Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 650 - CLOSURE PLANS AND DEMONSTRATION OF FINANCIAL CAPABILITY › Part III - Closure Plans and Financial Assurance Criteria › Section 9VAC25-650-120 - Certificate of deposit

Current through Register Vol. 40, No. 24, July 15, 2024
A. An owner or
				  operator may satisfy the requirements of this chapter, wholly or in part, by
				  assigning all rights, title and interest of a certificate of deposit to the
				  department, conditioned so that the owner or operator shall comply with the
				  approved facility closure plan filed for the facility. The issuing institution
				  shall be an entity that has the authority to issue certificates of deposit in
				  the Commonwealth of Virginia and whose operations are regulated and examined by
				  a federal agency or the State Corporation Commission (Commonwealth of
				  Virginia). The owner or operator must submit the originally signed assignment
				  and the originally signed certificate of deposit, if applicable, to the
				  department.
B. The assignment shall
				  be on financial institution letterhead and worded as follows, except that
				  instructions in parentheses shall be replaced with the relevant information and
				  the parentheses deleted.
ASSIGNMENT OF CERTIFICATE OF DEPOSIT ACCOUNT
City,______________________________
					 20______________________________
FOR VALUE RECEIVED, the undersigned assigns all right,
					 title and interest to the Virginia Department of Environmental Quality,
					 Commonwealth of Virginia and its successors and assigns the Virginia Department
					 of Environmental Quality the principal amount of the instrument, including all
					 monies deposited now or in the future to that instrument, indicated
					 below:
__If checked here, this assignment includes all interest
					 now and hereafter accrued.
Certificate of Deposit Account No.
This assignment is given as security to the Virginia
					 Department of Environmental Quality in the amount of ____________________
					 Dollars ($____________________).
Continuing Assignment. This assignment shall continue to
					 remain in effect for all subsequent terms of the automatically renewable
					 certificate of deposit.
Assignment of Document. The undersigned also assigns any
					 certificate or other document evidencing ownership to the Virginia Department
					 of Environmental Quality.
Additional Security. This assignment shall secure the
					 payment of any financial assurance obligations of the (name of owner/operator)
					 to the Virginia Department of Environmental Quality for closure activities at
					 the (facility name and permit number) located (physical address).
Application of Funds. The undersigned agrees that all or
					 any part of the funds of the indicated account or instrument may be applied to
					 the payment of any and all financial assurance obligations of (name of
					 owner/operator) to the Virginia Department of Environmental Quality for closure
					 activities at the (facility name and address). The undersigned authorizes the
					 Virginia Department of Environmental Quality to withdraw any principal amount
					 on deposit in the indicated account or instrument including any interest, if
					 indicated, and to apply it in the Virginia Department of Environmental
					 Quality's discretion to fund closure at the (facility name) or in the event of
					 (name of owner or operator)'s failure to comply with the regulation entitled
					 Closure Plans and Demonstration of Financial Capability,
					 9VAC25-650-10 et seq.
					 The undersigned agrees that the Virginia Department of Environmental Quality
					 may withdraw any principal and/or interest from the indicated account or
					 instrument without demand or notice. The undersigned agrees to assume any and
					 all loss of penalty due to federal regulations concerning the early withdrawal
					 of funds. Any partial withdrawal of principal or interest shall not release
					 this assignment.
The party or parties to this Assignment set their hand or
					 seals, or if corporate, has caused this assignment to be signed in its
					 corporate name by its duly authorized officers and its seal to be affixed by
					 authority of its Board of Directors the day and year above written.
SEAL
(Owner)
(Print name)
SEAL
(Owner)
(Print name)
THE FOLLOWING SECTION IS TO BE COMPLETED BY THE BRANCH OR
					 LENDING OFFICE:
The signature(s) as shown above compare correctly with the
					 name(s) as shown on record as owner(s) of the Certificate of Deposit indicated
					 above. The above Assignment has been properly recorded by placing a hold in the
					 amount of $____________________for the benefit of the Virginia Department of
					 Environmental Quality.
__If checked here, the accrued interest on the Certificate
					 of Deposit indicated above has been maintained to capitalize versus being
					 mailed by check or transferred to a deposit account.
I certify that the wording of this Assignment is identical
					 to the wording required in 9VAC25-650-120 B as such regulations were
					 constituted on the date shown immediately below.
(Signature)
(Date)
(Print name)
(Title)
C. The amount of the certificate of deposit
				  shall be at least equal to the current closure cost estimate for the facility
				  for which the permit application has been filed or any part thereof not covered
				  by other financial assurance mechanisms. The owner or operator shall maintain
				  the certificate of deposit and assignment until all activities required by the
				  approved facility closure plan have been completed.
D. The owner or operator shall be entitled to
				  demand, receive and recover the interest and income from the certificate of
				  deposit as it becomes due and payable as long as the market value of the
				  certificate of deposit plus any other mechanisms used continue to at least
				  equal the amount of the current closure cost estimate.
E. Following a determination by the
				  department that the owner or operator has ceased operations at the facility or
				  has failed to complete closure activities in accordance with the approved
				  facility closure plan or other permit or special order, the department shall
				  cash the certificate of deposit.
F.
				  Whenever the approved closure cost estimate increases to an amount greater than
				  the amount of the certificate of deposit, the owner or operator shall, within
				  60 days of the increase, cause the amount of the certificate of deposit to be
				  increased to an amount at least equal to the new estimate or obtain other
				  financial assurance as specified in this chapter to cover the increase.
				  Whenever the cost estimate decreases, the owner or operator may reduce the
				  amount of the certificate of deposit to the new estimate following written
				  approval by the department. The owner or operator must submit a certificate of
				  deposit and assignment reflecting the new cost estimate within 60 days of the
				  change in the cost estimate.
G. The
				  department shall return the original assignment and certificate of deposit, if
				  applicable, to the issuing institution for termination when:
1. The owner or operator substitutes
				  acceptable alternate financial assurance for implementation of the closure plan
				  as specified in this chapter; or
2.
				  The department notifies the owner or operator that the owner or operator is no
				  longer required by this chapter to maintain financial assurance for
				  implementation of the closure plan for the facility.