Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart D - Environmental Health and Safety › Article VIII - Municipal Waste › Chapter 271 - MUNICIPAL WASTE MANAGEMENT-GENERAL PROVISIONS › Subchapter D - FINANCIAL ASSURANCES REQUIREMENTS › BOND AND TRUST REQUIREMENTS-TYPES › Section 271.324 - Collateral bonds-certificates of deposit

Current through Register Vol. 54, No. 28, July 13, 2024
Certificates of deposit submitted as collateral for
							 collateral bonds are subject to the following conditions:
(1) The certificate of deposit shall be made
						  payable to the operator and shall be assigned to the Department by the
						  operator, in writing, containing terms and conditions required by the
						  Department and on forms prepared and approved by the Department. The assignment
						  shall be recorded upon the books of the bank issuing the certificate.
(2) The certificate of deposit shall be
						  issued by a federally-insured or equivalently protected state-chartered or
						  National financial institution which is authorized to conduct the business of
						  banking in the United States and examined by a state or Federal
						  agency.
(3) The Department will not
						  accept certificates of deposit from a state-chartered or National financial
						  institution when the accumulated total of certificates of deposit issued by the
						  bank or banking institution for the operator is in excess of $100,000, or the
						  maximum insurable amount as determined by the Federal Deposit Insurance
						  Corporation if the state-chartered or National financial institution is insured
						  by the Federal Deposit Insurance Corporation. If it is insured by an equivalent
						  method administered by the Commonwealth, similar limits apply. If the operator
						  is a political subdivision, the accumulated total of certificates of deposit
						  for the operator may be in an amount secured by a pledge of assets by a
						  depository institution under the act of August 6, 1971 (P. L. 281, No. 72)
						  (72
						  P. S. §§
														3836-1-3836-8). The
						  depository shall pledge the assets securing the amount of certificates of
						  deposit offered under this subsection on a pooled basis in conformance with
						  section 3 of the act of August 6, 1971 (P. L. 281, No. 72) (72 P. S. §
														3836-3). A certificate of deposit will not be
						  acceptable if there is an agreement between the operator, the depository and
						  the custodian providing the custodian discretion to surrender the pledged
						  assets in its possession to a receiver or other successor in interest of the
						  depository.
(4) The certificate of
						  deposit shall state that the bank issuing it waives the rights of setoff or
						  liens which it has or might have against the certificate.
(5) The certificate of deposit shall be
						  automatically renewable and fully assignable to the Department. Certificates of
						  deposit shall state on the face that they are automatically
						  renewable.
(6) The operator shall
						  submit certificates of deposit in amounts which will allow the Department to
						  liquidate the certificates prior to maturity, for the full amount of the bond
						  without penalty to the Department.
(7) The Department will not accept
						  certificates of deposit from banks which have failed or unduly delayed in
						  making payment on certificates of deposit which have previously been submitted
						  as collateral to the Department.
(8) The operator is not entitled to interest
						  accruing on the certificates of deposit after forfeiture is declared by the
						  Department, until the forfeiture declaration is ruled invalid by a court having
						  jurisdiction over the Department, and the ruling is final.
This section cited in 25 Pa. Code §
															271.313 (relating to form, terms
								and conditions of the bond or trust); 25 Pa. Code §
															284.641 (relating to bond
								requirement); and 25 Pa. Code §
															285.341 (relating to bond
								requirement).