(d) Documentation of legal capacity includes, but is not limited to, the following, as appropriate:

1. (1) Proof of authorization to conduct business in Arkansas, e.g., current registration with, and a valid certificate of good standing issued by, the Secretary of State; and
2. (2) Proof of proper registration of the tank system by the subsequent owner or operator.

(e) Documentation of financial capacity includes, but is not limited to, any one (1) or combination of items below that affirms, as determined by the division, that the subsequent owner or operator has sufficient assets to pay third-party claims of at least one million dollars ($1,000,000):

1. (1) An independently audited copy of the most recent annual financial statements that indicates the availability of sufficient funds;
2. (2) Copies of bank statements or other financial records that indicate availability of sufficient funds for the subsequent owner or operator to pay third-party claims;
3. (3) A letter from a financial institution or other funding agency indicating a binding commitment to provide a specified amount of funds and the uses for which the funds may be utilized; or
4. (4) In cases where funding is required but there can be no binding commitment of money until approvals are received, a letter of “intent to fund” from the appropriate funding institution indicating the amount of funds and their specified uses.

(f) Upon approval of the division that the subsequent owner or operator has both the legal and financial capacity to assume responsibility for third-party claims, the owner or operator, the subsequent owner or operator, and the division will enter into a consent administrative order, upon agreement of all parties, setting forth the following:

1. (1) The owner or operator relinquishes eligibility for Petroleum Storage Tank Trust Fund coverage for any third-party claims for damages resulting from the occurrence;
2. (2) The owner or operator acknowledges that a transfer of eligibility under this section does not affect the potential liability of the owner or operator for payment of compensatory damages to a third party; and
3. (3) The subsequent owner or operator assumes responsibility for any third-party claims for damages resulting from the occurrence.