Ill. Admin. Code tit. 32, § 326.120 - Certificate of Deposit as a Financial Assurance Arrangement
Current through Register Vol. 46, No. 15, April 8, 2022
If a licensee elects to satisfy the financial assurance requirements of Section 326.90 of this Part by filing a certificate of deposit, the certificate of deposit supporting this guarantee shall conform to the following requirements:
a) The institution issuing the certificate of
deposit shall be an entity that has the authority to issue certificates of
deposit and whose certificate of deposit operations are regulated and examined
by a federal or State agency.
b)
The wording of the certificate of deposit shall contain the substantive
provisions specified in Appendix D of this Part. Additional provisions may be
included so long as no requirement of this Part is avoided or altered and no
additional requirements are placed upon the Agency.
c) The certificate of deposit shall be
accompanied by a letter from the licensee referring to the certificate of
deposit by number, issuing institution and date and providing the following
information:
1) The letter shall reference
the radioactive material license numbers, names and addresses of the facilities
and the amount of funds assured for reclaiming of the facilities by the
certificate of deposit; and
2) The
letter shall state that the licensee conveys, transfers, pledges, hypothecates
and grants a security interest in and to the certificate to the
Agency.
d) The
certificate of deposit shall be issued for a period of at least 1 year. The
certificate of deposit shall provide that the certificate will be automatically
renewed for a period of 1 year unless, at least 180 days before the current
expiration date, the issuing institution notifies both the licensee and the
Agency by certified mail, return receipt requested, of a decision not to renew
the certificate. The 180 days will begin on the date when both the licensee and
the Agency have received notice, as evidenced by the return receipts. Unless
the Agency provides written notice to the issuing institution that the licensee
has provided substitute financial assurance acceptable to the Agency as
specified in Section
326.170
of this Part, the issuing institution shall, upon maturity of a certificate of
deposit that is not being renewed, pay to the Agency the amount deposited under
the certificate of deposit. The Agency may delay the drawing if the issuing
institution grants an extension of the term of the credit. During the last 30
days of any extension, the Director may draw on the certificate of deposit if
the licensee has failed to provide alternative financial assurance arrangements
as specified in Section
326.170
of this Part and obtain written approval of such arrangements from the
Agency.
e) The certificate of
deposit shall be in an amount, after considering other financial assurance
arrangements that are in place, sufficient to provide the necessary funds in
order to terminate the license in accordance with the requirements of 32 Ill.
Adm. Code 330.
f) Interest accrued
on a certificate of deposit shall be paid directly to the licensee and shall
not automatically increase the amount of any certificate of deposit on file
with the Agency.
Notes
Amended at 29 Ill. Reg. 20781, effective December 16, 2005
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