| (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 obtaining an
irrevocable standby letter of credit which 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 irrevocable standby letter of credit to the executive
director.
(b) The financial institution issuing the irrevocable standby
letter of credit shall be an entity that has the authority to issue irrevocable
standby letters of credit and whose letter of credit operations are regulated
and examined by a federal or state agency.
(c) The wording of the irrevocable standby letter of credit
must be identical to the wording specified in §37.621 of this title (relating
to Irrevocable Standby Letter of Credit for Liability).
(d) An owner or operator who uses an irrevocable standby letter
of credit to satisfy the requirements of this section may also establish a
standby trust fund. Under the terms of such a letter of credit, all amounts
paid pursuant to a draft by the trustee of the standby trust will be deposited
by the issuing institution into the standby trust in accordance with instructions
from the trustee. The trustee of the standby trust fund must 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.
(e) The wording of the standby trust fund must be identical
to the wording specified in §37.671 of this title (relating to Standby
Trust Agreement).
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