ARM 17.86.116. SURETY BONDS

(1) Surety bonds are subject to the following requirements: (a) the department may not accept a surety bond in excess of 10 percent of the surety company's capital surplus account as shown on a balance sheet certified by a certified public accountant; (b) the department may not accept a surety bond from a surety company for any owner in excess of three times the surety's maximum single obligation; (c) the department may not accept a surety bond from a surety company for any owner unless that surety is registered with the Montana state auditor and is listed in the United States Department of the Treasury Circular 570 as revised; (d) a power of attorney must be attached to the surety bond; (e) the surety bond must provide a requirement and a mechanism for the surety company to give prompt notice to the department and the owner of: (i) any action alleging bankruptcy or insolvency of the surety or violation that would result in suspension or revocation of the license of the surety; (ii) cancellation by the owner; and (iii) cancellation or pending cancellation by the surety; and (f) upon a determination by the department that a surety is unable to comply with the terms of the bond, the owner of a facility must be deemed to be without bond coverage. The owner shall replace the bond coverage within 90 days of notice from the department.