Definitions of Terms as Used in This Subpart

Section 724 Section 724.241  Definitions of Terms as Used in This Subpart For the purposes of this Subpart H, the following terms have the given meanings: a)         "Closure plan" means the plan for closure prepared in accordance with the requirements of Section 724.212. b)         "Current closure cost estimate" means that the most recent of the estimates prepared in accordance with Section 724.242(a), (b), and (c). c)         "Current post-closure cost estimate" means the most recent of the estimates prepared in accordance with Section 724.244(a), (b), and (c). d)         "Parent corporation" means a corporation that directly owns at least 50 percent of the voting stock of the corporation which is the facility owner or operator; the latter corporation is deemed a "subsidiary" of the parent corporation. e)         "Post-closure plan" means the plan for post-closure care prepared in accordance with the requirements of Sections 724.217 through 724.220. f)         The following terms are used in the specifications for the financial test for closure, post-closure care, and liability coverage.  The definitions are intended to assist in the understanding of these regulations and are not intended to limit the meanings of terms in a way that conflicts with generally accepted accounting practices. "Assets" means all existing and all probable future economic benefits obtained or controlled by a particular entity. "Current assets" means cash or other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. "Current liabilities" means obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets or the creation of other current liabilities. "Current plugging and abandonment cost estimate" means the most recent of the estimates prepared in accordance with 35 Ill. Adm. Code 704.212(a), (b), and (c). "Independently audited" refers to an audit performed by an independent certified public accountant in accordance with generally accepted auditing standards. "Liabilities" means probable future sacrifices of economic benefits arising from present obligations to transfer assets or provide services to other entities in the future as a result of past transactions or events. "Net working capital" means current assets minus current liabilities. "Net worth" means total assets minus total liabilities and is equivalent to owner's equity. "Tangible net worth" means the tangible assets that remain after deducting liabilities; such assets would not include intangibles, such as goodwill and rights to patents or royalties. g)         In the liability insurance requirements the terms "bodily injury" and "property damage" have the meanings given below.  The Board intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry.  The definitions given below of several of the terms are intended to assist in the understanding of these regulations and are not intended to limit their meanings in a way that conflicts with general insurance industry usage. "Accidental occurrence" means an accident, including continuous or repeated exposure to conditions, that results in bodily injury or property damage neither expected nor intended from the standpoint of the insured. "Bodily injury" means bodily injury, sickness, or disease sustained by a person, including death resulting from any of these at any time. However, this term does not include those liabilities that, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury. BOARD NOTE:  Derived from the Insurance Services Office, Inc. definition of this term. "Environmental damage" means the injurious presence in or upon land, the atmosphere, or any watercourse or body of water of solid, liquid, gaseous, or thermal contaminants, irritants, or pollutants. BOARD NOTE:  Derived from the Insurance Services Office, Inc. definition of this term.  This term is used in the definition of "pollution incident". "Legal defense costs" means any expenses that an insurer incurs in defending against claims of third parties brought under the terms and conditions of an insurance policy. "Nonsudden accidental occurrence" means an occurrence that takes place over time and involves continuous or repeated exposure. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. BOARD NOTE:  Derived from the Insurance Services Office, Inc. definition of this term.  This definition is used in the definition of "pollution incident". "Pollution incident" means emission, discharge, release, or escape of pollutants into or upon land, the atmosphere or any watercourse or body of water, provided that such emission, discharge, release, or escape results in "environmental damage".  The entirety of any such emission, discharge, release, or escape must be deemed to be one "pollution incident". "Waste" includes materials to be recycled, reconditioned, or reclaimed.  The term "pollution incident" includes an "occurrence". BOARD NOTE:  Derived from the Insurance Services Office, Inc. definition of this term.  This definition is used in the definition of "property damage". "Property damage" means as follows: Either of the following: Physical injury to, destruction of or contamination of tangible property, including all resulting loss of use of that property; or Loss of use of tangible property that is not physically injured, destroyed or contaminated, but has been evacuated, withdrawn from use or rendered inaccessible because of a "pollution incident". This term does not include those liabilities that, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. BOARD NOTE:  Derived from the Insurance Services Office, Inc. definition of this term. "Sudden accidental occurrence" means an occurrence that is not continuous or repeated in nature. h)         "Substantial business relationship" means the extent of a business relationship necessary under applicable state law to make a guarantee contract issued incident to that relationship valid and enforceable.  A "substantial business relationship" must arise from a pattern of recent or ongoing business transactions, in addition to the guarantee itself, such that the Agency can reasonably determine that a substantial business relationship currently exists between the guarantor and the owner or operator that is adequate consideration to support the obligation of the guarantee relating to any liability towards a third party.  "Applicable state law", as used in this subsection (h), means the laws of the State of Illinois and those of any sister state that govern the guarantee and the adequacy of the consideration. BOARD NOTE:  Derived from 40 CFR 264.141(h) (2017) and the discussion at 53 Fed. Reg. 33938, 33941-33943 (Sep. 1, 1988).  This term is also independently defined in 35 Ill. Adm. Code 725.141(h) and 727.240(b)(8).  Any Agency determination that a substantial business relationship exists is subject to Board review pursuant to Section 40 of the Act.