5 Colo. Code Regs. § 1002-66-D
Wording for a Payment Guarantee Surety Bond
A surety bond guaranteeing payment into a trust fund must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:
Payment Guarantee Bond
Date bond executed: ___________________________________________________________________
Effective date: ________________________________________________________________________
Principal:[legal name and business address of permittee or applicant] ____________________________
____________________________________________________________________________________
____________________________________________________________________________________
Type of organization: [insert "individual", "joint venture", "partnership", or "corporation"] ______________
State of incorporation: __________________________________________________________________
Surety(ies):[name(s) and business address(es)] _____________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Name, address, and closure costs for each facility guaranteed by this bond: [Indicate closure costs 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 Colorado Department of Public Health and Environment, Water Quality Control Division 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 cosureties, we, the sureties, bind ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or action 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 Colorado regulations pertaining to housed commercial swine feeding operations, to have a permit in order to own or operate each housed commercial swine feeding operation facility identified above; and,
Whereas said principal is required to provide financial assurance for closure, post-closure, and corrective actions, as a condition of the permit; and,
Whereas said principal shall establish a standby trust fund as is required when a surety bond is used to provide such financial assurance, unless an alternate mechanism has been established by the State of Colorado to directly receive monies.
Now, therefore, the conditions of the obligation are such that if the principal shall faithfully, before the beginning of final closure of each facility identified above, fund the standby trust fund in the amount(s) identified above for the facility(ies);
Or, if the principal shall fund the standby trust fund in such amount(s) within 15 days after an order to begin closure is issued by the Division or a U.S. District court or other court of competent jurisdiction;
Or, if the principal shall provide alternate financial assurance, as specified in these regulations and obtain the Division's written approval of such assurance, within 60 days after the date notice of cancellation is received by both the principal and the Division 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 Division that the principal has failed to perform as guaranteed by this bond, the surety(ies) shall place funds in the amount guaranteed for the operation(ies) into the standby trust fund as directed by the Division.
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 or terminate the bond by sending notice of cancellation by certified mail to the principal and to the Division at least 90 days prior to cancellation, provided, however, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the principal and the Division, as evidenced by the return receipts, and the Division has given written consent to terminate the bond.
The surety(ies) waive all rights of set off or liens against the bond.
In witness whereof, the principal and surety(ies) have executed this financial guarantee 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 of this surety bond is, at minimum, identical to the wording specified in Water Quality Control Commission Regulation No. 66 (5 CCR 1002-66) as 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: $
5 CCR 1002-66-D