2023 Indiana Code › Title 14. Natural and Cultural Resources › Article 34. Surface Coal Mining and Reclamation › Chapter 7. Self-Bonding › 14-34-7-4. "Current Assets" Defined

Sec. 4. (a) As used in this section, "current assets" means cash or other assets or resources that are reasonably expected to be converted to cash or sold or consumed within:
(1) one (1) year; or
(2) the normal operating cycle of the business.
(b) As used in this section, "current liabilities" means:
(1) obligations that are reasonably expected to be paid or liquidated within one (1) year or within the normal operating cycle of the business; plus
(2) dividends payable on preferred stock within:
(A) one (1) quarter, if declared; or
(B) one (1) year, if a pattern of declaring dividends each quarter is apparent from past business practice.
(c) As used in this section, "fixed assets" means plants and equipment. The term does not include land or coal in place.
(d) Subject to subsection (f), the director may accept a self-bond from an applicant for a permit if all of the following conditions are met by the applicant or the applicant's corporate guarantor at the time the self-bond is accepted:
(1) The applicant designates a suitable agent to receive service of process in Indiana.
(2) The applicant has been in continuous operation as a business entity for at least five (5) years immediately preceding the time of application.
(A) The director may allow a joint venture or syndicate with less than five (5) years of continuous operation to qualify under this requirement if each member of the joint venture or syndicate has been in continuous operation for at least five (5) years immediately preceding the time of application.
(B) When calculating the period of continuous operation, the director may exclude periods of interruption to the operation of the business entity that:
(i) were beyond the applicant's control; and
(ii) do not affect the applicant's likelihood of remaining in business during the proposed surface coal mining and reclamation operations.
(3) The applicant is not subject to any outstanding cessation order issued under IC 13-4.1-11-5 (before its repeal), IC 14-34-15-6, or the Surface Mining Control and Reclamation Act.
(4) The applicant does not owe any civil penalties under IC 13-4.1-12 (before its repeal), IC 14-34-16, or the Surface Mining Control and Reclamation Act.
(5) The applicant does not owe any fees under this article, IC 13-4.1 (before its repeal), or the Surface Mining Control and Reclamation Act, and is not delinquent in the payment of any fees or civil penalties.
(6) The applicant's permit has never been suspended under this article or IC 13-4.1 (before its repeal), and the applicant is not listed on the Applicant Violator System (AVS).
(7) The applicant submits financial information in sufficient detail to demonstrate that the applicant satisfies at least one (1) of the following criteria:
(A) The applicant has a current rating for the applicant's most recent bond issuance of "A" or higher as issued by:
(i) Moody's Investor Service; or
(ii) Standard and Poor's Corporation.
The applicant must identify the rating service used by the applicant and provide any additional relevant information concerning how the service arrived at the specific ratings.
(B) The applicant has the following:
(i) A tangible net worth of at least ten million dollars ($10,000,000).
(ii) A ratio of total liabilities to net worth of not more than 2.5:1.
(iii) A ratio of current assets to current liabilities of at least 1.2:1.
The ratio requirements set forth in this clause must be met for the year immediately preceding the application, and must be documented for the four (4) years preceding the application. An explanation shall be included for any year in which the ratios of the applicant did not meet the requirements set forth in this clause. The failure of an applicant to meet the ratio requirements set forth in this clause for any of the four (4) years preceding the application does not necessarily disqualify an applicant for self-bonding under this chapter.
(C) The applicant has the following:
(i) Fixed assets in the United States that total at least twenty million dollars ($20,000,000).
(ii) A ratio of total liabilities to net worth of not more than 2.5:1.
(iii) A ratio of current assets to current liabilities of at least 1.2:1.
The ratio requirements set forth in this clause must be met for the applicant's fiscal year immediately preceding the application, and must be documented for the four (4) years preceding the application. An explanation shall be included for any year in which the ratios of the applicant did not meet the requirements set forth in this clause. The failure of an applicant to meet the ratio requirements set forth in this clause for any of the four (4) years preceding the application does not necessarily disqualify an applicant for self-bonding under this chapter.
(8) The applicant submits the following:
(A) Financial statements for the most recently completed fiscal year accompanied by a report prepared by an independent certified public accountant:
(i) in conformity with generally accepted accounting principles; and
(ii) containing the accountant's audit opinion or review opinion of the financial statements with no adverse opinion.
(B) Unaudited financial statements for completed quarters in the current fiscal year.
(C) Comparative financial data from a five (5) year period, that must include a comparative income statement and a comparative balance sheet.
(D) A statement listing:
(i) every lien filed against any assets of the applicant in any jurisdiction in the United States for an amount that is more than two percent (2%) of the applicant's net worth;
(ii) every action pending against the applicant;
(iii) every judgment rendered against the applicant within the seven (7) years preceding the application that remains unsatisfied and for an amount that is more than two percent (2%) of the applicant's net worth; and
(iv) any petitions or actions in bankruptcy against the applicant, including actions for reorganization.
(E) Additional unaudited information requested by the director.
(e) If an applicant submits financial information to demonstrate that the applicant satisfies the criteria set forth in subsection (d)(7)(B) or (d)(7)(C), the two (2) ratios set forth in subsection (d)(7)(B) or (d)(7)(C) shall be calculated with the proposed self-bond amount included in the current liabilities or total liabilities for the year of the application. The operator may deduct from the total liabilities the costs currently accrued for reclamation that appear on the balance sheet current in the year of the application.
(f) Notwithstanding subsection (d)(7), the director may not accept a self-bond from an applicant unless the financial ratios of the applicant are at least as favorable as those listed for the medium performers in the Dun and Bradstreet listing of Industry Norms and Key Business Ratios.
(g) Each lien, action, and petition listed under subsection (d)(8)(E) must be identified by the named parties, the jurisdiction in which the matter was filed, the case number, and the final disposition or the current status of any action still pending.
[Pre-1995 Recodification Citations: 13-4.1-6.3-2; 13-4.1-6.3-3; 13-4.1-6.3-4; 13-4.1-6.3-8.]
As added by P.L.1-1995, SEC.27. Amended by P.L.176-1995, SEC.13.