30 Tex. Admin. Code § 37.501 - Trust Fund for Liability
(a) An owner or
operator may satisfy the requirements of financial assurance for liability as
specified in Subchapter E of this chapter (relating to Financial Assurance
Requirements for Liability Coverage) by establishing a fully funded trust fund
that conforms to the requirements of this section, in addition to the
requirements specified in Subchapter A of this chapter (relating to General
Financial Assurance Requirements), and submitting an originally signed
duplicate of the executed trust agreement to the executive director.
(b) The trustee shall be an entity which has
the authority to act as a trustee and whose trust operations are regulated and
examined by a federal or state agency.
(c) The wording of the trust agreement must
be identical to the wording specified in §
37.601(a) of
this title (relating to Trust Agreement for Liability), including a formal
certification of acknowledgment as specified in §
37.601(b) of
this title.
(d) The trust fund for
liability shall be funded for the full amount of the liability coverage to be
provided by the trust before it may be relied upon to satisfy the requirements
of financial assurance for liability. If at any time after the trust is created
the amount of funds in the trust is reduced below the full amount of the
liability coverage to be provided, the owner or operator, by the anniversary
date of the establishment of the trust, shall either add sufficient funds to
the trust to cause its value to equal the full amount of liability coverage to
be provided, or obtain another financial assurance mechanism as specified in
this subchapter to cover the difference. For purposes of this section, "the
full amount of liability coverage to be provided" means the amount of coverage
for sudden and/or nonsudden accidental occurrences required to be provided less
the amount of financial assurance for liability coverage being provided by
other financial assurance mechanisms being used to demonstrate financial
assurance by the owner or operator.
(e) If the value of the trust fund is greater
than the total amount of the required liability coverage, the owner or operator
may submit a written request to the executive director for release of the
amount in excess of the required liability coverage.
(f) If an owner or operator substitutes other
financial assurance as specified in this subchapter for all or part of the
trust fund, the owner or operator may submit a written request to the executive
director for release of the amount in excess of the required liability coverage
as covered by the trust fund.
(g)
Within 60 days after receiving a request from the owner or operator for release
of funds as specified in subsection (e) or (f) of this section, the executive
director, if the request is approved, shall instruct the trustee in writing to
release to the owner or operator such funds.
Notes
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