Current through Register Vol. 54, No. 24, June 15, 2024
Section 78.307 - Collateral bonds-certificates of depositA certificate of deposit submitted as collateral for collateral bonds is subject to the following conditions:
(1) The certificate of deposit shall be made payable to the operator and shall be assigned to the Department by the operator, in writing, as required by the Department and on forms provided by the Department. The assignment shall be recorded upon the books of the financial institution issuing the certificate.(2) The certificate of deposit shall be issued by a Federally-insured or equivalently protected financial institution which is authorized to do business in this Commonwealth.(3) The certificate of deposit shall state that the financial institution issuing it waives rights of setoff or liens which it has or might have against the certificate.(4) The certificate of deposit shall be automatically renewable and fully assignable to the Department. Certificates of deposit shall state on their face that they are automatically renewable.(5) The operator shall submit certificates of deposit in amounts which will allow the Department to liquidate those certificates prior to maturity, upon forfeiture, for the full amount of the bond without penalty to the Department.(6) The Department will not accept certificates of deposit from financial institutions which have failed, refused or unduly delayed to pay, in full, on certificates of deposit or letters of credit which have previously been submitted as collateral to the Department.(7) The operator is not entitled to interest accruing after forfeiture is declared by the Department, until the forfeiture declaration is ruled invalid by a court having jurisdiction over the Department, and the ruling is final.The provisions of this § 78.307 adopted July 28, 1989, effective 7/29/1989, 19 Pa.B. 3229; amended December 16, 1994, effective 12/17/1994, 24 Pa.B. 6284. This section cited in 25 Pa. Code § 78.303 (relating to form, terms and conditions of the bond).