Current through Register Vol. 54, No.43, October 26, 2024
Section 272.102 - Trust requirements(a) A trust fund established under section 1108 of the Municipal Waste Planning, Recycling and Waste Reduction Act (53 P. S. § 4000.1108) shall meet the following requirements:(1) The trustee shall be a state-chartered or National bank, or financial institution with trust powers or trust company with offices in this Commonwealth and whose trust activities are examined or regulated by a state or Federal agency. The trustee shall have an office located in the county establishing the trust fund. (i) The trustee may resign by sending written notice to the Department, the county and the operator of the municipal waste landfill, by certified mail, return receipt requested, of its intention to resign. The resignation may not take effect until the following conditions have been met: (A) The expiraiton of a 120-day period after the trustee has provided written notice of its intention to resign.(B) The county has appointed a successor trustee and the successor trustee accepts the appointment.(ii) If the county fails to appoint a successor trustee or a successor trustee fails to accept the appointment at the expiration of the 120-day period, the trustee may apply to a court of competent jurisdiction for instructions.(2) The trust shall provide that the operator of the municipal waste landfill and the Department are co-beneficiaries under the trust. The trust may not be subject to assignment, alienation, pledge, attachment, garnishment, sequestration, other legal process or to the claims of creditors.(3) The trust shall be irrevocable.(4) The corpus of the trust fund shall consist of moneys paid by the operator of the municipal waste landfill for waste received at the landfill until January 1, 2000, under former section 1108(c) of the Municipal Waste Planning, Recycling and Waste Reduction Act. The payments are computed on the basis of 25¢ per ton, or part thereof, of weighed waste or 25¢ per 3 cubic yards, or part thereof, of measured waste for solid waste received at the landfill for the quarter for which payment was due to be made.(5) The trustee shall send the Department, in writing on a quarterly basis, a statement of the trust account transactions.(b) The trustee is authorized to invest and reinvest the principal and income of the trust fund and keep the fund invested as a single fund, without distinction between principal and income. In investing, reinvesting and otherwise managing the trust fund, the trustee shall discharge its duties solely in the interest of the beneficiaries. The trustee shall manage the trust fund with that degree of judgement, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with these matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds, considering the probable income to be derived therefrom as well as the probable safety of their capital.(c) For the purposes of investing or reinvesting the moneys in the trust fund, the trustee is authorized to:(1) Purchase United States Treasury Bills.(2) Purchase short-term obligations of the United States Government or its agencies or instrumentalities.(3) Purchase obligations of the United States or of its agencies or instrumentalities backed by the full faith and credit of the United States.(4) Purchase obligations of the Commonwealth or its agencies or instrumentalities backed by the full faith and credit of the Commonwealth.(5) Purchase obligations of a political subdivision of this Commonwealth or its agencies or instrumentalities backed by the full faith and credit of the political subdivision.(6) Purchase shares of an investment company registered under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1-80 a64), whose shares are registered under the Securities Act of 1933 (15 U.S.C.A. §§ 77a-77aa) if the only investments of the investment company are those described in this subsection.(7) Time or demand deposits of the trustee to the extent insured by an agency of the Federal or State Government.(d) Additional options of the trustee are listed in this subsection. (1) The trustee may purchase commercial paper and prime commercial paper defined as follows: (i) Commercial paper means unsecured promissory notes issued at a discount from par by an industrial, common carrier, public utility or finance company.(ii) Prime commercial paper means notes issued by corporations whose credit has been approved by the National Credit Office, Inc., New York, or its successor.(2) The trustee may not purchase commercial paper without first obtaining the following: (i) Certification or other evidence the commercial paper is rated prime by the National Credit Office, Inc., or its successor.(ii) Certification or other evidence the commercial paper proposed to be delivered is not subordinate to another debt of the issuer.(iii) Certification or other evidence there is no litigation pending or threatened that would affect the commercial paper.(iv) Certification or other evidence that the issuer is not in default as to payment of principal and interest on one or more of its outstanding obligations.(v) Certification or other evidence the issuer is incorporated in the United States, is transacting business within the United States and has assets of $1 billion or more, or is a wholly owned subsidiary of a Pennsylvania corporation which has assets of $1 billion or more.(e) The trustee is authorized to hold cash awaiting investment or distribution for a reasonable period of time without liability for the payment of interest thereon.(f) The trustee shall annually, at least 30 days prior to the anniversary date of the establishment of the trust fund, furnish to the operator, the county and the Department a statement confirming the value of the trust fund, and the dates and amounts of any payments into the trust from the landfill and withdrawals for administration or a purpose other than investment or reinvestment. The trustee shall value securities in the trust fund at the lesser of market or par value as of no more than 60 days prior to the anniversary date.The provisions of this §272.102 amended December 22, 2000, effective 12/23/2000, 30 Pa.B. 6685. This section cited in 25 Pa. Code § 272.103 (relating to failure to make quarterly payment).