Okla. Admin. Code § 460:20-37-3

Current through Vol. 42, No. 7, December 16, 2024

Section 460:20-37-3 - Definitions

(a)"Surety bond" means an indemnity agreement in a sum certain payable to the Department, executed by the permittee as principal and which is supported by the performance guarantee of a corporation licensed to do business as a surety in the State where the operation is located.

(b)"Collateral bond" means an indemnity agreement in a sum certain executed by the permittee as principal which is supported by the deposit with the Department of one or more of the following:

(1) A cash account, which shall be the deposit of cash in one or more federally-insured or equivalently protected accounts, payable only to the Department upon demand, or the deposit of cash directly with the Department;

(2) Negotiable bonds of the United States, a State, or a municipality, endorsed to the order of, and placed in the possession of, the Department;

(3) Negotiable certificates of deposit, made payable or assigned to the Department and placed in its possession;

(4) An irrevocable letter of credit of any bank organized or authorized to transact business in the United States, payable only to the Department upon presentation;

(5) A perfected, first-lien security interest in real property in favor of the Department; or

(6) Other investment-grade rated securities having a rating of AAA, AA, or A or an equivalent rating issued by a nationally recognized securities rating service, endorsed to the order of, and placed in the possession of, the Department.

(c)"Self-bond" means an indemnity agreement in a sum certain executed by the permittee and the parent company guarantor and made payable to the Department, with or without separate surety.

Okla. Admin. Code § 460:20-37-3