New Jersey Administrative Code › Title 7 - ENVIRONMENTAL PROTECTION › Chapter 14 - WATER POLLUTION CONTROL ACT › Appendix A

Current through Register Vol. 56, No. 14, July 15, 2024
APPENDIX A
WORDING OF FINANCIAL ASSURANCE DOCUMENTS
LETTER OF CREDIT
A letter of credit required by
				7:14-8.3(h) shall
				be worded as follows, except that instructions in brackets are to be replaced
				with the relevant information and the brackets deleted.
Irrevocable Letter of Credit
New Jersey Department of Environmental
						Protection
PO Box 422
Trenton, New Jersey 08625-0422
ATTN: Administrator, Water Compliance and
						Enforcement
RE:
[Name of Violator]
Adjudicatory Hearing Request
Dear Sir or Madam:
We hereby establish our irrevocable standby Letter of Credit
				No. __________ in the favor of the New Jersey Department of Environmental
				Protection, at the request and for the account of [violator's name and address
				of facility at which violation occurred] up to the aggregate amount of [in
				words] U.S. dollars __________, available upon presentation by the New Jersey
				Department of Environmental Protection of (1) a sight draft, bearing reference
				to this irrevocable standby Letter of Credit No. ___________, and (2) a signed
				statement reading as follows:
"I certify that the amount of the draft is payable pursuant to
				the authority of the Water Pollution Control Act,
				58:10A-1 et seq.
This Letter of Credit is effective as of [insert month, day,
				and year] and shall expire on [date at least 1 year later], but such expiration
				date shall be automatically extended for period of at least one (1) year on
				[date] and on each successive expiration date, unless, at least 120 days before
				the current expiration date, we notify both NJDEP's Administrator, Water
				Compliance and Enforcement, PO Box 422, Trenton, New Jersey 08625-0422, and
				[name and address of violator] by certified mail that we have decided not to
				extend this Letter of Credit beyond the current expiration date. In the event
				you are so notified, any unused portion of the credit shall be available upon
				presentation of your sight draft for 120 days after the date of receipt by both
				NJDEP and [name and address of violator], as shown on the signed return
				receipts.
Whenever this Letter of Credit is drawn on under and in
				compliance with the terms of this credit, we shall duly honor such draft upon
				presentation to us, and we shall deposit the amount of the draft directly into
				the standby trust fund of [name of violator] or in accordance with your
				instructions.
We certify that the wording of this Letter of Credit is
				identical to the wording specified in N.J.A.C. 7:14-8 Appendix A, as such
				regulations were constituted on [the date shown immediately below].
[Name of issuing institution] shall not cancel this Letter of
				Credit on the basis of a request from [name violator] until [name of issuing
				institution] has received written authorization from NJDEP.
This irrevocable standby Letter of Credit is subject to [insert
				either "the most recent edition of the 'Uniform Customs and Practice for
				Documentary Credits,' published by the International Chamber of Commerce," or
				"the Uniform Commercial Code"].
This letter of credit sets forth in full our undertaking, and
				such undertaking shall not in any way be modified, amended, amplified or
				limited by reference to any other document, instrument or agreement referred to
				herein, except for the sight draft and your signed statement referred to
				herein. Any such reference shall not be deemed to incorporate herein by
				reference any document, instrument or agreement except for such sight draft and
				signed statement.
Very truly yours,
[Name of Issuing Institution]
[Signature and Title of Official]
[Printed Name of Official]
[Date]"
SURETY BOND
A surety bond guaranteeing payment into a trust fund required
				by 7:14-8.3(h)  shall
				be worded as follows, except that instructions in brackets are to be replaced
				with the relevant information and the brackets deleted.
Financial Guarantee Bond
RE: ADJUDICATORY HEARING REQUEST
NAME OF VIOLATOR _____________________
ADDRESS OF FACILITY AT WHICH VIOLATION
OCCURRED ____________________
Date bond executed: ______________________
Effective date: __________________________
Principal: [Legal name and business address of violator]
Type of organization [insert "individual", "joint venture",
				"partnership", or "corporation"]
State of incorporation: _______________________________
[Insert name of violator, location of facility at which the
				violation occurred, including street address, lot and block number,
				municipality and county, and the financial assurance guaranteed by this
				bond]
Total penal sum of bond: ______________________________
Surety bond number: ___________________________________
Know All Persons By These Presents, That we, the Principal and
				Surety(ies) hereto are firmly bound to the New Jersey Department of
				Environmental Protection, hereinafter NJDEP, in the above penal sum 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 sum "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 sum 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 sum.
WHEREAS, the Principal is required to provide financial
				assurance in the full amount of the cost of fully complying with all of the
				terms and conditions required by the administrative consent order dated [date]
				pursuant to
				7:14-8.3(h),
				and
WHEREAS, the Principal shall establish a standby trust fund as
				required by N.J.A.C. 7:14-3(h). when a surety bond is used to provide a
				mechanism for access by NJDEP to assure in the amount of the cost of fully
				complying with all of the terms and conditions required by the administrative
				consent order dated [date] pursuant to
				7:14-8.3(h);
NOW, THEREFORE, the conditions of this obligation are such that
				if the Principal pays the full amount of the cost of fully complying with all
				of the terms and conditions required by the administrative consent order dated
				[date], then this obligation shall be null and void, otherwise, it is to remain
				in full force and effect.
The Surety(ies) shall become liable on this bond obligation
				only when the Principal has failed to pay the civil administrative penalty when
				due and owing. Upon notification by the NJDEP that the Principal has failed to
				perform as guaranteed by this bond, the Surety(ies) shall place funds in the
				amount guaranteed for the violator into the standby trust fund as directed by
				the NJDEP.
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 aggregate to the penal sum of the bond, but in no
				event shall the obligation of the Surety(ies) hereunder exceed the amount of
				the penal sum.
The Surety(ies) may cancel the bond by sending notice of
				cancellation by certified mail to the Principal and to the NJDEP Administrator,
				Water Compliance and Enforcement, PO Box 422, Trenton, N.J. 08625; provided,
				however, the cancellation shall not occur during the 120 days beginning on the
				date of receipt of the notice of cancellation by both the Principal and the
				NJDEP, as evidenced by the return receipts.
The Principal may terminate this bond by sending written notice
				to the Surety(ies); provided, however, that no such notice shall become
				effective until the Surety(ies) receive(s) written authorization for
				termination of the bond by the NJDEP.
In Witness Whereof, the Principal and Surety(ies) have executed
				this Financial Guarantee Bond and have affixed their seals on the date set
				forth below.
The persons whose signatures appear below hereby certify that
				they are authorized to execute this surety on behalf of the Principal and
				Surety(ies) and that the wording of this surety bond is identical to the
				wording required in N.J.A.C. 7:14-8 Appendix A as constituted on the date the
				bond was established.
Principal __________________________________________
[Signature(s)] _____________________________________
Date _______________________________________________
[Name(s)] __________________________________________
[Title(s)] _________________________________________
[Corporate seal] ___________________________________
[Name and address] _________________________________
State of incorporation: ____________________________
Liability limit: ___________________________________
[Signature(s)] _____________________________________
Date _______________________________________________
[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: ______________________________________
STANDBY TRUST AGREEMENT
A Standby Trust Agreement required by
				7:14-8.3(h)  shall
				be worded as follows, except that instructions in brackets are to be replaced
				with the relevant information and the brackets deleted.
Standby Trust Agreement
RE: ADMINISTRATIVE CONSENT ORDER
NAME OF VIOLATOR __________________________
ADDRESS OF FACILITY AT WHICH VIOLATION
OCCURRED __________________________________
This Standby Trust Agreement, hereinafter "Agreement", entered
				into as of [date] by and between [name and address of the violator], a New
				Jersey [insert "corporation", "partnership", "association", or
				"proprietorship"], hereinafter "Grantor" and [name and address of corporate
				trustee], [insert "incorporated in the State of" or "a national bank"],
				hereinafter "Trustee".
WHEREAS, the Grantor is required to provide financial assurance
				in the full amount of the cost of fully complying with all of the terms and
				conditions required by the administrative consent order dated [date] pursuant
				to 7:14-8.3(h),
				and
WHEREAS, The Grantor, acting through its duly authorized
				officer or management official, has selected the Trustee under this Agreement,
				and the Trustee is willing to act as Trustee.
NOW, THEREFORE, the Grantor and the Trustee agree as
				follow:
Section 1. Definitions
As used in this Agreement:
(a) The term Grantor means the violator who
			 is entering into the administrative consent order with the NJDEP as referenced
			 above, and any successors or assigns of the Grantor.
(b) The term "Trustee" means the Trustee who
			 enters into the Agreement and any successor Trustee.