Ariz. Admin. Code § R18-12-306 - Guarantee
A. Owners and
operators may satisfy the requirements of
R18-12-303 by obtaining a
guarantee that conforms to the requirements of this Section. The guarantor
shall be either one of the following:
1. A
firm that meets any one of the following descriptions:
a. Possesses a controlling interest in the
owner or operator,
b. Possesses a
controlling interest in a firm described under subsection (A)(1)(a),
c. Is controlled through stock ownership by a
common parent firm that possesses a controlling interest in the owner or
operator.
2. A firm
engaged in a substantial business relationship with the owner or operator and
who issues the guarantee as an act incident to that business
relationship.
B. Within
120 days of the close of each financial reporting year, the guarantor shall
demonstrate that it meets the financial test criteria of
R18-12-305 based on year-end
financial statements for the latest completed financial reporting year by
completing the letter from the chief financial officer described in
R18-12-305(D)
and shall deliver the letter to the owner or operator. If the guarantor fails
to meet the requirements of the financial test at the end of any financial
reporting year, within 120 days of the end of that financial reporting year the
guarantor shall send by certified mail, before cancellation or nonrenewal of
the guarantee, notice to owners or operators. If the Director notifies the
guarantor that the guarantor no longer meets the requirements of the financial
test of R18-12-305(B) or (C) and
(D), the guarantor shall notify owners and
operators within 10 days of receiving such notification from the Director. In
both cases, the guarantee terminates no less than 120 days after the date the
owner and operator receives the notification, as evidenced by the return
receipt. Owners and operators shall obtain alternate coverage as specified in
R18-12-318.
C. The guarantee shall be worded as provided
in 40
CFR 280.96(c), amended as of
October 13, 2015, except that instructions in brackets are to be replaced with
the relevant information and the brackets deleted.
D. Owners and operators who use a guarantee
to satisfy the requirements of
R18-12-303 shall establish a
standby trust fund when the guarantee is obtained. Under the terms of the
guarantee, all amounts paid by the guarantor under the guarantee will be
deposited directly into the standby trust fund in accordance with instructions
from the Director under
R18-12-322 . This standby trust
fund shall meet the requirements specified in
R18-12-313.
Notes
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