1. (a) The terms of issuance of government securities shall specify that proceeds from the sale of the securities shall be deposited into a financial assurance mechanism that meets the requirements of § (b).

2. (b) The securities shall have been issued and the proceeds already deposited into the financial assurance mechanism that provides equivalent protection to a trust fund by meeting the following requirements:

   1. (1) Proceeds from the sale of securities shall be used exclusively and only as applicable, to:

      1. (A) Pay costs of closure activities identified in the most recently approved closure plan; and/or
      2. (B) Pay costs of postclosure maintenance identified in the most recently approved postclosure maintenance plan; and/or
      3. (C) Pay claims by third parties for bodily injury and property damage caused by accidental occurrences; and/or
      4. (D) Pay costs of corrective action activities in the most recently approved corrective action plan; and
      5. (E) All funds shall remain inviolate against all other claims, including any claims by the operator, the operator's governing body, and the creditors of the operator and its governing body;
   2. (2) The financial operations of the provider of the financial assurance shall be regulated by a federal or state agency, or the provider shall be otherwise certain to maintain and disburse the assured funds properly;
   3. (3) If the provider of financial assurance has authority to invest revenue deposited into the mechanism, the provider shall exercise investment discretion similar to a trustee; and
   4. (4) The mechanism meets other reasonable requirements that CalRecycle determines are necessary to ensure that the assured funds shall be available in a timely manner.

Note: Authority cited: Sections 40502 and 43040, Public Resources Code. Reference: Section 43040, 43103 and 43500-43610, Public Resources Code.

History

1. New section filed 6-18-97; operative 7-18-97 (Register 97, No. 25).

2. Change without regulatory effect amending section heading and subsection (b)(4) filed 12-11-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 50).