WAC 173-360-473
Appendix B -- Guarantee.
GUARANTEE
Guarantee made this [date] by name of guaranteeing entity, a
business entity organized under the laws of (name of state),
herein referred to as guarantor, to the Washington state
department of ecology and to any and all third parties, and
obligees, on behalf of [owner or operator] of [business address].
Recitals.
(1) Guarantor meets or exceeds the financial test criteria
of WAC 173-360-413 (2) or (3) and (4) and agrees to comply with
the requirements for guarantors as specified in WAC 173-360-416(2).
(2) [Owner or operator] owns or operates the following
underground storage tank(s) covered by this guarantee: [List the
number of tanks at each facility and the name(s) and address(es)
of the facility(ies) where the tanks are located. If more than
one instrument is used to assure different tanks at any one
facility, for each tank covered by this instrument, list the tank
identification number provided in the notification submitted
pursuant to WAC 173-360-200, and the name and address of the
facility.] This guarantee satisfies WAC 173-360-400 through173-360-499
requirements for assuring funding for [insert:
"Taking corrective action" and/or "compensating third parties for
bodily injury and property damage caused by" either "sudden
accidental releases" or "nonsudden accidental releases" or
"accidental releases"; if coverage is different for different
tanks or locations, indicate the type of coverage applicable to
each tank or location] arising from operating the
above-identified underground storage tank(s) in the amount of
[insert dollar amount] per occurrence and [insert dollar amount]
annual aggregate.
(3) [Insert appropriate phrase: "On behalf of our
subsidiary" (if guarantor is corporate parent of the owner or
operator); "On behalf of our affiliate" (if guarantor is a
related firm of the owner or operator); or "Incident to our
business relationship with" (if guarantor is providing the
guarantee as an incident to a substantial business relationship
with owner or operator)] [owner or operator], guarantor
guarantees to the Washington state department of ecology and to
any and all third parties that:
In the event that [owner or operator] fails to provide
alternate coverage within 60 days after receipt of a notice of
cancellation of this guarantee and the director of the Washington
state department of ecology has determined or suspects that a
release has occurred at an underground storage tank covered by
this guarantee, the guarantor, upon instructions from the
director, shall fund a standby trust fund in accordance with the
provisions of WAC 173-360-453, in an amount not to exceed the
coverage limits specified above.
In the event that the director determines that [owner or
operator] has failed to perform corrective action for releases
arising out of the operation of the above-identified tank(s) in
accordance with WAC 173-360-399, the guarantor, upon written
instructions from the director, shall fund a standby trust in
accordance with the provisions of WAC 173-360-453, in an amount
not to exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a judgment or award
based on a determination of liability for bodily injury or
property damage to third parties caused by ["sudden" and/or
"nonsudden"] accidental releases arising from the operation of
the above-identified tank(s), or fails to pay an amount agreed to
in settlement of a claim arising from or alleged to arise from
such injury or damage, the guarantor, upon written instructions
from the director, shall fund a standby trust in accordance with
the provisions of WAC 173-360-453 to satisfy such judgment(s),
award(s), or settlement agreement(s) up to the limits of coverage
specified above.
(4) Guarantor agrees that if, at the end of any fiscal year
before cancellation of this guarantee, the guarantor fails to
meet the financial test criteria of WAC 173-360-413 (2) or (3)
and (4), guarantor shall send within 120 days of such failure, by
certified mail, notice to [owner or operator]. The guarantee
will terminate 120 days from the date of receipt of the notice by
[owner or operator], as evidenced by the return receipt.
(5) Guarantor agrees to notify [owner or operator] by
certified mail of a voluntary or involuntary proceeding under
Title 11 (Bankruptcy), U.S. Code, naming guarantor as debtor,
within 10 days after commencement of the proceeding.
(6) Guarantor agrees to remain bound under this guarantee
notwithstanding any modification or alteration of any obligation
of [owner or operator] pursuant to chapter 173-360 WAC.
(7) Guarantor agrees to remain bound under this guarantee
for so long as [owner or operator] shall comply with the
applicable financial responsibility requirements of WAC 173-360-400 through 173-360-499 for the above-identified tank(s),
except that guarantor may cancel this guarantee by sending notice
by certified mail to [owner or operator], such cancellation to
become effective no earlier than 120 days after receipt of such
notice by [owner or operator], as evidenced by the return
receipt.
(8) The guarantor's obligation does not apply to any of the
following:
(a) Any obligation of [insert owner or operator] under a
workers' compensation, disability benefits, or unemployment
compensation law or other similar law;
(b) Bodily injury to an employee of [insert owner or
operator] arising from, and in the course of, employment by
[insert owner or operator];
(c) Bodily injury or property damage arising from the
ownership, maintenance, use, or entrustment to others of any
aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned, rented, loaned
to, in the care, custody, or control of, or occupied by [insert
owner or operator] that is not the direct result of a release
from a petroleum underground storage tank;
(e) Bodily damage or property damage for which [insert owner
or operator] is obligated to pay damages by reason of the
assumption of liability in a contract or agreement other than a
contract or agreement entered into to meet the requirements of
WAC 173-360-406.
(9) Guarantor expressly waives notice of acceptance of this
guarantee by the Washington state department of ecology, by any
or all third parties, or by [owner or operator].
I hereby certify that the wording of this guarantee is
identical to the wording specified in WAC 173-360-473 as such
regulations were constituted on the effective date shown
immediately below.
Effective date:
[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
[Statutory Authority: Chapter 90.76 RCW. 91-22-020 (Order
91-26), § 173-360-473, filed 10/29/91, effective 11/29/91;
90-24-017, § 173-360-473, filed 11/28/90, effective 12/29/90.]
NOTES:
Reviser's note: The brackets and enclosed material in the text of the
above section occurred in the copy filed by the agency.