Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 590 - PETROLEUM UNDERGROUND STORAGE TANK FINANCIAL RESPONSIBILITY REQUIREMENTS › Section 9VAC25-590-260:5 - APPENDIX V. PAYMENT AND PERFORMANCE BOND

Current through Register Vol. 40, No. 24, July 15, 2024
NOTE: The instructions in brackets are to be replaced by the
				  relevant information and the brackets deleted.
Date bond executed:
Period of coverage:
Principal: legal name and business address of owner or
				  operator.
Type of organization: insert "individual," "joint venture,"
				  ""part"nership," 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
				  9VAC25-580-70 (Underground Storage
				  Tanks: Technical Standards and Corrective Action Requirements), and the name
				  and address of the facility. List the coverage guaranteed by the bond: "taking
				  corrective action" and/or "compensating third "part"ies 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:
Corrective Action (per occurrence) $.....
Third "part"y Liability (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 State Water Control Board of
				  the Commonwealth of Virginia, 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 §
									62.1-44.34:8 through
				  62.1-44.34:12 of the Code of
				  Virginia, Subtitle I of the Solid Waste Disposal Act of 1976, as amended, and
				  under the Virginia Petroleum Underground Storage Tank Financial Requirements
				  Regulation (9VAC25-590), to provide financial assurance for insert: "taking
				  corrective action" and/or "compensating third "part"ies 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;
Now, therefore, the conditions of the obligation are such
				  that if the Principal shall faithfully "take corrective action, in accordance
				  with "part" VI of
				  9VAC25-580-230 through
				  9VAC25-580-300. (Underground
				  Storage Tanks: Technical Standards and Corrective Action Requirements) and the
				  State Water Control Board's instructions for," and/or "compensate injured third
				  "part"ies for bodily injury and property damage caused by" either "sudden"
				  and/or "nonsudden" 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 9VAC25-590, within 120 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
				9VAC25-590-40.
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 State Water Control Board that the
				  Principal has failed to "take corrective action, in accordance with "part" VI
				  of 9VAC25-580-230 through 25-580-300
				  and the State Water Control Board's instructions," and/or "compensate injured
				  third "part"ies" as guaranteed by this bond, the Surety(ies) shall either
				  perform "corrective action in, accordance with 9VAC25-580 and the board's
				  instructions," and/or "third "part"y liability compensation" or pay the funds
				  in an amount up to the annual aggregate penal sum to the State Water Control
				  Board as directed by the State Water Control Board under
				  9VAC25-590-170. The State Water
				  Control Board in its sole discretion may elect to require the surety to pay the
				  funds or to take corrective action and compensate third "part"ies or any
				  combination up to the annual aggregate penal sum.
Upon notification by the State Water Control Board that the
				  Principal has failed to provide alternate financial assurance within 60 days
				  after the date the notice of cancellation is received by the Principal from the
				  Surety(ies) and that the State Water Control Board has determined or suspects
				  that a release has occurred, the Surety(ies) shall pay the funds in an amount
				  not exceeding the annual aggregate penal sum to the State Water Control Board
				  as directed by the State Water Control Board under
				  9VAC25-590-170.
The Surety(ies) submit to the jurisdiction of the Circuit
				  Court of the City of Richmond to adjudicate any claim against it(them) by the
				  State Water Control Board and waive any objection to venue in that court.
				  Interest shall accrue at the judgment rate of interest on the amount due
				  beginning seven days after the date of notification by the State Water Control
				  Board. In the event the State Water Control Board shall institute legal action
				  to compel performance by the Surety under this agreement, the Surety shall be
				  liable for all costs and legal fees incurred by the board to enforce this
				  agreement.
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
				  Surety(ies) hereby agree(s) that it(they) has been notified of all material
				  facts regarding this contract of suretyship and waive(s) any defense founded in
				  concealment of material facts. The Surety(ies) represents that the person
				  executing this agreement has full authority to execute the agreement.
				  Surety(ies) hereby waive(s) any right to notice of breach or default of the
				  Principal. The State Water Control Board may enforce this agreement against the
				  Surety(ies) without bringing suit against the principal. The State Water
				  Control Board shall not be required to exhaust the assets of the Principal
				  before demanding performance or funding of the trust fund by the Surety. No
				  lawful act of the State Water Control Board, including without limitation any
				  extension of time to the Principal, shall serve to release any surety, whether
				  or not that act may be construed to alter or vary this agreement. Release of
				  one co-surety shall not act as the release of another. This agreement shall be
				  construed to effect its purpose to provide remedial action for petroleum
				  releases and to provide compensation for third "part"ies injured by such
				  releases.
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 and the State Water Control
				  Board, provided, however, that cancellation shall not occur during the 120 days
				  beginning on the date of receipt of the notice of cancellation by the principal
				  and the State Water Control Board, as evidenced by the return receipts.
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 Appendix V of 9VAC25-590 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:....................$...
Statutory Authority: §§ 62-1.44.15 and
					 62.1-44.34:9 of the Code of
					 Virginia; 42 USC §
												6901 et seq.; 40 CFR "part"s 280 and
					 281.