
days after commencement of the proceeding.
7.
Guarantor agrees
that not later than thirty days after being notified by the director of a
determination that guarantor no longer meets the financial test criteria or
that the guarantor is disallowed from continuing as a guarantor of closure,
post-closure care, corrective actions, or scrap tire transporter closure, the
guarantor shall establish alternate financial assurance as specified in rules
adopted under Chapter 3734. of the Revised Code concerning financial assurance
for solid waste facilities or a scrap tire transporter, in the name of [owner
or operator] unless [owner or operator] has done so.
8.
Guarantor agrees
to remain bound under this guarantee notwithstanding any or all of the
following: amendment or modification of the closure/post-closure care plan or
corrective actions plan, amendment or modification of the permit or
registration, extension or reduction of the time of performance of closure,
post-closure care, or corrective actions, or any other modification or
alteration of an obligation of the owner or operator pursuant to rules adopted
under Chapter 3734. of the Revised Code.
9.
Guarantor agrees
to remain bound under this guarantee for so long as [owner or operator] shall
comply with the applicable financial assurance requirements of rules adopted
under Chapter 3734. of the Revised Code concerning financial assurance for
solid waste facilities or a scrap tire transporter for the above listed
facilities or scrap tire transporter, except that guarantor may cancel this
guarantee by sending notice by certified mail or any other form of mail
accompanied by a receipt to the director and [owner or operator], such
cancellation to become effective not earlier than one hundred twenty days after
receipt of such notice by both Ohio EPA and [owner or operator], as evidenced
by the return receipts.
10.
Guarantor agrees that if [owner or operator] fails to
provide alternate financial assurance as specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter, and obtain written approval of
such alternate financial assurance from the director not later than ninety days
after a notice of cancellation by the guarantor is received by the director
from guarantor, guarantor shall provide such alternate financial assurance in
the name of [owner or operator].
11.
Guarantor
expressly waives notice of acceptance of this guarantee by the Ohio EPA or by
[owner or operator]. Guarantor also expressly waives notice of amendments or
modifications of the facility permit(s) or registration(s) or the scrap tire
transporter registration.
I hereby certify that the wording of
this guarantee is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted on
the date first above written.
Effective date: ______________
[Name of guarantor]
[Authorized signature for
guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
__________ "
(H)
A letter from
the chief financial officer of a local government, as specified in paragraph
(L) of rule
3745-503-05
of the Administrative Code must be worded as follows on forms prescribed by the
director, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted:
[Comment: For the purposes of this
rule, local government is defined as a subdivision of the state of Ohio
including, but not limited to, a municipal corporation, a county, a township, a
single or joint county solid waste management district, or a solid waste
management authority.]
"Letter from chief financial officer of
a local government
[Address to director, Ohio
Environmental Protection Agency.]
I am the chief financial officer of
[name and address of local government]. This letter is in support of this local
government's use of the financial test to demonstrate financial assurance, as
specified in rules adopted under Chapter 3734. of the Revised Code concerning
financial assurance for solid waste facilities or a scrap tire
transporter.
[Fill out the following paragraphs
regarding facilities and scrap tire transporters and the associated cost
estimates. If there are no facilities or scrap tire transporters that belong in
a particular paragraph, write "none" in the space indicated. For each facility
or scrap tire transporter, include its name, address, county, and current
closure, post-closure care, scrap tire transporter closure, or corrective
actions cost estimates, and any other environmental obligations. Identify each
cost estimate as to whether it is for closure, post-closure care, scrap tire
transporter closure, or corrective actions, and all other environmental
obligations.]
(1)
This local government is the owner or operator of the
following facilities or scrap tire transporters for which financial assurance
for closure, post-closure care, scrap tire transporter closure, or corrective
actions is demonstrated through the financial test specified in rules adopted
under Chapter 3734. of the Revised Code concerning financial assurance for
solid waste facilities or a scrap tire transporter or this local government is
the owner or operator of the following facilities for which financial assurance
for any other environmental obligations are assured by a financial test. The
current closure, post-closure care, scrap tire transporter closure, or
corrective actions cost estimates, and any other environmental obligations
provided for by a test are shown: $ ______________ .
(2)
This local
government is the owner or operator of the following facilities or scrap tire
transporter for which financial assurance requirements for closure,
post-closure care, scrap tire transporter closure, corrective actions, or any
other environmental obligations are satisfied through a financial test other
than that required by rules adopted under Chapter 3734. of the Revised Code
concerning financial assurance for solid waste facilities or a scrap tire
transporter. The current closure, post-closure care, scrap tire transporter
closure, or corrective actions cost estimates, or any other environmental
obligations covered by such financial assurance are shown for each facility or
scrap tire transporter: $ ______________ .
The fiscal year of this local
government ends on [month, day]. The figures for the following items marked
with an asterisk are derived from this local government's independently
audited, year-end financial statements for the most recently completed fiscal
year, ended [date]. [Comment: The figures for the following items must be
contained in the audited financial statements from the most recently completed
fiscal year.]
[Fill in Alternative I if the criteria
of paragraph (L)(3)(a) of rule
3745-503-05
of the Administrative Code is used. Fill in Alternative II if the criteria of
paragraph (L)(3)(b) of rule
3745-503-05
of the Administrative Code is used.]
Alternative I
1.
Sum of current
closure, post-closure care, scrap tire transporter closure, or corrective
actions cost estimates, and any other environmental obligations assured by a
financial test (total of all cost estimates shown in the paragraphs above): $
________________ .
2.
Sum of cash and marketable securities: $
____________________ .
3.
Total expenditures: $ _________________________ .
4.
Annual
debt service: $ ________________________ .
5.
Long-term debt: $
___________________________ .
6.
Capital
expenditures: $ ________________________ .
7.
Total assured
environmental costs: $ ______________ .
8.
Total annual revenue: $ __________________
.
Yes No
9.
Is line 2 divided
by line 3 greater than or equal to 0.05 ? . . .
10.
Is line 4
divided by line 3 less than or equal to 0.20 ? . . .
11.
Is line 5
divided by line 6 less than or equal to 2.00 ? . . .
12.
Is line 7
divided by line 8 less than or equal to 0.43 ? . . . If not, complete lines 13
and 14.
13.
Multiply line 8 by 0.43 = $ __________ . This is the
maximum amount allowed to assure environmental costs.
14.
Line 13
subtracted from line 7 = $ __________ . This amount must be assured by another
financial assurance mechanism listed in rules adopted under Chapter 3734. of
the Revised Code concerning financial assurance for solid waste facilities or a
scrap tire transporter.
Alternative II
1.
Sum of current
closure, post-closure care, scrap tire transporter closure, corrective actions
cost estimates, and any other environmental obligations assured by a financial
test (total of all cost estimates shown in the paragraphs above):
$ _______________ .
2.
Current bond rating of most recent issuance and name of rating service:
______________ .
3.
Date of issuance of bond: _______________ .
4.
Date
of maturity of bond: _______________ .
5.
Total assured
environmental costs: $ ______________ .
*6. Total annual revenue: $
______________ .
Yes No
7.
Is line 5 divided
by line 6 less than or equal to 0.43 ? ..... If not, complete lines 8 and
9.
8.
Multiply line 6 by 0.43 = $ _______________________
.This is the maximum amount allowed to assure environmental costs.
9.
Line 8
subtracted from line 5 = $ __________________ .This amount must be assured by
another financial assurance mechanism listed in rules adopted under Chapter
3734. of the Revised Code concerning financial assurance for solid waste
facilities or a scrap tire transporter.
I hereby certify that the wording of
this letter is identical to the wording specified in rules adopted under
Chapter 3734. of the Revised Code concerning financial assurance for solid
waste facilities or a scrap tire transporter as such rules were constituted
shown immediately below. I further certify the following: (1) that the local
government's financial statements are prepared in conformity with generally
accepted accounting principles for governments; (2) that the local government
has not operated at a deficit equal to five per cent or more of total annual
revenue in either of the past two fiscal years; (3) that the local government
is not in default on any outstanding general obligation bonds; and, (4) that
the local government does not have outstanding general obligations rated less
than BBB as issued by "Standard and Poor's" or Baa as issued by
"Moody's."
[Signature]
[Name]
[Title]
[Date]"