Ariz. Admin. Code § 11-3-802

Current through Register Vol. 30, No. 25, June 21, 2024

Section R11-3-802 - Amount of Financial Assurance

A. Under the terms of A.R.S. § 27-1271(B)(11) and R11-3-502, the Inspector shall determine the amount of financial assurance required of a responsible party.

B. Any financial assurance information offered by a responsible party shall meet the requirements of the Act and this Chapter.

C. The Inspector shall review financial assurance information offered by a responsible party to determine whether the amount of financial assurance is sufficient to meet the standard at A.R.S. § 27-1292(C). The Inspector may rely on standards commonly used by a commercial lender to evaluate the offered financial assurance.

D. Within 30 days after receiving a responsible party's offered financial assurance information, the Inspector shall provide the responsible party with written notice the financial assurance is approved, disapproved, or additional information is needed. If additional information is needed, the Inspector may require the responsible party to provide the Inspector with a written legal opinion from an attorney admitted to practice law in Arizona that the offered financial assurance is lawful, enforceable under existing law, and can be drawn on in case of default. A responsible party required to provide a written legal opinion shall do so at the responsible party's expense.

E. If an approved financial assurance mechanism is canceled by the issuing institution, the responsible party shall provide the Inspector, within 90 days after the notice of cancellation, with evidence an alternate financial assurance mechanism has been obtained.

F. A responsible party may cancel a financial assurance mechanism and replace it with an alternate financial assurance mechanism approved by the Inspector.

Ariz. Admin. Code § R11-3-802

Adopted by final rulemaking at 25 A.A.R. 828, effective 5/11/2019.