Administrative Rules of Montana
Department 17 - ENVIRONMENTAL QUALITY
Chapter 17.86 - ENERGY
Subchapter 17.86.1 - Wind Generation Facility Decommissioning and Bonding
Rule 17.86.120 - CERTIFICATES OF DEPOSIT
Universal Citation: MT Admin Rules 17.86.120
Current through Register Vol. 6, March 22, 2024
(1) An owner may satisfy the bonding requirements of this subchapter by submitting proof acceptable to the department that the certificate of deposit (CD):
(a) was issued by a single institution in a
denomination not in excess of $250,000, or the maximum insurable amount as
determined by the Federal Deposit Insurance Corporation (FDIC), whichever is
less. The department may not accept a combination of CDs from an owner in
excess of that limit from a single institution. If the issuing institution uses
a system in which the issuing institution serves as custodian for the payees of
multiple CDs and arranges for one or more additional institutions to issue CDs
not in excess of each institution's FDIC limit, and submits those CDs to the
department with proof determined acceptable to the department that the issued
CDs are insured by the FDIC, the department may accept those CDs;
(b) is automatically renewable annually on
the CD's anniversary date;
(c) in
combination with all CDs, is in a sufficient amount to ensure that funds in the
amount of the bond required in this subchapter will be paid to the department
by the issuing bank if the department forfeits the bond and liquidates the CDs
before maturity;
(d) is payable to
the owner and the department, and the owner has assigned its interest in the CD
to the department, both in writing and in the records of the bank issuing the
CD;
(e) expressly prohibits the
owner from withdrawing funds until the department has released the CD and
assignment; and
(f) waives all
rights of the issuer to a setoff or lien against the CDs.
AUTH: 75-26-310, MCA; IMP: 75-26-304, MCA
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