7 Del. Admin. Code § 1352-D-13.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 1352-D-13.0 - Local Government Guarantee

13.1 Requirements for Use of Local Government Guarantee to Comply with Financial Responsibility

13.1.1 A local government Owner or Operator may satisfy the requirements of PART D, Section 3.0 by obtaining a guarantee that conforms to the requirements of this Section. The Guarantor shall be either the State in which the local government Owner or Operator is located or a local government having a substantial business relationship with the Owner or Operator and issuing the guarantee as an act incident to that relationship. A local government acting as the Guarantor shall:

13.1.1.1 Demonstrate that it meets the bond rating test requirement of PART D, Section 11.0 and deliver a copy of the completed Chief Financial Officer's letter as contained in PART D, Section 27.0, Form J to the local government Owner or Operator; or

13.1.1.2 Demonstrate that it meets the worksheet test requirements of PART D, Section 12.0 and deliver a copy of the completed Chief Financial Officer's letter as contained in PART D, Section 28.0, Form K to the local government Owner and Operator; or

13.1.1.3 Demonstrate that it meets the local government fund requirements of PART D, subsection 14.1.1.1, PART D, subsection 14.1.1.2 or PART D, subsection 14.1.1.3 and deliver a copy of the completed Chief Financial Officer's letter as contained in PART D Section 31.0, Form Q to the local government Owner and Operator.

13.1.2 If the local government Guarantor is unable to demonstrate financial responsibility under any of the mechanisms in PART D, Section 11.0, PART D, Section 12.0 or PART D, Section 14.0, at the end of the Financial Reporting Year, the Guarantor shall send by verifiable service, before cancellation or non-renewal of the guarantee, notice to the Owner and Operator and to the Department. The guarantee will terminate no less than 120 days after the date the Owner and Operator receives the notification, as evidenced by verifiable service. The Owner or Operator shall obtain alternative coverage as specified in PART D, subsection 17.2.

13.1.3 The guarantee agreement shall be worded as specified in PART D, Section 29.0 Form M, PART D, Section 30.0, Form N, PART D, Section 31.0 Form O or PART D, Section 32.0 Form P, depending on which of the following alternative guarantee arrangements is selected:

13.1.3.1 If, in the default or incapacity of the Owner or Operator, the Guarantor guarantees to fund a standby trust as directed by the Secretary, the guarantee shall be worded as specified in PART D, Section 29.0 Form M or PART D, Section 30.0, Form N.

13.1.3.2 If, in the default or incapacity of the Owner or Operator, the Guarantor guarantees to make payments as directed by the Secretary for taking corrective action or compensating third parties for bodily injury and property damage, the guarantee shall be worded as specified in PART D, Section 31.0 Form O or PART D, Section 32.0 Form P.

13.1.4 If the Guarantor is a State, the local government Guarantee With Standby Trust shall be worded as shown in PART D, Section 29.0 Form M, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.

13.1.5 If the Guarantor is a local government, the local government Guarantee With Standby Trust shall be worded as shown in PART D, Section 30.0 Form N, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.

13.1.6 If the Guarantor is a State, the local government Guarantee Without Standby Trust shall be worded as shown in PART D, Section 31.0 Form O, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.

13.1.7 If the Guarantor is a local government, the local government Guarantee Without Standby Trust shall be worded as shown in PART D, Section 32.0 Form P, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.

13.1.8 A local government Owner or Operator using the local government Guarantee under PART D, Section 13.0, where the Guarantor's demonstration of financial responsibility relies on the bond rating test under PART D, Section 11.0, shall maintain a copy of the Guarantor's bond rating published within the last twelve months by Moody's or Standard & Poor's.

13.1.9 A local government Owner or Operator using the local government Guarantee supported by PART D, Section 14.0, local government Fund, shall maintain a copy of the Guarantor's year-end financial statements for the most recent completed Financial Reporting Year showing the amount of the fund.

7 Del. Admin. Code § 1352-D-13.0

20 DE Reg. 815 (4/1/2017)
27 DE Reg. 536 (1/1/2024) (Final)