7 Del. Admin. Code § 1352-D-6.0

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

Section 1352-D-6.0 - Guarantee

6.1 Requirements for Use of Guarantee to Comply with Financial Responsibility

6.1.1 An 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 must be a business entity that:

6.1.1.1 Possesses a controlling interest in the Owner or Operator; or

6.1.1.2 Possesses a controlling interest in a firm that has a controlling interest in the Owner or Operator; or

6.1.1.3 Is an affiliate which is controlled through stock ownership by a common parent firm that possesses a controlling interest in the Owner or Operator; or

6.1.1.4 Is engaged in a Substantial Business Relationship with the Owner or Operator and is issuing the guarantee as an act incident to that business relationship.

6.1.2 The Guarantor shall:

6.1.2.1 Comply with PART D, Section 5.0; and

6.1.2.2 Complete PART D, Section 22.0, Form B, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted; and

6.1.2.3 Submit the completed PART D, Section 22.0, Form B to the Department together with their submission under PART D, Section 5.0; and

6.1.2.4 Provide the Owner or Operator with copies of their submissions under PART D, subsection 6.1.2.1 and PART D, subsection 6.1.2.3.

6.1.3 If the Guarantor fails to meet the requirements of the financial test at the end of any Financial Reporting Year, within 120 days of the end of that 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 subsection 17.2.

6.1.4 If the Department notifies the Guarantor that he no longer meets the requirements of PART D subsection 5.1.1.1, the Guarantor shall notify the Owner and Operator by Verifiable Service within 10 days of receiving such notification from 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.

6.1.5 The Owner or Operator who uses a guarantee to satisfy the requirements of PART D Section 3.0 shall also establish a standby trust fund at the same time that the guarantee is obtained. Under the terms of the guarantee, all amounts paid by the Guarantor under the guarantee will be deposited directly into the standby trust fund in accordance with instructions from the Department under PART D, Section 18.0. This standby trust fund shall meet the requirements specified in PART D, Section 15.0.

6.1.6 An Owner or Operator may use a guarantee to establish financial responsibility only if the State's Attorney General has submitted a written statement to the Department that a guarantee executed as described in this Section is a legally valid and enforceable obligation in the State of Delaware.

7 Del. Admin. Code § 1352-D-6.0

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