Indiana Administrative Code
Title 329 - SOLID WASTE MANAGEMENT DIVISION
Article 3.1 - HAZARDOUS WASTE MANAGEMENT PERMIT PROGRAM AND RELATED HAZARDOUS WASTE MANAGEMENT
Rule 14 - Financial Requirements for Owners and Operators of Interim Status Hazardous Waste Treatment, Storage, and Disposal Facilities
Section 14-38 - Wording of instrument; surety bond for liability coverage
Current through March 20, 2024
Authority: IC 13-14-8; IC 13-22-2; IC 13-22-8-1; IC 13-22-9-7
Affected: IC 13-22
Sec. 38.
A surety bond, as required in section 24(i) of this rule or 329 IAC 3.1-15-8(h) (see 329 IAC 3.1-15-10(l)), must be worded as follows except that the instructions in brackets are to be replaced with the relevant information and the brackets deleted: Payment Bond
Surety Bond No. [insert number]
Parties: [insert name and address of owner or operator], Principal, incorporated in [insert state of incorporation] of [insert city and state of Principal's place of business] and [insert name and address of Surety Company or Companies], Surety Company or Companies, of [insert Surety's or Sureties' place of business].
U.S EPA identification number, name, and address for each facility guaranteed by this bond:________________
For Sudden Accidental Occurrences:
Penal Sum Per Occurrence: [insert amount]
Annual Aggregate: [insert amount]
For Nonsudden Accidental Occurrences:
Penal Sum Per Occurrence: [insert amount]
Annual Aggregate: [insert amount]
Purpose: This is an agreement between the Surety or Sureties and the Principal under which the Surety or Sureties, its successors and assignees, agree to be responsible for the payment of claims against the Principal for bodily injury, property damage, or bodily injury and property damage to third parties caused by ["sudden", "nonsudden", or "sudden and nonsudden"] accidental occurrences arising from operations of the facility or group of facilities in the sums prescribed herein and subject to the governing provisions and the following conditions:
Governing provisions as follows:
1. Section 3004 of the Resource Conservation and Recovery Act (RCRA) of 1976, as amended by the Hazardous and Solid
Waste Amendments of 1984, as amended, 42 U.S.C. Section 6901, et seq.
2. 329 IAC 3.1-14-24, 329 IAC 3.1-15-8, or 329 IAC 3.1-14-24 and 329 IAC 3.1-15-8.
Conditions as follows:
1. The Principal is subject to the applicable governing provisions that require the Principal to have and to maintain liability coverage for bodily injury and property damage to third parties caused by ["sudden", "nonsudden", or "sudden and nonsudden"] accidental occurrences arising from operations of the facility or group of facilities. Such obligation does not apply to any of the following:
This exclusion applies whether [insert Principal] may be liable as an employer or in any other capacity and applies to any obligation to share damages with or repay another person who shall pay damages because of the injury to persons identified in this paragraph.
2. This bond assures that the Principal will satisfy valid third party liability claims as described in condition 1.
3. If the Principal fails to satisfy a valid third party liability claim, as described above, the Surety or Sureties becomes liable on this bond obligation.
4. The Surety or Sureties shall satisfy a third party liability claim only upon the receipt of one (1) of the following documents, either (a) or (b):
Certification of Valid Claim
The undersigned, as parties [insert name of Principal] and [insert name and address of third party claimant or claimants], hereby certify that the claim of bodily injury, property damage, or bodily injury and property damage caused by a ["sudden" or "nonsudden"] accidental occurrence arising from operating [Principal's] hazardous waste treatment, storage, or disposal facility must be paid in the amount of [in words] U.S. dollars $________.
[Signature]
Principal___________________________________
[Notary]
Date____________________________________________
[Signature or signatures]
Claimant or claimants_________________________________
[Notary]
Date__________________________________________.
5. In the event of the combination of this bond with another mechanism for liability coverage, this bond will be considered [insert "primary" or "excess"] coverage.
6. The liability of the Surety or Sureties must not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments will amount in the aggregate to the penal sum of the bond. In no event must the obligation of the Surety or Sureties hereunder exceed the amount of said annual aggregate penal sum, provided that the Surety or Sureties furnishes notice to the commissioner of the Indiana Department of Environmental Management (IDEM) forthwith of all claims filed and payments made by the Surety or Sureties under this bond.
7. The Surety or Sureties may cancel the bond by sending notice of cancellation by certified mail to the IDEM commissioner provided, however, that cancellation must not occur during the one hundred twenty (120) days beginning on the date of receipt of the notice of cancellation by the Principal and the IDEM commissioner, as evidenced by the return receipt.
8. The Principal may terminate this bond by sending written notice to the Surety or Sureties and to the IDEM commissioner. 9. The Surety or Sureties hereby waives notification of amendments to applicable laws, statutes, rules, and regulations and agrees that no such amendment must in any way alleviate its obligation on this bond.
10. This bond is effective from [insert date], 12:01 a.m., standard time, at the address of the Principal as stated herein and must continue in force until terminated as described above.
In Witness Whereof, the Principal and Surety or Sureties have executed this 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 or Sureties and that the wording of this surety bond is identical to the wording specified in 329 IAC 3.1-1438 as such rule was constituted on the date this bond was executed.
PRINCIPAL
[Signature or signatures]
[Name or names]
[Title or titles]
[Corporate seal]
CORPORATE SURETY OR SURETIES
[Name and address]
State of incorporation:____________________________________
Liability limit: $___________________________________________
[Signature or signatures]
[Name or names and title or titles]
[Corporate seal]
[For every co-surety, provide signature or signatures and other information in the same manner as for Surety above.]
Bond premium: $_______________________________________
(Note: The corporate seal is not required by Indiana law)
