Most counties, cities and local municipalities require that landfill sites prove they are financially sound in order to operate a landfill. This can include securing a surety bond, an irrevocable letter of credit, providing trust funds, or some other financial guarantee or a combination of more than one for assurance. This insures that landfill owners have the financial means to complete site closure and provide the necessary post-closure care.
Obtaining a surety bond is a multi-step process that includes submitting a bond request in the form of an application and financial package to a surety bond company. The application process will need to include: the submission of corporate and personal financial reports, resumes of owners and partners, engineering reports, closure and post-closure plans, estimated closure date, site location and watershed information and any other pertinent documentation to support the landfill operation.
Because a landfill is an ongoing project that includes maintenance for up to 30 years, the underwriter will want to make sure that the applicant is planning ahead for all stages of the lifecycle of the landfill. And in order to minimize the risk to the surety, the underwriter may require additional financial support from the applicant in the form of an irrevocable letter of credit (ILOC) or cash collateral.
Upon approval of the bond request, the underwriter will provide a quote that will most likely include: ILOC or cash collateral, the annual premium and an indemnity agreement signed by all owners with 10% or more ownership, and any affiliates/subsidiaries.
SuretyGroup.com works with various surety companies that specialize in landfill bonds and can help you get the bond you need.
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