30 Tex. Admin. Code § 37.830 - Guarantee
(a) An owner or operator may satisfy the
requirements of §
37.815 of this title (relating to
Amount and Scope of Required Financial Responsibility) by obtaining a guarantee
that conforms to the requirements of this section. The guarantor must be:
(1) a firm that:
(A) possesses a controlling interest in the
owner or operator;
(B) possesses a
controlling interest in a firm described under subparagraph (A) of this
paragraph; or
(C) is controlled
through stock ownership by a common parent firm that possesses a controlling
interest in the owner or operator; or
(2) a firm engaged in a substantial business
relationship with the owner or operator and issuing the guarantee as an act
incident to that business relationship.
(b) Within 120 days of the close of each
financial reporting year the guarantor must demonstrate that it meets the
financial test criteria of §
37.825 of this title (relating to
Financial Test of Self-Insurance) based on year-end financial statements for
the latest completed financial reporting year by completing the letter from the
chief financial officer described in §
37.825(d) of
this title and must 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 the owner or operator. If the agency
notifies the guarantor that he or she no longer meets the requirements of the
financial test of §
37.825(b) or (c) and
(d) of this title the guarantor must notify
the owner or operator within ten days of receiving this notification from the
agency. In both cases, the guarantee will terminate no less than 120 days after
the date the owner or operator receives the notification, as evidenced by the
return receipt. The owner or operator must obtain alternate coverage as
specified in §
37.890(c) of
this title (relating to Bankruptcy or Other Incapacity of Owner or Operator or
Provider of Financial Assurance).
(c) The guarantee must be worded as follows,
except that instructions in parentheses are to be replaced with the relevant
information and the parentheses deleted.
(d) An
owner or operator who uses a guarantee to satisfy the requirements of §
37.815 of this title must
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 executive director under §
37.880 of this title (relating to
Drawing on Financial Assurance Mechanisms). This standby trust fund must meet
the requirements specified in §
37.855 of this title (relating to
Standby Trust Fund).
Notes
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