Current through Register Vol. 48, No. 3, March 22, 2024
A.
In the event a surety bond will be given to secure the obligation for
reclamation, Form MR-800 will be completed.
B. In the event cash or registered securities
or a savings account assignment will be given to secure the obligation for
reclamation, Form MR-900 will be completed.
C. In the event, cash, registered securities,
or a savings account assignment will be given to secure the obligation for
reclamation, Form MR-1000 must also be completed. All registered securities
must be assigned and registered to the State of South Carolina. Savings
accounts must be issued jointly in the name of the operator and State of South
Carolina.
D. In the event an
irrevocable letter of credit will be given to secure the obligation for
reclamation, Form MR-1050 will be completed.
E. The following items will be verified by
the Department to determine the acceptability of a letter of credit:
(1) The letter of credit must be issued by a
financial institution which is federally insured and must be issued or
confirmed through a South Carolina institution with a minimum asset value of
fifty million ($50,000,000) dollars.
(2) The document must be immediately payable
on demand by and to the State of South Carolina in the full amount of the
required bond.
(3) The letter of
credit must be accompanied by power of attorney granting the Department full
power to assign, appropriate, apply or transfer the deposit or any portion
thereof, for the satisfaction of any damages, assessments, late payment
charges, penalties, or deficiencies arising out of any default in the
performance of the terms covered by the bond.
(4) The letter of credit must contain a
clause providing that, in the absence of notice from the financial institution
to the Department at least 90 days prior to the stated or any extended
expiration date not to renew the credit represented by the letter of credit,
the letter of credit will be automatically renewed in full force and effect for
an additional one year period.
(5)
The letter of credit must authorize the Department to exercise the right to
collect the full amount of credit from the financial institution in the event
of either (1) a default occurring prior to the expiration date (including any
extended date) or (2) failure of the operator to furnish an acceptable
substitute bond at least 30 days prior to the expiration of the letter of
credit if the financial institution gives proper 90 day notice of intent not to
renew the letter of credit.
