Figure: 30 TAC §37.321
PERFORMANCE BOND
Date bond executed:_____________________.
Effective date:_________________________.
Principal: (legal name and business address of owner or operator)______________________________
________________________________________________________________________________.
Type of organization: (insert "individual," "joint venture," "partnership," or "corporation")________.
State of incorporation:_________________.
Surety(ies): (name(s) and business address(es))_____________________________________________
__________________________________________________________________________________.
Permit number, name, physical and mailing addresses, and closure, post closure, or corrective action amounts(s) for each facility guaranteed by this bond (indicate closure, post closure, or corrective action amounts separately for each facility):_____________________________________________________.
Total penal sum of bond: $__________________.
Surety's bond number:_____________________.
Know All Persons By These Presents, That We, the Principal and Surety(ies) hereto are firmly bound to the Texas Commission on Environmental Quality, hereinafter called TCEQ, in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Surety(ies) are corporations acting as co-sureties, we, the Sureties, bind ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety, but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.
Whereas said Principal is required, under the appropriate program area, to comply with permit requirements in order to own or operate each facility identified above, and
Whereas said Principal is required to provide financial assurance for closure, post closure, or corrective action as a condition of the permit or other applicable requirements, and
Whereas said Principal shall establish a standby trust fund as is required when a surety bond is used to provide such financial assurance;
Now, therefore, the conditions of this obligation are such that if the Principal shall faithfully perform closure, post closure, or corrective action, whenever required to do so, of each facility for which this bond guarantees closure or post closure in accordance with the closure plan or post closure plan and other applicable requirements of the permit, or perform corrective action in accordance with the permit or other applicable requirements as may be amended, pursuant to all applicable laws, statutes, rules and regulations, as such laws, statutes, rules, and regulations may be amended,
Or, if the Principal shall provide alternate financial assurance, as specified in 30 Texas Administrative Code, Chapter 37 (relating to Financial Assurance) and obtain the TCEQ executive director's written approval of such assurance, within 90 days after the date of notice of cancellation is received by both the Principal and the TCEQ executive director from the Surety(ies), then this obligation shall be null and void, otherwise it is to remain in full force and effect.
The Surety(ies) shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above.
Upon notification by the TCEQ executive director that the Principal has been found in violation of the closure, post closure, or corrective action requirements for a facility for which this bond guarantees performance of closure, post closure, or corrective action, the Surety(ies) shall either perform closure, post closure, or corrective action in accordance with the closure plan or post closure plan and other applicable requirements of the permit, or perform corrective action in accordance with the permit or other applicable requirements, or place the amount guaranteed for the facility in the standby trust fund as directed by the TCEQ executive director.
Upon notification by the TCEQ executive director that the Principal has failed to provide alternate financial assurance, as specified in 30 Texas Administrative Code, Chapter 37, and obtain written approval of such assurance from the TCEQ executive director during the 90 days following receipt by both the Principal and the TCEQ executive director of a notice of cancellation of the bond, the Surety(ies) shall place funds in the amount guaranteed for the facility(ies) into the standby trust fund.
The surety(ies) hereby waive(s) notification of amendments to closure plans or post closure plans and other applicable requirements of the permit, or permits requiring corrective action or other applicable requirements for corrective action, applicable laws, statutes, rules, and regulations and agrees that no such amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the Surety(ies) shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed the amount of said penal sum.
The Surety(ies) may cancel the bond by sending notice of cancellation by certified mail to the owner and operator and to the TCEQ executive director provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by both the Principal and the TCEQ executive director, as evidenced by the return receipts.
The principal may terminate this bond by sending written notice to the Surety(ies), provided, however, that no such notice shall become effective until the Surety(ies) receive(s) written authorization for termination of the bond by the TCEQ executive director.
(The following paragraph is an optional rider that may be included but is not required.)
Principal and Surety(ies) hereby agree to adjust the penal sum of the bond yearly so that it guarantees a new closure, post closure, or corrective action amount, provided that the penal sum does not increase by more than 20 percent in any one year, and no decrease in the penal sum takes place without the written permission of the TCEQ executive director.
In Witness Whereof, The Principal and Surety(ies) have executed this Performance Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety(ies) and that the wording on this surety bond is identical to the wording specified in 30 Texas Administrative Code §37.321 as such regulation was constituted on the date this bond was executed.
Principal
(Signature(s))__________________________________________
(Name(s))_____________________________________________
(Title(s))______________________________________________
(Corporate seal)
(Corporate Surety(ies))
(Name and address)___________________________________________________________________
State of Incorporation:_____________________
Liability limit: $__________________________
(Signature(s))______________________________________________
(Name(s) and title(s))________________________________________
(Corporate seal)
(For every co-surety, provide signature(s), corporate seal, and other information in the same manner as for Surety above.)
Bond premium: $___________________