Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article I - Land Resources › Chapter 86 - SURFACE AND UNDERGROUND COAL MINING: GENERAL › Subchapter F - BONDING AND INSURANCE REQUIREMENTS › FORM, TERMS AND CONDITIONS OF BONDS AND INSURANCE › Section 86.157 - Special terms and conditions for surety bonds

Current through Register Vol. 54, No. 28, July 13, 2024
Surety bonds are subject to the following conditions:
(1) The Department will not accept
						  the bond of a surety company which has failed or unduly delayed in making
						  payment on a forfeited surety bond.
(2) The Department will not accept the bond
						  of a surety company unless the bond is not cancellable by the surety for
						  reasons including, but not limited to, nonpayment of premium or bankruptcy of
						  the permittee during the period of liability.
(3) The Department will not accept a single
						  bond from a surety company for a permittee if the single bond is in excess of
						  the surety company's maximum single risk exposure as provided in The Insurance
						  Company Law of 1921 (40 P. S. §§
														341-991), unless the surety company complies
						  with The Insurance Company Law of 1921 for exceeding the maximum single risk
						  exposure.
(4) The Department will
						  provide in the bond that the amount shall be confessed to judgment upon
						  forfeiture.
(5) The bond shall
						  provide that the surety and the permittee shall be jointly and severally
						  liable.
(6) The bond shall provide
						  that the surety will give prompt notice to the permittee and the Department of
						  a notice received or action filed alleging the insolvency or bankruptcy of the
						  surety, or alleging violations of regulatory requirements which could result in
						  suspension or revocation of the surety's license to do business.
(7) The Department will accept only the bond
						  of a surety authorized to do business in this Commonwealth when the surety bond
						  is signed by an appropriate official of the surety as determined by the
						  Department. If the principal place of business of the surety is outside this
						  Commonwealth, the surety bond shall be signed by an authorized resident agent
						  of the surety.
(8) The bond shall
						  provide that liability on the bond may not be impaired or affected by a renewal
						  or extension of the time for performance, or a forbearance or delay, in
						  declaring or enforcing forfeiture of the bond. In the event of forfeiture, the
						  surety shall have the option, subject to the consent and approval of the
						  Department, to cover or perform the principal's obligation on the bond, in lieu
						  of paying the bond amount to the Department. The surety shall notify the
						  Department within 30 days of receiving the Department's notice of forfeiture of
						  the surety's intent to perform the principal's obligation under the bond. If
						  the surety does not notify the Department within the 30- day period, the
						  Department may proceed with enforcing the forfeiture and collecting the
						  bond.
This section cited in 25 Pa. Code § 86.155
								(relating to scope).