S.C. Code Regs. § § 89-180

Current through Register Vol. 48, No. 10, October 25, 2024

Section 89-180 - The Reclamation Bond

A. In the event a surety bond will be given to secure the obligation for reclamation, Form MR-800 will be completed.

B. In the event cash or registered securities or a savings account assignment will be given to secure the obligation for reclamation, Form MR-900 will be completed.

C. In the event, cash, registered securities, or a savings account assignment will be given to secure the obligation for reclamation, Form MR-1000 must also be completed. All registered securities must be assigned and registered to the State of South Carolina. Savings accounts must be issued jointly in the name of the operator and State of South Carolina.

D. In the event an irrevocable letter of credit will be given to secure the obligation for reclamation, Form MR-1050 will be completed.

E. The following items will be verified by the Department to determine the acceptability of a letter of credit:

(1) The letter of credit must be issued by a financial institution which is federally insured and must be issued or confirmed through a South Carolina institution with a minimum asset value of fifty million ($50,000,000) dollars.

(2) The document must be immediately payable on demand by and to the State of South Carolina in the full amount of the required bond.

(3) The letter of credit must be accompanied by power of attorney granting the Department full power to assign, appropriate, apply or transfer the deposit or any portion thereof, for the satisfaction of any damages, assessments, late payment charges, penalties, or deficiencies arising out of any default in the performance of the terms covered by the bond.

(4) The letter of credit must contain a clause providing that, in the absence of notice from the financial institution to the Department at least 90 days prior to the stated or any extended expiration date not to renew the credit represented by the letter of credit, the letter of credit will be automatically renewed in full force and effect for an additional one year period.

(5) The letter of credit must authorize the Department to exercise the right to collect the full amount of credit from the financial institution in the event of either (1) a default occurring prior to the expiration date (including any extended date) or (2) failure of the operator to furnish an acceptable substitute bond at least 30 days prior to the expiration of the letter of credit if the financial institution gives proper 90 day notice of intent not to renew the letter of credit.

S.C. Code Regs. § 89-180