| (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.
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