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LAWS OF MARYLAND

Ch. 33

a certain time; and generally relating to open-pit
mining reclamation financial security.

BY repealing and reenacting, with amendments,

Article - Natural Resources
Section 7-506(c)
Annotated Code of Maryland
(1974 Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Natural Resources

7-506.

(c) All bonds required by this section shall be on a
form provided by the Department, shall be payable to the
State of Maryland and shall be executed by the operator and
a corporate surety licensed to do business in the State.
Instead of a corporate surety, [either] ANY of the following
[is] ARE acceptable:

(1)  A deposit of cash or negotiable bonds of the
United States government. The cash deposit or market value
of the securities shall be at least equal to the required
sum of the bond. On receipt of a deposit of cash or
securities, the Department immediately shall place it with
the State Treasurer, who shall receive and hold the deposit
in trust, in the name of the State for the purposes for
which it is made. The State Treasurer is responsible for the
custody and safekeeping of the deposit. The operator,
making the deposit, may demand and receive from the State
Treasurer all or any portion of any deposited securities, if
he replaces them with other negotiable securities of the
class specified as having a market value at least equal to
the sum of the bond; [or]

(2)  A certificate of deposit in an amount
equivalent to the required bond, issued by a bank in the
State, and accompanied by written agreement of the bank to
pay on demand to the State in the event of forfeiture; OR

(3)  AN IRREVOCABLE LETTER OF CREDIT IN AN AMOUNT
IF IT IS EQUIVALENT TO THE REQUIRED BOND, ISSUED BY A BANK
IN THE STATE AND EXPRESSLY STATES THAT THE TOTAL SUM IS
GUARANTEED TO BE AVAILABLE AND PAYABLE DIRECTLY TO THE STATE
ON DEMAND IN THE EVENT OF FORFEITURE. THE IRREVOCABLE LETTER
OF CREDIT MAY NOT EXPIRE DURING THE ANTICIPATED LIFE OF THE
MINING ACTIVITIES AND THE RECLAMATION PERIOD THEREAFTER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.