Section R. 325.11707 - Escrow fundRule 1707.
(1) The purpose of a continuing cash escrow fund is to be available to the department for immediate repairs, improvements, operations, or maintenance of the public water supply if the owner fails to meet the responsibilities under the act and these rules.(2) The amount of the escrow fund required shall be calculated on the basis of $500.00 per living unit proposed to be served by the public water supply, but in no case shall the escrow fund amount be less than $10,000.00, or exceed $50,000.00.(3) Upon establishment of a written agreement between the privately owned public water supply and the governing body of a city, village, or township which establishes a date certain by which the privately owned public water supply ownership shall be transferred to that governing body, the department may reduce the amount of the required escrow fund.(4) When the ownership of a privately owned public water supply is transferred, the department shall authorize return of the escrow fund and accrued interest to the owner from which the public water supply was transferred.(5) When additional living units are added, a type I public water supply with an established escrow fund shall recalculate the escrow amount based on the sum of existing and proposed number of living units and increase its escrow fund accordingly.Mich. Admin. Code R. 325.11707