7 Del. Admin. Code § 1352-D-25.0
SURETY BOND
Date bond executed: _________________________________________________________
Period of Coverage: _________________________________________________________
Principal: [legal name and business address of Owner or Operator] ___________________
__________________________________________________________________________
__________________________________________________________________________
Type of organization: [insert "individual," "joint venture," "partnership," or "corporation"]
___________________________________________________________________________
State of incorporation (if applicable): _____________________________________________
Surety(ies): [name(s) and business address(es)] _____________________________________
____________________________________________________________________________
Scope of Coverage:
List for each Facility: the name and address of the Facility where ASTs assured by this Surety are located, and indicate which ASTs are assured by this Surety. List each AST by the AST identification number provided in the registration form submitted pursuant to Part A of this regulation.
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
List the coverage guaranteed by the bond: ["taking Corrective Action" and/or "compensating third parties for Bodily Injury and Property Damage"] caused by Accidental Releases arising from operating the AST.
Penal sums of bond: Per Occurrence $________________
Annual Aggregate $________________
Surety's bond number: _________________________________________
Know all Persons by these presents, that we, the Principal and Surety(ies), hereto are firmly bound to the Department, in the above penal sums 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 sums 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 sums 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 sums.
Whereas said Principal is required under 7 Del.C. Ch. 74A, as amended, to provide financial responsibility for [insert: "taking Corrective Action" and/or "compensating third parties for Bodily Injury and Property Damage"] caused by Accidental Releases; (if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location) arising from operating the ASTs identified above, and
Whereas said Principal shall establish a standby trust fund as is required when a surety bond is used to provide such financial responsibility;
Now, therefore, the conditions of the obligation are such that if the Principal shall faithfully ["take Corrective Action, in accordance with PART E of this regulation and the Department's instructions for, compensate injured third parties for Bodily Injury and Property Damage caused by Accidental Releases arising from operating the tank(s) identified above,] or if the Principal shall provide alternate financial responsibility, as specified in PART D of this regulation, within 120 days after the date the notice of cancellation is received by the Principal from the Surety(ies), then this obligation shall be null and void; otherwise it is to remain in full force and effect.
Such obligation does not apply to any of the following:
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 Department that the Principal has failed to ["take Corrective Action, in accordance with PART E of this regulation and the Department's instructions," and/or "compensate injured third parties"] as guaranteed by this bond, the Surety(ies) shall either perform ["Corrective Action in accordance with PART E of this regulation and the Department's instructions," and/or "third-party liability compensation"] or place funds in an amount up to the Annual Aggregate penal sum into the standby trust fund as directed by the Department under PART D, Section 18.0 of this regulation.
Upon notification by the Department that the Principal has failed to provide alternate financial assurance responsibility within 60 Days after the date the notice of cancellation is received by the Principal from the Surety(ies) and that the Department has determined or suspects that a Release has occurred, the Surety(ies) shall place funds in an amount not exceeding the Annual Aggregate penal sum into the standby trust fund as directed by the Department under PART D, Section 18.0 of this regulation.
The Surety(ies) hereby waive(s) notification of amendments to 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 Annual Aggregate to the penal sum shown on the face of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed the amount of said Annual Aggregate penal sum.
The Surety(ies) may cancel the bond by sending notice of cancellation by certified mail to the Principal, provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by the Principal, as evidenced by the return receipt.
The Principal may terminate this bond by sending written notice to the Surety(ies).
In witness thereof, the Principal and Surety(ies) have executed this 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 Part D, Section 25.0 Form E of the Delaware Regulations Governing Aboveground Storage Tanks as such Regulations were constituted on the date this bond was executed.
PRINCIPAL:
Signature(s): ______________________________________________________________
Name(s): ______________________________________________________________
Print legibly or type
Title(s): ______________________________________________________________
Print legibly or type
[Corporate seal]
CORPORATE SURETY(IES)
Name and address: _________________________________________________________
Print legibly or type
__________________________________________________________________________
State of Incorporation:________________________________________________________
Print legibly or type
Liability limit: $_______________________________________________________
Print legibly or type
Signature(s):
Name(s) and title(s):
[Corporate seal]
[For every co-surety, provide signature(s), corporate seal, and other information in the same manner as for Surety above.]
Bond Premium: $____________________________________________________________
7 Del. Admin. Code § 1352-D-25.0
27 DE Reg. 536 (1/1/2024) (Final)