Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 280.1 - UNDERGROUND STORAGE TANKS › Subchapter 8 - FINANCIAL RESPONSIBILITY › Section 11-280.1-98 - Surety bond

Current through June, 2024
(a) An owner or operator may satisfy the
				  requirements of section 11-280.1-93 by obtaining a surety bond that conforms to
				  the requirements of this section. The surety company issuing the bond must be
				  among those listed as acceptable sureties on federal bonds in the latest
				  Circular 570 of the U.S. Department of the Treasury.
(b) The surety bond must be worded as
				  follows, except that instructions in brackets must be replaced with the
				  relevant information and the brackets deleted:
PERFORMANCE BOND
Date bond executed:
Period of coverage:
Principal: [legal name and business address of owner or
					 operator]
Type of organization: [insert: "individual", "joint
					 venture", "partnership", or "corporation"]
State of incorporation (if applicable):
Surety(ies): [name(s) and business address(es)]
Scope of Coverage: [List the number of tanks at each
					 facility and the name(s) and address(es) of the facility(ies) where the tanks
					 are located. If more than one instrument is used to assure different tanks at
					 any one facility, for each tank covered by this instrument, list the tank
					 identification number provided in the notification submitted pursuant to
					 section
					 342L-30,
					 Hawaii Revised Statutes, or
					 40 C.F.R. section
					 280.22, or in the permit applications
					 submitted under sections 11-280.1-324 and 11-280.1-326, Hawaii Administrative
					 Rules, and the name and address of the facility. List the coverage guaranteed
					 by the bond: "taking corrective action" and/or "compensating third parties for
					 bodily injury and property damage caused by" either "sudden accidental
					 releases" or "nonsudden accidental releases" or "accidental releases" "arising
					 from operating the underground storage tank"].
Penal sums of bond:
Per occurrence
$
Annual aggregate
$
Surety's bond number:
Know All Persons by These Presents, that we, the Principal
					 and Surety(ies), hereto are firmly bound to the Hawaii department of health, in
					 the above penal sums for the payment of which we bind ourselves, our heirs,
					 executors, administrators, successors, and assigns jointly and severally;
					 provided that, where the Surety(ies) are corporations acting as co-sureties,
					 we, the Sureties, bind ourselves in such sums 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 sums 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 sums.
Whereas said Principal is required under subchapter
					 8 of chapter
					 11-280.1, Hawaii Administrative Rules,
					 to provide financial assurance for [insert: "taking corrective action" and/or
					 "compensating third parties for bodily injury and property damage caused by"
					 either "sudden accidental releases" or "nonsudden accidental releases" or
					 "accidental releases"; if coverage is different for different tanks or
					 locations, indicate the type of coverage applicable to each tank or location]
					 arising from operating the underground storage tanks identified above,
					 and
Whereas said Principal shall establish a standby trust fund
					 as is required when a surety bond is used to provide such financial
					 assurance;
Now, therefore, the conditions of the obligation are such
					 that if the Principal shall faithfully ["take corrective action, in accordance
					 with subchapter
					 6 of chapter
					 11-280.1, Hawaii Administrative Rules,
					 and the Hawaii director of health's instructions for," and/or "compensate
					 injured third parties for bodily injury and property damage caused by" either
					 "sudden accidental releases" or "nonsudden accidental releases" or "sudden and
					 nonsudden accidental releases"] arising from operating the tank(s) identified
					 above, or if the Principal shall provide alternate financial assurance, as
					 specified in subchapter
					 8 of chapter
					 11-280.1, Hawaii Administrative Rules,
					 within one hundred twenty days after the date the notice of cancellation is
					 received by the Principal from the Surety(ies), then this obligation shall be
					 null and void; otherwise it is to remain in full force and effect.
Such obligation does not apply to any of the
					 following:
(a) Any obligation of
				  [insert owner or operator] under a workers' compensation, disability benefits,
				  or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
				  owner or operator] arising from, and in the course of, employment by [insert
				  owner or operator];
(c) Bodily
				  injury or property damage arising from the ownership, maintenance, use, or
				  entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned,
				  rented, loaned to, in the care, custody, or control of, or occupied by [insert
				  owner or operator] that is not the direct result of a release from a petroleum
				  underground storage tank;
(e)
				  Bodily injury or property damage for which [insert owner or operator] is
				  obligated to pay damages by reason of the assumption of liability in a contract
				  or agreement other than a contract or agreement entered into to meet the
				  requirements of section 11-280.1-93, Hawaii Administrative Rules.
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 Hawaii director of health that the
					 Principal has failed to ["take corrective action, in accordance with subchapter
					 6 of chapter
					 11-280.1, Hawaii Administrative Rules,
					 and the Hawaii director of health's instructions," and/or "compensate injured
					 third parties"] as guaranteed by this bond, the Surety(ies) shall either
					 perform ["corrective action in accordance with chapter
					 11-280.1, Hawaii Administrative Rules,
					 and the Hawaii director of health's instructions," and/or "third party
					 liability compensation"] or place funds in an amount up to the annual aggregate
					 penal sum into the standby trust fund as directed by the Hawaii director of
					 health under section 11-280.1-112, Hawaii Administrative Rules.
Upon notification by the Hawaii director of health that the
					 Principal has failed to provide alternate financial assurance within sixty days
					 after the date the notice of cancellation is received by the Principal from the
					 Surety(ies) and that the Hawaii director of health has determined or suspects
					 that a release has occurred, the Surety(ies) shall place funds in an amount not
					 exceeding the annual aggregate penal sum into the standby trust fund as
					 directed by the Hawaii director of health under section 11-280.1-112, Hawaii
					 Administrative Rules.
The Surety(ies) hereby waive(s) notification of amendments
					 to 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 annual aggregate to the penal sum shown on the
					 face of the bond, but in no event shall the obligation of the Surety(ies)
					 hereunder exceed the amount of said annual aggregate penal sum.
The Surety(ies) may cancel the bond by sending notice of
					 cancellation by certified mail to the Principal, provided, however, that
					 cancellation shall not occur during the one hundred twenty days beginning on
					 the date of receipt of the notice of cancellation by the Principal, as
					 evidenced by the return receipt.
The Principal may terminate this bond by sending written
					 notice to the Surety(ies).
In Witness Thereof, the Principal and Surety(ies) 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(ies) and that the wording of this surety bond is identical to the
					 wording specified in section 11-280.1-98(b), Hawaii Administrative Rules, as
					 such regulations were 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: $