§ 556.903 - Lapse of financial assurance.

§ 556.903 Lapse of bond.

Cross Reference

Link to an amendment published at 89 FR 31595, Apr. 24, 2024.

financial assurance.

(a) If your surety, guarantor, or the financial institution holding or providing your financial assurance becomes bankrupt , or insolvent, or has its charter or license suspended or revoked, any bond financial assurance coverage from that surety terminates immediately. In that event, you must promptly provide a new bond such surety, guarantor, or financial institution must be replaced. You must notify the Regional Director within 72 hours of learning of such event, and, within 30 calendar days of learning of such event, you must provide other financial assurance from a different financial assurance provider in the amount required under §§ 556.900 and 556.901 to the Regional Director and advise the Regional Director of the lapse in your previous bond., or § 550.166 of this subchapter, or § 550.1011 of this subchapter.

(b) You must notify the Regional Director within 72 hours of learning of any action filed alleging that you , are insolvent or bankrupt or that your surety, or your guarantor are guarantor, or financial institution is insolvent or bankrupt . You must notify the Regional Director within 72 hours of learning of such an action. All bonds or has had its charter or license suspended or revoked.

All surety bonds or other financial assurance instruments must require the surety, guarantor, or financial institution to timely provide this

information

required notification both to you and directly to BOEM.

[89 FR 31595, Apr. 24, 2024]