38-14.3 Surface Mining and Reclamation Bond Fund
Download pdf
Loading PDF...
<![CDATA[CHAPTER 38-14.3SURFACE MINING AND RECLAMATION BOND FUND38-14.3-01. Definitions. In this chapter:1."Bond" means a bond required of a permittee under chapter 38-14.1.2."Fund" means the surface coal mining and reclamation bond fund.3."Permit" means a surface coal mining and reclamation operation permit approved by<br>the public service commission under chapter 38-14.1.4."Permittee" means a person holding a permit.38-14.3-02. Surface coal mining and reclamation bond fund - Appropriation. Theindustrial commission may establish a surface coal mining and reclamation bond fund to be<br>maintained at the Bank of North Dakota. All moneys collected and received under this chapter<br>are appropriated to the commission for the purposes provided for in this chapter.38-14.3-03. Bond coverage available to permittees. The fund may provide bonds forthe faithful performance of all surface coal mining laws, rules, and permit terms and conditions.<br>An application for a bond may be made to the industrial commission, which shall approve or<br>disapprove the application. The decision of the industrial commission may not be appealed. The<br>industrial commission may establish conditions and require information and such guarantee and<br>indemnity by the permittee as the industrial commission deems necessary for the preservation of<br>the fund.38-14.3-04. Investment of fund. Investment of the fund is under the supervision of theBank of North Dakota.38-14.3-05. Commission may employ staff. The industrial commission may employstaff and enter into public and private contracts as may be necessary to operate the fund. The<br>salaries of employees and other expenditures for the operation of the fund must be paid out of<br>the fund.38-14.3-06. Premiums - Amount and to whom paid. The premium for a bond underthis chapter must be set by the industrial commission. Premiums must be paid in advance to the<br>industrial commission and deposited in the fund.38-14.3-07. Reinsurance contracts - Revenue bonds - Guarantees. The industrialcommission shall do all things necessary to preserve the fund and ensure the ability of the fund<br>to pay claims.The industrial commission is granted all powers necessary to effectuate thepurposes of this chapter, including but not limited to the power to:1.Contract for reinsurance of any risk against which a bond is issued under this<br>chapter. A contract for reinsurance may be entered into without public bids and<br>must be approved by the insurance commissioner.2.Issue evidences of indebtedness. The principal of, and interest on, evidences of<br>indebtedness may be paid only from the fund. The evidences of indebtedness are<br>not a debt of the state of North Dakota or of any officer or agent of the state within<br>the meaning of any statutory or constitutional provision and shall contain a statement<br>to that effect on their face. The evidences of indebtedness may be sold at public or<br>private sale and must contain the terms and provisions set by the industrial<br>commission.Any state department or public fund may invest its funds in thepurchase of the evidences of indebtedness. The evidences of indebtedness are not<br>subject to taxation by the state or by any political subdivision of the state.Page No. 13.Require, before issuing a bond, that a permittee guarantee and indemnify the fund<br>against any loss and secure the guarantee and indemnity by the pledge or posting of<br>real or personal property under terms and conditions set by the industrial<br>commission. The industrial commission may not require the pledge or posting of<br>property if the fund's reserves are sufficient to ensure the payment of all claims<br>against it. The liability of a permittee under a guarantee or indemnity agreement<br>under this chapter is limited to the payment of any claims against the bond issued<br>for the permittee.38-14.3-08. Claims - How paid. All claims against bonds provided for by this chaptermust be paid out of the fund in an amount not exceeding the face amount of the bond.38-14.3-09. Industrial commission may adopt rules. The industrial commission mayadopt rules necessary to carry out this chapter.Page No. 2Document Outlinechapter 38-14.3 surface mining and reclamation bond fund]]>