State of California
California Integrated Waste Management Board
TRUST AGREEMENT
Trust Account Number:___________________________________________________
This Agreement is entered into as of____________________________ by and between:
(Date)
GRANTOR
TRUSTEE
Operator Name:
Trustee Name:
Address:
Address:
Phone Number:
Corporation
Association
Incorporated in the State of ________________________
Partnership
Proprietorship
A National Bank
In the State of
TERMS OF AGREEMENT
WHEREAS, the California Integrated Waste Management Board (CIWMB) has established regulations applicable to the
Grantor in Title 27, California Code of Regulations, Division 2, Subdivision 1, Chapter 6, requiring that an operator of a solid waste
disposal facility shall provide assurance that funds will be available when needed for closure and/or postclosure maintenance and/or
corrective action and/or third party operating liability claims of the facility, and
WHEREAS, the Grantor has elected to establish a trust to provide all or part of such financial assurance for the facilities
identified herein, and
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this
agreement, and the Trustee is willing to act as trustee,
NOW THEREFORE, the Grantor and Trustee agree as follows:
Section 1. Definitions. As used in this Agreement:
(a) The term "Grantor" means the operator who enters into this Agreement and any successors or assigns of the Grantor.
(b) The term "Trustee" means the Trustee who enters into this Agreement and any successor Trustee.
(c) The term "CIWMB" means State of California, Integrated Waste Management Board or its designee.
(d) The term "Beneficiary" means the CIWMB, or any third party claimants who satisfy the requirements either of Section
4a(a) or 4a(b) of this Agreement.
Section 2. Identification of Facilities Cost Estimates and Coverage Amounts. This Agreement pertains to the facilities,
cost estimates, and determination of primary or excess coverage identified on attached Schedule A (for each facility identified in
Schedule A, list the solid waste information system number, name, address, the current closure and/or postclosure cost estimates
and/or corrective action cost estimates and/or operating liability coverage (indicate the closure and postclosure amounts and
corrective action and operating liability coverage amounts separately), or portions thereof for which financial assurance is
demonstrated by this Agreement).
Section 3. Establishment of Fund for Closure and/or Postclosure and/or Corrective Action and/or operating liability. The
Grantor and the Trustee hereby establish a trust fund, the "Fund," for the benefit of the CIWMB. The Grantor and the Trustee intend
that no third party have access to the Fund except as herein provided. The Fund is established initially as consisting of the property,
which is acceptable to the Trustee, described in Schedule B attached hereto. Such property and any other property subsequently
transferred to the Trustee is referred to as the Fund, together with all earnings and profits thereon, less any payments or
distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN TRUST, as hereinafter
provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor any duty
to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the CIWMB.
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Section 3a. Establishment of Fund for Operating Liability. The Grantor and the Trustee hereby establish a trust fund,
hereinafter the Fund for the benefit of any and all third parties injured or damaged by accidental occurrences arising from operation
of the facility(ies) covered by this trust agreement, in the amounts of _________per occurrence and _________annual aggregate for
accidental occurrences, except that the Fund is not established for the benefit of third parties for the following:
(a) "Bodily injury" or "property damage" expected or intended from the standpoint of the Grantor. This exclusion does not
apply to "bodily injury" resulting from the use of reasonable force to protect persons or property.
(b) "Bodily injury" or "property damage" for which the Grantor is obligated to pay damages by reason of the assumption of
liability in a contract or agreement. This exclusion does not apply to liability for damages that the Grantor would be obligated to pay
in the absence of the contract or agreement.
(c) Any obligation of the Grantor under a workers' compensation, disability benefits, or unemployment compensation law
or any similar law.
(d) "Bodily injury" to:
(1) An employee of the Grantor arising from, and in the course of, employment by the Grantor; or
(2) The spouse, child, parent, brother, or sister of an employee as a consequence of (1) above.
This exclusion applies:
(1) Whether the Grantor may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay another person who must pay damages because of the
injury.
(e) "Bodily injury" or "property damage" arising out of the ownership, maintenance, use, or entrustment to others of any
aircraft, "auto", or watercraft owned or operated by or rented or loaned to the Grantor. Use includes operation and loading and
unloading. This exclusion does not apply to:
(1) Parking an "auto" on, or on the ways next to, premises the Grantor owns or rents, provided the "auto" is not
owned by or rented or loaned to the Grantor.
(2) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in paragraph
(F)2. or (F)3. of the definition of "mobile equipment" (27 CCR, Division 2, Subdivision 1, Chapter 6).
(f) "Property damage" to:
(1) Any property owned, rented, or occupied by the Grantor;
(2) Premises that are sold, given away, or abandoned by the Grantor if the "property damage" arises out of any
part of those premises;
(3) Property loaned to the Grantor;
(4) Personal property in the care, custody, or control of the Grantor;
(5) That particular part of real property on which the Grantor or any contractors or subcontractors working
directly or indirectly on behalf of the Grantor are performing operations, if the "property damage" arises out of these operations; or
(6) That particular part of any property that must be restored, repaired or replaced because the Grantor's work
was incorrectly performed on it.
Section 4. Payment for Closure and/or Postclosure Maintenance and/or Corrective Action. The Trustee shall make
payments from the Fund as the CIWMB shall direct, in writing, to provide for the payment of the costs of closure and/or postclosure
maintenance and/or corrective action of the facilities covered by this Agreement. The Trustee shall reimburse the Grantor or other
persons as specified by the CIWMB from the Fund for closure and/or postclosure and/or corrective action expenditures in such
amounts as the CIWMB shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the Beneficiary
CIWMB specifies in writing. Upon refund, such funds shall not constitute part of the Fund as defined herein.
Section 4a. Payment for Bodily Injury or Property Damage. The Trustee shall satisfy a third party liability claim by making
payments from the Fund only on receipt of one of the following documents:
(a) Certification from the Grantor and the Beneficiary that the liability claim should be paid. The certification must be
worded as follows:
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CERTIFICATION OF VALID CLAIM
The undersigned, as parties [Grantor] and [Name and Address of Beneficiary(ies)], hereby certify that the claim of bodily injury
and/or property damage caused by an accidental occurrence arising from the operation of [Grantor's] solid waste facility should be
paid in the amount of $
Notary
/
Date
/
Grantor's Signature
Notary
/
Date
/
Claimant(s) Signature
(b) A valid final court order establishing a judgment against the grantor for bodily injury or property damage caused by
accidental occurrences arising from the operation of the Grantor's facility or group of facilities.
Section 5. Payments Comprising the Fund. Payments made to the Trustee for the Fund shall consist of cash or
securities acceptable to the Trustee.
Section 6. Trustee Management. The Trustee shall invest and reinvest the principal and income of the Fund and keep
the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies
and guidelines that the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of
this Section. In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge his or her duties
with respect to the trust fund solely in the interest of the CIWMB and with the care, skill, prudence and diligence under the
circumstances then prevailing that persons of prudence, acting in a like capacity and familiar with such matters, would use in the
conduct of an enterprise of a like character and with like aims; except that:
(i) Securities or other obligations of the Grantor, or any other operator or owner of the landfills, or any of their affiliates as
defined in the Investment Company Act of 1940, as amended, 15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are
securities or other obligations of the Federal or State Government.
(ii) The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to the extent insured by an
agency of the Federal or State Government; and
(iii) The Trustee is authorized to hold cash awaiting investment or distribution uninvested for a reasonable time and
without liability for the payment of interest thereon.
Section 7. Commingling and Investment. The Trustee is expressly authorized in its discretion:
(a) To transfer from time to time any or all of the assets of the Fund to any common, commingled or collective trust fund
created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled with the
assets of other trusts participating therein; and
(b) To purchase shares in any investment company registered under the Investment Company Act of 1940, 15 U.S.C.
80a-1 et seq., including one that may be created, managed, underwritten, or to which investment advice is rendered or the shares of
which are sold by the Trustee. The Trustee may vote such shares in its discretion.
Section 8. Express Powers of Trustee. Without in any way limiting the powers and discretion conferred upon the Trustee
by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:
(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale. No
person dealing with the Trustee shall be bound to see to the application of the purchase money or to inquire into the validity or
expediency of any such sale or other disposition;
(b) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate to carry out the powers herein granted;
(c) To register any securities held in the Fund in its own name or in the name of a nominee and to hold any security in
bearer form or in book entry, or to combine certificates representing such securities with certificates of the same issue held by the
Trustee in other fiduciary capacities, or to deposit or arrange for the deposit of such securities in a qualified central depositary even
though, when so deposited, such securities may be merged and held in bulk in the name of the nominee of such depositary with
other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the United
States Government, or any agency or instrumentality thereof, with a Federal Reserve Bank, but the books and records of the
Trustee shall at all times show that all such securities are part of the Fund;
(d) To deposit any cash in the Fund in interest-bearing accounts maintained or savings certificates issued by the Trustee,
in its separate corporate capacity, or in any other banking institution affiliated with the Trustee, to the extent insured by an agency of
the Federal or State Government; and
(e) To compromise or otherwise adjust all claims in favor of or against the Fund.
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Section 9. Taxes and Expenses. All taxes of any kind that may be assessed or levied against or in respect of the Fund
and all brokerage commissions incurred by the Fund shall be paid from the Fund. All other expenses incurred by the Trustee in
connection with the administration of this Trust, including fees for legal services rendered to the Trustee, the compensation of the
Trustee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid
from the Fund.
Section 10. Annual Valuation. The Trustee shall annually, at least 30 days prior to the anniversary date of establishment
of the Fund, furnish to the Grantor and the CIWMB a statement confirming the value of the Trust. Any securities in the Fund shall
be valued at market value as of no more than 60 days prior to the anniversary date of establishment of the Fund. The failure of the
Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and to the CIWMB
shall constitute a conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the
Trustee with respect to matters disclosed in the statement.
Section 11. Advice of Counsel. The Trustee may from time to time consult with counsel, who may be counsel to the
Grantor, with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The
Trustee shall be fully protected, to the extent permitted by law, in acting on the advice of counsel.
Section 12. Trustee Compensation. The Trustee shall be entitled to reasonable compensation for its services as agreed
upon in writing from time to time with the Grantor.
Section 13. Successor Trustee. The Trustee may resign or the Grantor may replace the Trustee, but such resignation or
replacement shall not be effective until the Grantor has appointed a successor trustee and this successor accepts the appointment.
The successor trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the successor
trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor trustee the funds and
properties then constituting the Fund. If, for any reason, the Grantor cannot or does not act in the event of the resignation of the
Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor trustee or for instructions.
The successor trustee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, CIWMB,
and the present Trustee by certified mail ten days before such change becomes effective. Any expenses incurred by the Trustee as
a result of any of the acts contemplated by this Section shall be paid as provided in Section 9.
Section 14. Instructions to the Trustee. All orders, requests, and instructions by the Grantor to the Trustee shall be in
writing, signed by such persons as are designated in the attached Exhibit A or such other designees as the Grantor may designate
by amendment to Exhibit A. The Trustee shall be fully protected in acting without inquiry in accordance with the Grantor's orders,
requests, and instructions. All orders, requests, and instructions by the CIWMB to the Trustee shall be in writing, signed by the
CIWMB designees, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and
instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a
change or a termination of the authority of any person to act on behalf of the Grantor or the CIWMB hereunder has occurred. The
Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and/or CIWMB, except
as provided for herein.
Section 15. Notice of Nonpayment. The Trustee shall notify the Grantor, and CIWMB, by either registered or certified
mail, within 10 days following the expiration of the 30-day period after the anniversary of the establishment of the Trust, if no
payment is received from the Grantor during that period. After the pay-in period is completed, the Trustee shall not be required to
send a notice of nonpayment.
Section 15a. Notice of Nonpayment. If a payment for bodily injury or property damage is made under Section 4a of this
trust, the Trustee shall notify the Grantor of such payment and the amount(s) thereof within five (5) working days. The Grantor shall,
within one year of such payment, either make payments to the trustee in amounts sufficient to cause the trust to return to its value
immediately prior to the payment of claims under Section 4a, or shall provide written proof to the Trustee that other financial
assurance for operating liability coverage has been obtained equaling the amount necessary to return the trust to its value prior to
the payment of claims. If the Grantor dies not either make payments to the Trustee or provide the Trustee with such proof, the
Trustee shall, within 10 working days after the anniversary date of the payment, provide a written notice of nonpayment to the
CIWMB.
Section 16. Amendment of Agreement. This agreement may be amended by an instrument in writing executed by the
Grantor, Trustee, and CIWMB, or by the Trustee and CIWMB if the Grantor ceases to exist.
Section 17. Irrevocability and Termination. Subject to the right of the parties to amend this Agreement as provided in
Section 16, this Trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee,
and the CIWMB, or by the Trustee and the CIWMB, if the Grantor ceases to exist. Upon termination of the Trust, all remaining trust
property, less final trust administration expenses, shall be delivered to the Grantor. The CIWMB will agree to termination of the trust
when the operator substitutes alternate financial assurance or is released as specified in 27 CCR, Division 2, Subdivision 1, Chapter
6.
Section 18. Immunity and Indemnification. The Trustee shall not incur personal liability of any nature in connection with
any act or omission, made in good faith, in the administration of this Trust, or in carrying out any directions by the Grantor or the
CIWMB issued in accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from
the Trust Fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act in
conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor fails to provide such
defense.
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Section 19. Choice of Law. This Agreement shall be administered, construed, and enforced according to the laws of the
State of California.
Section 20. Interpretation. As used in this Agreement, words in the singular include the plural and words in the plural
include the singular. The descriptive headings for each Section of this Agreement shall not affect the interpretation or the legal
efficacy of this Agreement.
IN WITNESS WHEREOF the parties have caused this Agreement to be executed by their respective officers duly
authorized and their corporate seals to be hereunto affixed and attested as of the date first above written. The parties below certify
and sign under the laws of the State of California that the information in this document is true and correct to the best of his or her
knowledge, and is being executed in accordance with the requirements of 27 CCR, Division 2, Subdivision 1, Chapter 6.
Signature of Grantor:
Title:
Typed or Printed Name of Person Signing:
Seal:
Attest: Title
Signature of Trustee:
Title:
Typed or Printed Name of Person Signing:
Seal:
Attest: Title
PRIVACY STATEMENT
The Information Practices Act (California Civil Code Section 1798.17) and the Federal Privacy Act (5 U.S.C. 552a(e)(3)) require that
this notice be provided when collecting personal information from individuals.
AGENCY REQUESTING INFORMATION: California Integrated Waste Management Board.
UNIT RESPONSIBLE FOR MAINTENANCE OF FORM: Financial Assurances Section, California Integrated Waste Management
Board, 1001 I Street, P.O. Box 4025, Sacramento, California 95812-4025. Contact the Manager, Financial Assurances Section, at
(916) 341-6000.
AUTHORITY: Public Resources Code section 43600 et seq.
PURPOSE: The information provided will be used to verify adequate financial assurance of solid waste disposal facilities listed.
REQUIREMENT: Completion of this form is mandatory. The consequence of not completing this form is denial or revocation of a
permit to operate a solid waste disposal facility.
OTHER INFORMATION: After review of this document, you may be requested to provide additional information regarding the
acceptability of this mechanism.
ACCESS: Information provided in this form may be provided to the U.S. Environmental Protection Agency, State Attorney General,
Air Resources Board, California Department of Toxic Substances Control, Energy Resources Conservation and Development
Commission, Water Resources Control Board, and California Regional Water Quality Control Boards. For more information or
access to your records, contact the California Integrated Waste Management Board, 1001 I Street, P.O. Box 4025, Sacramento,
California 95812-4025, (916) 341-6000.
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EXHIBIT A
TRUST AGREEMENT BY AND BETWEEN _____________________________
AND THE _____________________________________________________
As provided for in Section 14 of the Trust Agreement, the persons, other than the officials of the CIWMB identified in
Section 14 of the Trust Agreement, who, until this Exhibit A is amended, shall have the authority to make orders, requests, and
instructions to the Trustee are:
Officials of the Grantor.
Officials of the Grantor who have authority to give instructions are:
Name:
Title:
EXHIBIT A
Any orders, requests or instructions by the Grantor to the Trustee, pursuant to the foregoing Agreement, may be signed
by any one or more of the following persons:
Name:
Title:
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TRUST AGREEMENT/DEPOSITORY TRUST
SCHEDULE A
This Agreement demonstrates financial assurance for the following cost estimate(s) and/or operating liability for the following
facility(ies):
Solid Waste Information
System Number
Name of Facility(ies)
Address of Facility(ies)
Cost Estimates and or
operating liability coverage
For Which Financial
Assurance is Being
Demonstrated by This
Agreement
Closure:
Postclosure:
Corrective Action:
Per Occurrence:
Annual Aggregate:
Total:
The cost estimates listed here were last adjusted on
CIWMB 100 (12/01 11/06)
____________________________
Date
Page 7 of 8
TRUST AGREEMENT (ONLY)
SCHEDULE B
The fund is established initially as consisting of the following:
$
,
(Spell out dollar amount)
as evidenced by
(Name of institution drawn on)
Check Number _______________________________.
Dated
I hereby certify that funds have been received and deposited.
Authorized Signature:
Title:
Typed or Printed Name of Person Signing:
Address:
Phone Number of Person Signing:
DEPOSITORY TRUST AGREEMENT (ONLY)
SCHEDULE B
List of Property Comprising Trust Fund
None at the time of trust establishment. Funding of this Depository Trust Agreement is contingent upon drafts against that primary,
number
and issued by
(Surety Bond or Letter of Credit)
the
on
(Issuing Institution)
(Date)
in accordance with the terms of that
(Surety Bond or Letter of Credit)
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