30 Tex. Admin. Code § 37.261 - Corporate Guarantee
(a) An owner or
operator may satisfy the requirements of financial assurance for closure, post
closure, or corrective action by obtaining a written guarantee, hereafter
referred to as "corporate guarantee," which conforms to the requirements of
this section, in addition to the requirements as specified in Subchapters A and
B of this chapter (relating to General Financial Assurance Requirements and
Financial Assurance Requirements for Closure, Post Closure, and Corrective
Action).
(b) The guarantor shall be
the direct or higher-tier parent corporation of the owner or operator or a
corporation with a substantial business relationship with the owner or
operator. The guarantor must meet the requirements for owners or operators as
specified in §
37.251 of this title (relating to
Financial Test). The guarantor must comply with the terms of the corporate
guarantee.
(c) The wording of the
corporate guarantee must be identical to the wording specified in §
37.361 of this title (relating to
Corporate Guarantee). The corporate guarantee shall accompany the items sent to
the executive director as specified in §
37.251(c) of
this title.
(d) If the guarantor
has a substantial business relationship with the owner or operator, in addition
to the requirements specified in this chapter for the financial test and
corporate guarantee, the guarantor will submit a description of the substantial
business relationship and the value received in consideration of the guarantee;
an original or certified original copy of the Resolution by the Board of
Directors or a certified letter from the chief financial officer, authorizing
the corporate guarantee on behalf of the entity; an original or certified
original copy of the Resolution by the Board of Directors authorizing the
formation or acquisition of the guaranteed entity; an organizational chart
which shows the relationship between the two entities; the partnership
agreement or other agreements, articles, or bylaws which set out the formation,
structure, and operation of the guaranteed entity. After the initial submission
of these items to demonstrate a substantial business relationship, if there has
been no change in the substantial business relationship, the chief financial
officer may submit a letter attesting that there has been no change.
(e) The terms of the corporate guarantee
shall provide that:
(1) if the owner or
operator fails to perform closure, post closure, or corrective action at the
facility(ies) covered by the corporate guarantee in accordance with the permits
and other applicable requirements whenever required to do so, the guarantor
shall do so or establish a trust fund as specified in §
37.201 of this title (relating to
Trust Fund) in the name of the owner or operator in the amount of the current
cost estimate;
(2) the corporate
guarantee shall remain in force unless the guarantor sends notice of
termination by certified mail to the owner or operator and the executive
director and the owner or operator has obtained, and the executive director has
approved, alternative financial assurance; and
(3) if the owner or operator fails to provide
alternate financial assurance as specified in this subchapter and obtain the
written approval of such alternate assurance from the executive director within
90 days after receipt by both the owner or operator and the executive director
of a notice of termination of the corporate guarantee from the guarantor, the
guarantor shall provide such alternate financial assurance in the name of the
owner or operator.
Notes
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