Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 770 - VIRGINIA FINANCIAL RESPONSIBILITY REQUIREMENTS FOR MITIGATION ASSOCIATED WITH TIDAL DREDGING PROJECTS › Part III - Compensatory Mitigation Plan And Financial Responsibility Criteria › Section 9VAC25-770-190 - Wording of the instruments

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  Wording of surety bond.
SURETY BOND
Date bond executed:
______________________________
Period of coverage:
______________________________
Effective date:
_______________
Principal: (legal name and address of owner or
					 operator)
_______________________
Type of organization: (insert "individual" "joint venture,"
					 "partnership," "corporation," or appropriate identification of type of
					 organization)
______________________________
State of incorporation (if applicable):
______________________________
Surety: (name(s) and business address)
______________________________
Scope of Coverage:
(List the name of the project and the physical address
					 where the project is located and VWP permit number. List the coverage
					 guaranteed by the bond: "for completion of compensatory mitigation
					 activities")
Penal sum of bond: $________________________
Surety's bond number: ______________________________
Know All Persons by These Presents, that we, the Principal
					 and Surety(ies), hereto are firmly bound to the Department of Environmental
					 Quality, Commonwealth of Virginia, ("DEQ") in the above penal sum 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 sum.
Whereas said Principal is required under §
											62.1-44.15(5c)
					 of the State Water Control Law of the Code of Virginia to demonstrate financial
					 responsibility to implement a plan to complete the required compensatory
					 mitigation activities described in a permit, order or regulations;
Now, therefore, the conditions of the obligation are such
					 that if the Principal shall faithfully implement the compensatory mitigation
					 plan in accordance with the applicable regulations and the Director of the
					 DEQ's instructions to implement the plan for the project described above, or if
					 the Principal shall provide alternate documentation of financial
					 responsibility, acceptable to DEQ and obtain the Director's written approval of
					 such assurance, within 60 days after the date the notice of cancellation is
					 received by the Director of the DEQ from the Surety(ies), then this obligation
					 shall be null and void; otherwise it is to remain in full force and
					 effect.
The Surety(ies) shall become liable on this bond when the
					 Principal has failed to fulfill the conditions described above. Upon
					 notification by the Director of the DEQ that the owner or operator has failed
					 to fulfill the conditions above or that the DEQ has determined that the
					 Principal has failed to complete the project described above, the Surety(ies)
					 shall either implement the compensatory mitigation plan or forfeit the full
					 amount of the penal sum as directed by the Director of the DEQ under
					 9VAC25-770-120.
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 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 penal sum.
The Surety(ies) may cancel the bond by sending notice of
					 cancellation by certified mail to the Principal and to the Director of the DEQ,
					 Commonwealth of Virginia, P.O. Box 1105, Richmond, Virginia 23218 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 Director of
					 the DEQ as shown on the signed return receipt.
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 9VAC25-770-190 A 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: $ ______________
B. Wording of letter of credit.
IRREVOCABLE STANDBY LETTER OF CREDIT
(Name and address of issuing institution)
Beneficiary:
Director
Department of Environmental Quality (DEQ)
P. O. Box 1105
1111 East Main Street, Suite 1400
Richmond, Virginia 23218
Dear Sir or Madam: We hereby establish our Irrevocable
					 Standby Letter of Credit No.________ in your favor, at the request and for the
					 account of (permittee) of (address) up to the aggregate amount of (in words)
					 U.S. dollars, ($(insert dollar amount)), available upon presentation of
(1) your sight draft, bearing reference to
				  this letter of credit, No._______ and
(2) your signed statement reading as follows:
"I certify that the amount of the draft is payable pursuant
					 to regulations issued under authority of § 62.1- 44.15 (5c) of the Code of
					 Virginia."
This letter of credit may be drawn on to implement the
					 compensatory mitigation plan for the project identified below in the amount of
					 (in words) $ (insert dollar amount). (Name and physical address of the project
					 assured by this mechanism and VWP permit number.)
This letter of credit is effective as of (date) and shall
					 expire on (date), but such expiration date shall be automatically extended for
					 a period of (at least the length of the original term) on (expiration date) and
					 on each successive expiration date, unless, at least 120 days before the
					 current expiration date, we notify the Director of the DEQ and the permittee by
					 certified mail that we have decided not to extend this letter of credit beyond
					 the current expiration date. In the event that the permittee is so notified,
					 any unused portion of the credit shall be available upon presentation of your
					 sight draft for 120 days after the date of receipt by the Director of the DEQ
					 and the permittee, as shown on the signed return receipt.
Whenever this letter of credit is drawn on under and in
					 compliance with the terms of this credit, we shall duly honor such draft upon
					 presentation to us, and we shall submit the amount of the draft directly to DEQ
					 in accordance with your instructions.
I hereby certify that I am authorized to execute this
					 letter of credit on behalf of (issuing institution) and I hereby certify that
					 the wording of this letter of credit is identical to the wording required in
					 9VAC25-770-190 B as such regulations were constituted on the date shown
					 immediately below.
Attest:
Signature
Date
Name
Title
This credit is subject to (insert "the most recent edition
					 of the Uniform Customs and Practice for Documentary Credits, published by the
					 International Chamber of Commerce," or "the Uniform Commercial Code").