Section 78.305. Terms and conditions for collateral bonds—general

(a) Collateral documents shall be executed by the owner or operator.

(b) The market value of collateral deposited shall be at least equal to the required bond amount with the exception of United States Treasury Zero Coupon Bonds which shall have a maturity date of not more than 10 years after the date of purchase and at maturity a value of at least $25,000.

(c) Collateral shall be pledged and assigned to the Department free from claims or rights. The pledge or assignment shall vest in the Department a property interest in the collateral which shall remain until release as provided by law and is not affected by the bankruptcy, insolvency or other financial incapacity of the operator.

(d) The Department’s ownership rights to deposited collateral shall be such that the collateral is readily available to the Department upon forfeiture. The Department may require proof of ownership, and other means, such as secondary agreements, as it deems necessary to meet the requirements of this subchapter. If the Department determines that deposited collateral does not meet the requirements of this subchapter, it may take action under the law to protect its interest in the collateral.

The provisions of this § 78.305 adopted July 28, 1989, effective July 29, 1989, 19 Pa.B. 3229; amended December 16, 1994, effective December 17, 1994, 24 Pa.B. 6284. Immediately preceding text appears at serial page (138865).

Notation

Cross References

This section cited in 25 Pa. Code § 78.303 (relating to form, terms and conditions of the bond).