Bankruptcy or other incapacity of owner or operator or provider of financial assurance

Rule 71. Section 280.114 is amended to read as follows: Section 280.114. (a) Within 10 days after commencement of a voluntary or involuntary proceeding under title 11 (bankruptcy) of the United States Code naming an O/O as debtor, the O/O shall notify the director of the implementing agency, by certified mail, of the commencement of a proceeding and submit the appropriate forms listed in section 280.111(b) documenting current financial responsibility. (b) Within 10 days after commencement of a voluntary or involuntary proceeding under title 11 (bankruptcy) of the United States Code naming a guarantor providing financial assurance as debtor, the guarantor shall notify the O/O, by certified mail, of the commencement of a proceeding as required under the terms of the guarantee specified in section 280.96. (c) Within 10 days after commencement of a voluntary or involuntary proceeding under title 11 (bankruptcy), of the United States Code naming a local government O/O as debtor, the local government O/O shall notify the director of the implementing agency, by certified mail, of the commencement of a proceeding and submit the appropriate forms listed in section 280.111(b) documenting current financial responsibility. (d) Within 10 days after commencement of a voluntary or involuntary proceeding under title 11 (bankruptcy), of the United States Code naming a guarantor providing a local government financial assurance as debtor, the guarantor shall notify the local government O/O, by certified mail, of the commencement of a proceeding as required under the terms of the guarantee specified in section 280.106.

(e) An O/O who obtains financial assurance by a mechanism other than the financial test of self-insurance will be deemed to be without the required financial assurance in the event of a bankruptcy or the incapacity of its provider of financial assurance or a suspension or revocation of the authority of the provider of financial assurance to issue a guarantee, insurance policy, risk retention group coverage policy, surety bond, letter of credit, or state-required mechanism. The O/O shall obtain alternate financial assurance as specified in this subpart within 30 days after receiving notice of an event specified in this subsection. If the O/O does not obtain alternate coverage within 30 days after notification, the O/O shall notify the director of the implementing agency. (f) Within 30 days after receipt of notification that a state fund or other state assurance has become incapable of paying for assured corrective action or third-party compensation costs, the O/O shall obtain alternate financial assurance.

History: 1998-2000 AACS; 2018 AACS.