§ 15-72-03 — Assets and custody

North Dakota § 15-72-03

• Jurisdiction: North Dakota
• Title 15: Education
• Ch. 15-72: Coal Mine Reclamation Trust

Text

1. Any person proposing to pledge assets to the public service commission's custody
under North Dakota Administrative Code chapter 69-05.2-12 shall certify to the public
service commission:
a. The trust will have first priority security interest in the pledged assets in
accordance with North Dakota Administrative Code chapter 69-05.2-12.
b. The person has authority to place the assets in custody under all applicable
federal and state law.
c. All other requirements of North Dakota Administrative Code chapter 69-05.2-12
have been satisfied.
2. Real property posted as a collateral bond by the person must:
a. Grant the regulatory authority a first mortgage, first deed of trust, or perfected
first-lien security interest in the real property with a right to sell or dispose of the
real property in the event of forfeiture; and
b. Include a schedule, submitted by the applicant, of the real property mortgaged or
pledged to secure the obligations under the indemnity agreement. The schedule
of the real property must allow the regulatory authority to evaluate the adequacy
of the real property offered to satisfy collateral requirements. The schedule must
include:
(1) A description of the property;
(2) The fair market value of the property, as determined by an independent
appraisal conducted by a certified appraiser; and
(3) Proof of possession and title to the real property.