Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart D - Environmental Health and Safety › Article IX - Residual Waste Management › Chapter 287 - RESIDUAL WASTE MANAGEMENT-GENERAL PROVISIONS › Subchapter E - BONDING AND INSURANCE REQUIREMENTS › TYPES OF BONDS › Section 287.324 - Collateral bonds; certificates of deposit

Current through Register Vol. 54, No. 28, July 13, 2024
Certificates of deposit submitted as collateral for
							 collateral bonds shall be 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 such 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 chartered or 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
						  that 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 of the Commonwealth or an authority of
						  the 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 provisions of 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 (72 P. S. §
														3836-3). A certificate of deposit is not
						  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 all 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 their face that they are automatically renewable. If the
						  operator is a political subdivision of the Commonwealth or an authority of a
						  political subdivision, the certificate of deposit may be established for a term
						  and need not be automatically renewable at the expiration of the term. The
						  political subdivision or authority shall provide to the Department, at least 60
						  days prior to the expiration of the term, written notice of the expiration of
						  the term of the certificate of deposit. If the political subdivision or
						  authority fails to replace the certificate of deposit with another certificate
						  of deposit or other bond guarantee acceptable to the Department within 20 days
						  of the expiration of the term, the Department may collect an amount under the
						  certificate of deposit and hold the proceeds as cash collateral as provided by
						  this subchapter.
(6) The operator
						  shall submit certificates of deposit in amounts and containing terms and
						  conditions 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 may
						  not accept certificates of deposit from banks which have failed or 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 §
															287.313 (relating to form, terms
								and conditions of the bond).