(1) The financial guarantee required of a
developer by 90-6-309(3) , MCA, to assure that property tax
prepayments will be paid as needed by local government units must, at a
minimum, meet the following requirements:
(a) The guarantee must cover the total
amount of money the developer has committed to prepay with adequate provisions
for any conditional payments provided for in the impact plan. Both the total
amount covered by the guarantee and the specific purpose of each prepayment
must be specified with sufficient clarity that it can be determined that the
guarantee
corresponds with and is sufficient to meet all prepayment commitments in the
approved impact plan;
(b) The guarantee must make the money
accessible to the board in the event of a default on the part of the developer
or the need for the board to resolve a dispute between the developer and an
affected local government unit; and
(c) The funds contained in the guarantee
mechanism must be protected from all uses not specified in or provided for by
an approved impact plan or an approved amendment to the plan.
(d) The guarantee must be provided through
a financially sound third-party financial institution that is acceptable
to the board and in which the developer does not have a significant financial
interest.
(2) The financial guarantee must be
submitted to the board in sufficient time that it may be approved by the board
and be in place before mining activities under an operating permit issued by
the department of state lands commence or prior to the time an affected local
government unit must incur a financial obligation in implementation of the
approved impact plan and in anticipation of revenues protected by the financial
guarantee, whichever occurs first.