§ 14-34-7-4 — "Current assets" defined

Indiana § 14-34-7-4

• Jurisdiction: Indiana
• Art. 34: SURFACE COAL MINING AND RECLAMATION
• Ch. 7: Self-Bonding

Text

(a) As used in this section, "current assets"
means cash or other assets or resources that are reasonably expected to
be converted to cash or sold or consumed within:
(1) one (1) year; or
(2) the normal operating cycle of the business.
(b) As used in this section, "current liabilities" means:
(1) obligations that are reasonably expected to be paid or
liquidated within one (1) year or within the normal operating
cycle of the business; plus
(2) dividends payable on preferred stock within:
(A) one (1) quarter, if declared; or
(B) one (1) year, if a pattern of declaring dividends each quarter
is apparent from past business practice.
(c) As used in this section, "fixed assets" means plants and
equipment. The term does not include land or coal in place.
(d) Subject to subsection (f), the director may accept a self-bond
from an applicant for a permit if all of the following conditions are met
by the applicant or the applicant's corporate guarantor at the time the
self-bond is accepted:
(1) The applicant designates a suitable agent to receive service of
process in Indiana.
(2) The applicant has been in continuous operation as a business
entity for at least five (5) years immediately preceding the time of
application.
(A) The director may allow a joint venture or syndicate with
less than five (5) years of continuous operation to qualify under
this requirement if each member of the joint venture or
syndicate has been in continuous operation for at least five (5)
years immediately preceding the time of application.
(B) When calculating the period of continuous operation, the
director may exclude periods of interruption to the operation of
the business entity that:
(i) were beyond the applicant's control; and
(ii) do not affect the applicant's likelihood of remaining in
business during the proposed surface coal mining and
reclamation operations.
(3) The applicant is not subject to any outstanding cessation order
issued under IC 13-4.1-11-5 (before its repeal), IC 14-34-15-6, or
the Surface Mining Control and Reclamation Act.
(4) The applicant does not owe any civil penalties under IC 13-4.1-12 (before its repeal), IC 14-34-16, or the Surface Mining
Control and Reclamation Act.
(5) The applicant does not owe any fees under this article, IC 13-4.1 (before its repeal), or the Surface Mining Control and
Reclamation Act, and is not delinquent in the payment of any fees
or civil penalties.
(6) The applicant's permit has never been suspended under this
article or IC 13-4.1 (before its repeal), and the applicant is not
listed on the Applicant Violator System (AVS).
(7) The applicant submits financial information in sufficient detail
to demonstrate that the applicant satisfies at least one (1) of the
following criteria:
(A) The applicant has a current rating for the applicant's most
recent bond issuance of "A" or higher as issued by:
(i) Moody's Investor Service; or
(ii) Standard and Poor's Corporation.
The applicant must identify the rating service used by the
applicant and provide any additional relevant information
concerning how the service arrived at the specific ratings.
(B) The applicant has the following:
(i) A tangible net worth of at least ten million dollars
($10,000,000).
(ii) A ratio of total liabilities to net worth of not more than
2.5:1.
(iii) A ratio of current assets to current liabilities of at least
1.2:1.
The ratio requirements set forth in this clause must be met for
the year immediately preceding the application, and must be
documented for the four (4) years preceding the application. An
explanation shall be included for any year in which the ratios of
the applicant did not meet the requirements set forth in this
clause. The failure of an applicant to meet the ratio
requirements set forth in this clause for any of the four (4) years
preceding the application does not necessarily disqualify an
applicant for self-bonding under this chapter.
(C) The applicant has the following:
(i) Fixed assets in the United States that total at least twenty
million dollars ($20,000,000).
(ii) A ratio of total liabilities to net worth of not more than
2.5:1.
(iii) A ratio of current assets to current liabilities of at least
1.2:1.
The ratio requirements set forth in this clause must be met for
the applicant's fiscal year immediately preceding the
application, and must be documented for the four (4) years
preceding the application. An explanation shall be included for
any year in which the ratios of the applicant did not meet the
requirements set forth in this clause. The failure of an applicant
to meet the ratio requirements set forth in this clause for any of
the four (4) years preceding the application does not necessarily
disqualify an applicant for self-bonding under this chapter.
(8) The applicant submits the following:
(A) Financial statements for the most recently completed fiscal
year accompanied by a report prepared by an independent
certified public accountant:
(i) in conformity with generally accepted accounting
principles; and
(ii) containing the accountant's audit opinion or review
opinion of the financial statements with no adverse opinion.
(B) Unaudited financial statements for completed quarters in
the current fiscal year.
(C) Comparative financial data from a five (5) year period, that
must include a comparative income statement and a
comparative balance sheet.
(D) A statement listing:
(i) every lien filed against any assets of the applicant in any
jurisdiction in the United States for an amount that is more
than two percent (2%) of the applicant's net worth;
(ii) every action pending against the applicant;
(iii) every judgment rendered against the applicant within the
seven (7) years preceding the application that remains
unsatisfied and for an amount that is more than two percent
(2%) of the applicant's net worth; and
(iv) any petitions or actions in bankruptcy against the
applicant, including actions for reorganization.
(E) Additional unaudited information requested by the director.
(e) If an applicant submits financial information to demonstrate that
the applicant satisfies the criteria set forth in subsection (d)(7)(B) or
(d)(7)(C), the two (2) ratios set forth in subsection (d)(7)(B) or
(d)(7)(C) shall be calculated with the proposed self-bond amount
included in the current liabilities or total liabilities for the year of the
application. The operator may deduct from the total liabilities the costs
currently accrued for reclamation that appear on the balance sheet
current in the year of the application.
(f) Notwithstanding subsection (d)(7), the director may not accept
a self-bond from an applicant unless the financial ratios of the applicant
are at least as favorable as those listed for the medium performers in
the Dun and Bradstreet listing of Industry Norms and Key Business
Ratios.
(g) Each lien, action, and petition listed under subsection (d)(8)(E)
must be identified by the named parties, the jurisdiction in which the
matter was filed, the case number, and the final disposition or the
current status of any action still pending.
[Pre-1995 Recodification Citations: 13-4.1-6.3-2;
13-4.1-6.3-3; 13-4.1-6.3-4; 13-4.1-6.3-8.]

Legislative History

As added by P.L.1-1995, SEC.27. Amended by P.L.176-1995, SEC.13.