Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 590 - PETROLEUM UNDERGROUND STORAGE TANK FINANCIAL RESPONSIBILITY REQUIREMENTS › Section 9VAC25-590-260:2 - APPENDIX II. GUARANTEE

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.
Guarantee made this date by name of guaranteeing entity, a
				  business entity organized under the laws of the state of insert name of state,
				  herein referred to as guarantor, to the State Water Control Board of the
				  Commonwealth of Virginia and to any and all third "part"ies, and obligees, on
				  behalf of owner or operator of business address.
Recitals.
(1)
				Guarantor meets or exceeds the financial test criteria of
				9VAC25-590-60 B or C and D of
				Virginia Petroleum Underground Storage Tank Financial Responsibility
				Requirements, 9VAC25-590, and agrees to comply with the requirements for
				guarantors as specified in
				9VAC25-590-70 B.
(2) Owner or operator owns or operates the
				following underground storage tank(s) covered by this guarantee: 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. This guarantee satisfies this chapter's
				requirements for assuring funding 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 above-identified underground storage tank(s) in the
				amount of insert dollar amount corrective action per occurrence, insert dollar
				amount third "part"y liability per occurrence, and insert dollar amount annual
				aggregate.
(3) Insert appropriate
				phrase: "On behalf of our subsidiary" (if guarantor is corporate parent of the
				owner or operator); "On behalf of our affiliate" (if guarantor is a related
				firm of the owner or operator); or "Incident to our business relationship with"
				(if guarantor is providing the guarantee as an incident to a substantial
				business relationship with owner or operator) owner or operator, guarantor
				guarantees to the State Water Control Board and to any and all third "part"ies
				that:
In the event that owner or operator fails to provide
				  alternate coverage within 60 days after receipt of a notice of cancellation of
				  this guarantee and the State Water Control Board has determined or suspects
				  that a release has occurred at an underground storage tank covered by this
				  guarantee, the guarantor, upon instructions from the State Water Control Board,
				  shall pay the funds to the State Water Control Board in accordance with the
				  provisions of
				  9VAC25-590-170, in an amount not to
				  exceed the coverage limits specified above.
In the event that the State Water Control Board determines
				  that owner or operator has failed to perform corrective action for releases
				  arising out of the operation of the above-identified tank(s) in accordance with
				  9VAC25-580-230 through
				  9VAC25-580-300 (Underground Storage
				  Tanks: Technical Standards and Corrective Action Requirements), the guarantor
				  upon written instructions from the State Water Control Board shall pay the
				  funds to the State Water Control Board in accordance with the provisions of
				  9VAC25-590-170, in an amount not to
				  exceed the coverage limits specified above.
If owner or operator fails to satisfy a judgment or award
				  based on a determination of liability for bodily injury or property damage to
				  third "part"ies caused by "sudden" and/or "nonsudden" accidental releases
				  arising from the operation of the above-identified tank(s), or fails to pay an
				  amount agreed to in settlement of a claim arising from or alleged to arise from
				  such injury or damage, the guarantor, upon written instructions from the State
				  Water Control Board, shall pay the funds to the State Water Control Board in
				  accordance with the provisions of
				  9VAC25-590-170 to satisfy such
				  judgment(s), award(s), or settlement agreement(s) up to the limits of coverage
				  specified above.
(4)
				Guarantor agrees that if, at the end of any fiscal year before cancellation of
				this guarantee, the guarantor fails to meet the financial test criteria of
				9VAC25-590-60 B or C and D,
				guarantor shall send within 120 days of such failure, by certified mail, notice
				to owner or operator and the State Water Control Board. The guarantee will
				terminate 120 days from the date of receipt of the notice by owner or operator
				and the State Water Control Board, as evidenced by the return
				receipts.
(5) Guarantor agrees to
				notify owner or operator and the State Water Control Board by certified mail of
				a voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S. Code,
				naming guarantor as debtor, within 10 days after commencement of the
				proceeding.
(6) Guarantor agrees to
				remain bound under this guarantee notwithstanding any modification or
				alteration of any obligation of owner or operator pursuant to 9VAC25-580 and
				9VAC25-590.
(7) Guarantor agrees to
				remain bound under this guarantee for so long as owner or operator must comply
				with the applicable financial responsibility requirements of 9VAC25-590 for the
				above-identified tank(s), except that guarantor may cancel this guarantee by
				sending notice by certified mail to owner or operator and the State Water
				Control Board, such cancellation to become effective no earlier than 120 days
				after receipt of such notice by owner or operator and the State Water Control
				Board, as evidenced by the return receipt.
(8) The guarantor's 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 damage 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.