N.Y. Environmental Conservation Law § 27-1325: Financial responsibility provisions

§ 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.