25 Pa. Code § 263a.32 - Bonding
(a) A collateral
bond means an indemnity agreement in a certain sum payable to the Department
executed by the licensee and which is supported by the deposit with the
Department of cash, negotiable bonds of the United States of America, the
Commonwealth of Pennsylvania, the Turnpike Commission, the General State
Authority, the State Public School Building Authority or a Commonwealth
municipality, or an irrevocable letter of credit of any bank organized or
authorized to transact business in the United States.
(b) A new, revised or renewed license to
transport hazardous waste may not be issued by the Department before the
applicant for a license has filed a collateral bond payable to the Department
on a form provided or approved by the Department, and the bond is approved by
the Department.
(c) The bond shall
be in an amount sufficient to assure that the licensee faithfully performs the
requirements of the act, the regulations promulgated thereunder, the terms and
conditions of the license and any Department order issued to the licensee, but
a minimum of $10,000.
(d) Liability
under the bond shall continue at a minimum for the duration of the license, any
renewal thereof and for a period of 1 year after expiration, termination,
revocation or surrender of the license. The 1-year extended period of liability
shall include, and shall be automatically extended for, additional time during
which administrative or legal proceedings are pending involving a violation by
the transporter of the act, regulations promulgated thereunder, the terms or
conditions of a license or a Department order.
(e) The Department may require additional
bond amounts at any time if the methods of transporting wastes change, the
kinds of wastes transported change or the Department determines the additional
bond amounts are necessary to guarantee compliance with the act, regulations,
the terms and conditions of the license or a Department order.
(f) Collateral bonds are subject to the
following conditions:
(1) The Department will
obtain possession of and keep in custody all collateral deposited by the
licensee until authorized for release as provided in this section.
(2) The Department will value collateral at
its current market value.
(3)
Collateral shall be in the name of the licensee, not in the name of third
parties and shall be pledged and assigned to the Department free and clear of
claims.
(g) Letters of
credit are subject to the following conditions:
(1) The letter may only be issued by a bank
organized or authorized to do business in the United States.
(2) Letters of credit are irrevocable. The
Department may accept a letter of credit not revocable for a term of 3 years
if:
(i) The letter of credit is automatically
renewable for additional terms, unless the bank gives at least 90 days prior
written notice to the Department of its intent to terminate the credit at the
end of the current term.
(ii) The
Department has the right to draw upon the credit before the end of its term and
convert it into a cash collateral bond if the licensee fails to replace the
letter of credit with other acceptable collateral within 30 days of the bank's
notice to terminate the credit.
(3) The letter of credit shall be payable to
the Department in part or in full upon demand of the Department in the case of
a forfeiture or the failure of the owner or operator to replace the letter of
credit as provided in this section.
(4) The Department will not accept letters of
credit from a bank for a licensee in excess of 10% of the bank's capital
surplus account as shown on a balance sheet certified by a certified public
accountant.
(5) Letters of credit
are subject to the Uniform Customs and Practice for Documentary Credits,
International Chamber of Commerce Publication No. 290, including amendments and
successor publications.
(6) Letters
of credit provide that the bank will give prompt notice to the licensee and the
Department of a notice received or action filed alleging the insolvency or
bankruptcy of the bank or alleging violations of regulatory requirements that
could result in suspension or revocation of the bank's charter or license to do
business.
(h) Upon the
incapacity of a bank by reason of bankruptcy, insolvency or suspension or
revocation of its charter or license, the licensee is deemed to be without
collateral bond coverage in violation of §
263a.13 (relating to licensing).
The Department will issue a notice of violation against a licensee who is
without bond coverage. The notice shall specify a reasonable period to replace
bond coverage, not to exceed 90 days.
(i) Bonds not declared forfeit in accordance
with subsection (j) are released to the licensee 1 year after expiration,
termination, revocation or surrender of the license.
(j) The Department will declare forfeit all a
licensee's bonds if the Department finds that the licensee violated any
requirements of the act, this article, terms and conditions of a license or a
Department order issued to the licensee when the Department finds that the
licensee failed to remedy a violation promptly.
(k) Remedies provided in law for violation of
the act, this article or the conditions of the license, are expressly
preserved. Nothing in this section may be construed as an exclusive penalty or
remedy for the violations of law. An action taken under this chapter does not
waive or impair another remedy or penalty provided in law.
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