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This is an obsolete version of the rule. Please click on the rule number to view the current version.

17.86.116    SURETY BONDS

(1) Surety bonds are subject to the following requirements:

(a) the department may not accept a surety bond in excess of 10 percent of the surety company's capital surplus account as shown on a balance sheet certified by a certified public accountant;

(b) the department may not accept a surety bond from a surety company for any owner in excess of three times the surety's maximum single obligation;

(c) the department may not accept a surety bond from a surety company for any owner unless that surety is registered with the Montana state auditor and is listed in the United States Department of the Treasury Circular 570 as revised;

(d) a power of attorney must be attached to the surety bond;

(e) the surety bond must provide a requirement and a mechanism for the surety company to give prompt notice to the department and the owner of:

(i) any action alleging bankruptcy or insolvency of the surety or violation that would result in suspension or revocation of the license of the surety;

(ii) cancellation by the owner; and

(iii) cancellation or pending cancellation by the surety; and

(f) upon a determination by the department that a surety is unable to comply with the terms of the bond, the owner of a facility must be deemed to be without bond coverage. The owner shall replace the bond coverage within 90 days of notice from the department.

 

History: 75-26-310, MCA; IMP, 75-26-304, MCA; NEW, 2018 MAR p. 94, Eff. 1/13/18.

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