Ohio Admin. Code 3745-55-41 - Definitions
(A) When used in
rules
3745-55-40
to
3745-55-51
of the Administrative Code, the following terms have the FOLLOWING meanings:
(1) "Closure plan" means the plan for closure
prepared in accordance with the requirements of rule
3745-55-12
of the Administrative Code.
(2)
"Current closure cost estimate" means the most recent of the estimates prepared
in accordance with paragraphs (A), (B), and (C) of rule
3745-55-42
of the Administrative Code.
(3)
"Current post-closure care estimate" means the most recent of the estimates
prepared in accordance with paragraphs (A), (B), and (C) of rule
3745-55-44
of the Administrative Code.
(4)
"Parent corporation" means a corporation which directly owns at least fifty per
cent of the voting stock of the corporation which is the facility owner or
operator; the latter corporation is deemed a "subsidiary" of the parent
corporation.
(5) "Post-closure
plan" means the plan for post-closure care prepared in accordance with the
requirements of rules
3745-55-17
to
3745-55-20
of the Administrative Code.
(B) The following terms are used in the
specifications for the financial tests for closure, post-closure care, and
liability coverage. The definitions are intended to assist in the understanding
of these rules and are not intended to limit the meanings of terms in a way
that conflicts with generally accepted accounting practices.
(1) "Assets" means all existing and all
probable future economic benefits obtained or controlled by a particular
entity.
(2) "Current assets" means
cash or other assets or resources commonly identified as those which are
reasonably expected to be realized in cash or sold or consumed during the
normal operating cycle of the business.
(3) "Current liabilities" means obligations
whose liquidation is reasonably expected to require the use of existing
resources properly classifiable as current assets or the creation of other
current liabilities.
(4) "Current
plugging and abandonment cost estimate" means the most recent of the estimates
prepared in accordance with rule
3745-34-36
of the Administrative Code.
(5)
"Independently audited" refers to an audit performed by an independent
certified public accountant in accordance with generally accepted auditing
standards.
(6) "Liabilities" means
probable future sacrifices of economic benefits arising from present
obligations to transfer assets or provide services to other entities in the
future as a result of past transactions or events.
(7) "Net working capital" means current
assets minus current liabilities.
(8) "Net worth" means total assets minus
total liabilities and is equivalent to owner's equity.
(9) "Tangible net worth" means the tangible
assets that remain after deducting liabilities; such assets would not include
intangibles such as good will and rights to patents or royalties.
(1) "Accidental occurrence" means an
accident, including continuous or repeated exposure to conditions, which
results in bodily injury or property damage neither expected nor intended from
the standpoint of the insured.
(2)
"Legal defense costs" means any expenses that an insurer incurs in defending
against claims of third parties brought under the terms and conditions of an
insurance policy.
(3) "Non sudden
accidental occurrence" means an occurrence which takes place over time and
involves continuous or repeated exposure.
(4) Sudden accidental occurrence" means an
occurrence which is not continuous or repeated in nature.
(D) "Substantial business relationship" means
the extent of a business relationship necessary under applicable Ohio law to
make a guarantee contract issued incident to that relationship valid and
enforceable. A "substantial business relationship" must arise from a pattern of
recent or ongoing business transactions, in addition to the guarantee itself,
such that a currently existing business relationship between the guarantor and
the owner or operator is demonstrated to the satisfaction of the director.
Notes
Rule promulgated under: RC Chapter 119.
Rule authorized by: RC 3734.12
Rule amplifies: RC 3734.12
119.032 review date: Exempt
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