§ 27-1325. Financial responsibility provisions.

1. The department shall promulgate regulations regarding financial
responsibility for the implementation of an inactive hazardous waste
disposal site remedial program.

2. Financial responsibility required by subdivision one of this
section may be established in accordance with regulations promulgated by
the commissioner by any one, or any combination, of the following:
insurance, guarantee, surety bond, letter of credit, or qualification as
a self-insurer. In promulgating requirements under this section, the
commissioner is authorized to specify policy or other contractual terms,
conditions, or defenses which are necessary or are unacceptable in
establishing such evidence of financial responsibility in order to
effectuate the purposes of this article.

3. In any case where the responsible person is in bankruptcy,
reorganization, or arrangement pursuant to the Federal Bankruptcy Code
or where, with reasonable diligence, jurisdiction in any state or
federal court within the state cannot be obtained over a responsible
person likely to be solvent at the time of judgment, any claim arising
from conduct for which evidence of financial responsibility shall be
provided under this section may be asserted directly against the
guarantor providing such evidence of financial responsibility. In the
case of any action pursuant to this subdivision, such guarantor shall be
entitled to invoke all rights and defenses which would have been
available to the responsible person if any action had been brought
against the responsible person by the claimant and which would have been
available to the guarantor if an action had been brought against the
guarantor by the responsible person.

4. The total liability of any guarantor shall be limited to the
aggregate amount which the guarantor has provided as evidence of
financial responsibility to the responsible person under this chapter.
Nothing in this subdivision shall be construed to limit any other state
or federal statutory, contractual or common law liability of a guarantor
to its responsible person including, but not limited to, the liability
of such guarantor for bad faith either in negotiating or in failing to
negotiate the settlement of any claim. Nothing in this subdivision shall
be construed to diminish the liability of any person under section
27-1313 of this article or other applicable law.

5. For the purpose of this section, the term "guarantor" means any
person, other than the responsible person, who provides evidence of
financial responsibility for a responsible person under this section.