§ 86-2-8. Permittee bonding required; condition; term renewal.

(a)

All Permittees will maintain a bond or other letter of credit acceptable to the County and furnish it to the Director. The surety will be payable to the County in the amount of $5,000.00 and conditioned to indemnify, defend, and hold harmless the County and all its elected and appointed officials, officers, boards, commissions, commissioners, agents, and employees against any and all claims, suits, causes of action, proceedings, and judgments made by third parties for any and all losses, damages, injuries, fees (including attorney's fees), charges, expenses (including court costs), or damages caused by Permittee's acts or omissions or any failure to comply with the provisions of this Chapter or other applicable law.

(b)

The following procedures will apply to drawing on any bond or letter of credit provided by a Permittee:

(1)

If the County notifies a Permittee of any amounts due pursuant to any applicable law, and the Permittee does not make such payment within 30 days, the County may draw the amount in question, with any applicable interest and penalties, from the bond or letter of credit after providing written notice to the Permittee and the issuing financial institution, specifying the amount and purpose of such draw.

(2)

Within three business days of a draw on the bond or letter of credit, the County will mail to the Permittee, by certified mail, return receipt requested, written notification of the amount, date, and purpose of such draw.

(3)

If at the time of a draw on the bond or letter of credit by the County, the amount available is insufficient to provide the total payment of the claim asserted in the County's draw notice, the balance of such claim will not be discharged or waived, but the County may continue to assert the same as an obligation of the Permittee to the County.

(4)

No later than 30 days after the County mails notice to the Permittee by certified mail, return receipt requested, of a draw on the bond or letter of credit, the Permittee will restore the amount of the bond or letter of credit to its original amount.

(a)

The bond will be for a term at least equal to the duration of the Operator's Permit. Cancellation of the bond, for any reason, prior to the date of expiration of the Operator's Permit will require a written notification to the Director at least 30 days prior to cancellation. The Operator's Permit will be revoked if an alternate bond, meeting the requirements of this Section, is not provided.

(b)

The Director may increase the bond amount for any Permittee, or allow alternate financial assurance mechanisms, if deemed necessary to protect the financial interests of the County or to address chronic failure to comply with this Chapter. (42-19-86.)