7 Del. Admin. Code § 1352-D-8.0

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

Section 1352-D-8.0 - Surety Bond

8.1 Requirements for Use of Surety Bond to Comply with Financial Responsibility

8.1.1 An Owner or Operator may satisfy the requirements of PART D, Section 3.1, by obtaining a surety bond that conforms to the requirements of this Section. The surety company issuing the bond must be among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the U.S. Department of the Treasury.

8.1.2 The surety bond shall be worded as shown in PART D, Section 24.0, Form E, except that instructions in brackets shall be replaced with the relevant information and the brackets deleted.

8.1.3 Under the terms of the bond, the surety will become liable on the bond obligation when the Owner or Operator fails to perform as guaranteed by the bond. In all cases, the surety's liability is limited to the levels of financial responsibility required by PART D, Section 3.0.

8.1.4 The Owner or Operator who uses a surety bond to satisfy the requirements of PART D, Section 3.0 shall also establish a standby trust fund when the surety bond is acquired. Under the terms of the bond, all amounts paid by the surety under the bond will be deposited directly into the standby trust fund in accordance with instructions from the Secretary under PART D, Section 18.0. This standby trust fund shall meet the requirements specified in PART D, Section 15.0.

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

8.1.6 The surety(ies) company may cancel the bond by sending notice of cancellation to the Owner and Operator and the Department by Verifiable Service, provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by the Owner and Operator as evidenced by Verifiable Service. The Owner or Operator shall obtain alternative coverage as specified in PART D, subsection 17.2.

8.1.7 If the Department notifies the Owner or Operator that the surety(ies) company no longer meets the requirements of this Section, the Owner or Operator shall obtain alternative coverage as specified in PART D, subsection 17.2.

7 Del. Admin. Code § 1352-D-8.0

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