Ariz. Admin. Code § R18-12-310 - Certificate of Deposit
A. Owners
and operators may satisfy the corrective action requirements, but not the
3rd-party compensation requirements, of
R18-12-303 by obtaining an
irrevocable certificate of deposit and preparing a Certification and Agreement
that conforms to the requirements of this Section. The issuing institution
shall meet all of the following:
1. Has the
authority to issue certificates of deposit in Arizona,
2. Certificate of deposit operations are
regulated and examined by a federal or state agency,
3. Is a member of the Federal Deposit
Insurance Corporation.
B. The certificate of deposit may be used for
the full required amount of corrective action coverage. Alternatively, it may
be used for part of the required amount of corrective action coverage when used
in combination with other mechanisms allowed under this Article which provide
the remaining amount of coverage. In all cases, the full required amount of
3rd-party compensation coverage shall be met with another mechanism or
mechanisms allowed under this Article.
C. Owners and operators who use a certificate
of deposit to meet the corrective action requirements of
R18-12-303 shall comply with all
of the following:
1. The certificate of
deposit document and the records of the issuing institution shall designate the
Department as the sole payee. The original certificate of deposit, a blank
signature card, and the certification and agreement executed in accordance with
subsection (D) shall be submitted to the Department. The Department shall
return the signature card to the issuing institution with the current
Director's signature and the signature of an alternative person designated by
the Director affixed;
2. If the
issuing institution is unwilling or unable to prepare a certificate of deposit
made payable only to the Department, the owner or operator and the issuing
institution shall prepare and execute an assignment in the presence of a notary
public with a copy provided to the issuing institution which allows only the
Department access to the certificate of deposit;
3. The owner or operator's Social Security or
Tax Identification number shall appear on the certificate of deposit;
4. All interest accrued on the certificate of
deposit shall be applied back to the certificate of deposit;
5. Upon verification by the Department that
the requirements of this Article are met using another mechanism or combination
of mechanisms, the owner or operator may submit a written request to the
Director for release of the certificate of deposit. Within 30 days of receipt
of the request from the owner or operator under this subsection, the Director
shall release to the owner or operator the certificate of deposit and the
certification and agreement.
D. The owner or operator shall prepare,
execute, and submit to the Department and the issuing institution a
Certification and Agreement which shall be worded as shown in Appendix A except
that instructions in brackets are to be replaced with the relevant information
and the brackets deleted.
E. The
certificate of deposit shall be irrevocable with an automatically renewable
term, the length of which may be specified by owners and operators. The initial
term and the automatic renewal term shall be stated on the certificate of
deposit.
F. The Department may
present for payment any certificate of deposit to the issuing institution and
receive cash if either of the following occur:
1. The owner or operator reports a release in
accordance with A.R.S. §
49-1004 from an underground
storage tank covered by the certificate of deposit and makes a written request
to the Director for payment of corrective action expenses required under A.R.S.
§
49-1005. If a request for payment
is made the owner or operator shall submit an invoice for corrective action
services which have been performed as required under A.R.S. §
49-1005;
2. The conditions of
R18-12-322(B)(1)
exist.
G. The Department
shall pay, from funds received from cashing the certificate of deposit,
corrective action expenses if they are determined to be reasonable and
necessary.
H. The Director shall,
within 30 days of the date on which the certificate of deposit is cashed,
return to the owner or operator any funds received from cashing the certificate
of deposit which are in excess of the amount of financial responsibility being
demonstrated by the certificate of deposit. The Director shall place funds
received from the certificate of deposit which have not been used to meet the
expenses payable under subsection (G) in the UST Revolving Fund until such time
as they are needed. If upon completion of all corrective action, as evidenced
by a corrective action closure letter issued by the Department, the costs
incurred for corrective action are less than the amount received from cashing
of the certificate of deposit, any excess funds remaining after final payment
shall be refunded to the owner or operator within 30 days of receipt by the
Department of a written request for refund.
Notes
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