6708.1 An owner may satisfy the requirements of § 6700 by obtaining a surety or performance bond that conforms to the requirements of this section.

6708.2 The surety company issuing the bond shall be among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the U.S. Department of the Treasury.

6708.3 Each surety bond shall be provided in the form prescribed in Appendix 67-6 of this chapter.

6708.4 Under the terms of the bond, the surety shall become liable on the bond obligation when the owner fails to perform as guaranteed by the bond. In all cases, the surety's liability is limited to the per-occurrence and annual aggregate penal sums set forth in § 6700.

6708.5 The owner who uses a surety bond to satisfy the requirements of § 6700 shall establish a standby trust fund when the surety bond is acquired.

6708.6 Under the terms of the bond, all amounts paid by the surety under the bond shall be deposited directly into the standby trust fund in accordance with instructions from the Director under § 6712. This standby trust fund shall meet the requirements specified in § 6711.

SOURCE: Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5777 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999).