Code of Colorado Regulations
1000 - Department of Public Health and Environment
1002 - Water Quality Control Commission (1002 Series)
5 CCR 1002-66 - REGULATION NO. 66 - HCSFO FINANCIAL ASSURANCE CRITERIA REGULATIONS FOR COLORADO HOUSED COMMERCIAL SWINE FEEDING OPERATIONS
Appendix E
Wording for a Performance Guarantee Surety Bond
A surety bond guaranteeing performance of closure, post-closure, and corrective actions as specified, must be worded as follows, except that the instructions in brackets are to be replaced with the relevant information and the brackets deleted.
Performance Bond
Date bond executed: ___________________________________________________________________
Effective date: ________________________________________________________________________
Principal:[legal name and business address of permittee or applicant] ____________________________
____________________________________________________________________________________
____________________________________________________________________________________
Type of organization: [insert "individual" , "joint venture", "partnership", or "corporation"] ______________
____________________________________________________________________________________
State of incorporation: __________________________________________________________________
Surety(ies):[name(s) and business address(es)] _____________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Name, address, and closure costs for each facility guaranteed by this bond (indicate closure costs separately for each facility]: _____________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Total penal sum of bond: $ ______________________________________________________________
Surety's bond number: _________________________________________________________________
Know all persons by these presents, that we, the principal and surety(ies) hereto are firmly bound to the Colorado Department of Public Health and Environment, Water Quality Control Division in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators successors, and assigns jointly and severally; provide that, where the surety(ies) are corporations acting as cosureties, we, the sureties, bind ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each surety binds itself, jointly and severally with the principal, for the payment of such sum only as is set forth opposite the name of such surety, but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.
Whereas said principal is required, under the Colorado regulations pertaining to housed commercial swine feeding operations, to have a permit in order to own or operate each facility identified above, and,
Whereas said principal is required to provide financial assurance for closure, post-closure, and corrective actions, as a condition of the permit; and,
Whereas said principal shall establish a standby trust fund as is required when a surety bond is used to provide such financial assurance, unless an alternate mechanism has been established by the State of Colorado to directly receive monies.
Now, therefore, the conditions of this obligation are such that if the principal shall faithfully perform closure, post-closure, and corrective actions whenever required to do so, of each facility for which this bond guarantees such actions, in accordance with the approved financial assurance plan and other requirements of the permit;
Or, if the principal shall provide alternate financial assurance as specified in these regulations, and obtain the Division's written approval of such assurance, within 90 days after the date notice of cancellation is received by both the principal and the Division from the surety(ies), then this obligation shall be null and void; otherwise it is to remain in full force and effect.
The surety(ies) shall become liable on this bond obligation only when the principal has failed to fulfill the conditions described above.
Upon notification by the Division that the principal has been found in violation of the closure, post-closure, and corrective action requirements of these regulations, for a facility(ies) for which this bond guarantees performances of closure, post-closure, and corrective actions, the surety(ies) shall either perform closure, post-closure, and corrective actions in accordance with the approved financial assurance plan and other permit requirements, or place the closure costs guaranteed for the facility into the standby trust fund as directed by the Division.
Upon notification by the Division that the principal has failed to provide alternate financial assurance that meets the requirements of subsections 61.13 -(iv) of Regulation No. 61, and obtain written approval of such assurance from the Division during the 60 days following receipt by both the principal and the Department of a notice of cancellation of the bond, the surety(ies) shall place funds in the amount guaranteed for the facility(ies) into the standby trust fund as directed by the Division.
The surety(ies) hereby waive(s) notification of amendments to financial assurance plans, permits, applicable laws, statutes, rules, and regulations and agrees that no such amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the surety(ies) shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the surety(ies) hereunder exceed the amount of said penal sum.
The surety(ies) may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the Division provided, however, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the principal and the Division, as evidenced by the return receipts.
The principal may terminate this bond by sending written notice to the surety(ies), provided, however, that no such notice shall become effective until the surety(ies) receive(s) written authorization for termination of the bond by the Division.
In witness whereof, the principal and surety(ies) have executed this performance bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the principal and surety(ies) and that the wording of this surety bond is, at minimum, identical to the wording specified in the Water Quality Control Commission Regulation No. 66 (5 CCR 1002-66) as constituted on the date this bond was executed.
Principal
[Signature(s)]
[Name(s)]
[Title(s)]
[Corporate seal] Corporate Surety(ies)
[Name and address]
State of incorporation:
Liability limit: $
[Signature(s)]
[Name(s) and title(s)]
[Corporate seal]
[For every co-surety, provide signature(s), Corporate seal, and other information in the same manner as for surety above.]
Bond premium: $
