Section 287.322. General terms and conditions for collateral bonds

(a) The operator shall execute the collateral bond.

(b) The operator shall submit a collateral bond with one or more of the following types of collateral acceptable to the Department:

(1) Cash.

(2) Certified checks, cashier’s checks or treasurer’s checks which are issued, drawn on or certified by state-chartered or national financial institutions chartered or authorized to conduct the business of banking in the United States, and which are examined by a State or Federal agency.

(3) Automatically renewable and assignable certificates of deposit from state-chartered or National financial institutions chartered or authorized to conduct the business of banking in the United States and which are examined by a State or Federal agency.

(4) Automatically renewable, irrevocable stand-by letters of credit from state-chartered or National financial institutions chartered or authorized to conduct the business of banking in the United States and which are examined by the State or Federal agency.

(5) Negotiable bonds of the United States Government, the Commonwealth, the Turnpike Commission, the General State Authority, the State Public School Building Authority or a municipality in this Commonwealth.

(c) The Department will place collateral submitted under this subchapter with the Treasurer, who shall be responsible for its custody and safekeeping until released or collected and deposited in the Solid Waste Abatement Fund by the Department under this chapter.

(d) Collateral shall be in the name of the operator, and shall be pledged and assigned to the Department clear of claims or rights. The pledge or assignment will vest in the Department a property interest in the collateral which will remain until release under the terms of this subchapter, and will not be affected by the bankruptcy, insolvency or other financial incapacity of the operator.

(e) The Department will ensure its ownership interest in collateral posted on a bond under this section such that the collateral is readily available to the Department upon forfeiture of the bond. The Department may require proof of ownership or enter into other agreements it determines necessary to ensure its ownership interest is fully protected and may take actions under the law as it deems necessary to protect the ownership interest.

Notation

Cross References

This section cited in 25 Pa. Code § 287.313 (relating to form, terms and conditions of the bond).