1. (a) If:

   1. (1) the owner or operator of an underground storage tank is in bankruptcy, reorganization, or arrangement under the federal bankruptcy law; or

   2. (2) despite the exercise of reasonable diligence, no state or federal court could obtain jurisdiction over an owner or operator likely to be solvent at the time of judgment;

      any claim arising from conduct for which evidence of financial responsibility is provided may be asserted directly against the guarantor.

2. (b) In an action based upon a claim under subsection (a), the guarantor may invoke:

   1. (1) all rights and defenses that would have been available to the owner or operator if the action had been brought against the owner or operator by the claimant; and
   2. (2) all rights and defenses that would have been available to the guarantor if an action had been brought against the guarantor by the owner or operator.

3. (c) The total liability of a guarantor under this section is limited to the aggregate amount in which the guarantor has provided evidence of financial responsibility for the owner or operator of an underground storage tank. This section does not do any of the following:

   1. (1) Limit any other liability of a guarantor to the owner or operator of an underground storage tank, such as liability for bad faith in:

      1. (A) negotiating; or

      2. (B) failing to negotiate;

         the settlement of any claim.

   2. (2) Diminish the liability of any person under the following:

      1. (A) Section 107 or 111 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607 or 9611).

      2. (B) Any other applicable law.

         [Pre-1996 Recodification Citation: 13-7-20-17(b), (c).]

As added by P.L.1-1996, SEC.13.