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(a) the applicant has a current rating for its most recent bond issuance of "A" or higher as <br />issued by either Moody's investor service or Standard and Poor's corporation; <br />(b) the applicant has a tangible net worth of at least $10 million, a ratio of total liabilities to net <br />worth of 2.5 times or less, and a ratio of current assets to current liabilities of 1.2 times or greater; or <br />(c) the applicant's fixed assets in the United States total at least $20 million, and the applicant <br />has a ratio of total liabilities to net worth of 2.5 times or less, and a ratio of current assets to current liabilities of 1.2 <br />times or greater. <br />(4) The applicant submits: <br />(a) financial statements for the most recently completed fiscal year accompanied by a report <br />prepared by an independent certified public accountant in conformity with generally accepted accounting principles <br />and containing the accountant's audit opinion or review opinion of the financial statements with no adverse opinion; <br />(b) unaudited financial statements for completed quarters in the current fiscal year; and <br />(c) additional unaudited information as requested by the director. <br />B. The director may accept a written guarantee for an applicant's self -bond from a parent corporation <br />guarantor, if the guarantor meets the conditions of Paragraphs (1) through (4) of Subsection A of 19.8.14.1410 <br />NMAC as if it were the applicant. Such a written guarantee shall be referred to as a "corporate guarantee." The <br />terms of the corporate guarantee shall provide for the following: <br />(1) if the applicant fails to complete the reclamation plan, the guarantor shall do so or the guarantor <br />shall be liable under the indemnity agreement to provide funds to the state of New Mexico sufficient to complete the <br />reclamation plan, but not to exceed the bond amount; <br />(2) the corporate guarantee shall remain in force unless the guarantor sends notice of cancellation by <br />certified mail to the applicant and to the director at least 90 days in advance of the cancellation date, and the director <br />accepts the cancellation; <br />(3) the cancellation may be accepted by the director if the applicant obtains suitable replacement <br />bond before the cancellation date or if the lands for which the self -bond, or portion thereof, was accepted have not <br />been disturbed. <br />C. For the director to accept an applicant's self -bond, the total amount of the outstanding and <br />proposed self -bonds of the applicant for surface coal mining and reclamation operations shall not exceed 25 percent <br />of the applicant's tangible net worth in the United States. For the director to accept a corporate guarantee, the total <br />amount of the corporate guarantor's present and proposed self -bonds and guaranteed self -bonds for surface coal <br />mining and reclamation operations shall not exceed 25 percent of the guarantor's tangible net worth in the United <br />States. <br />D. If the director accepts an applicant's self -bond, an indemnity agreement shall be submitted subject <br />to the following requirements: <br />(1) the indemnity agreement shall be executed by all persons and parties who are to be bound by it, <br />including the corporate guarantor, and shall bind each jointly and severally; <br />(2) corporations applying for a self -bond, and parent and non -parent corporations guaranteeing an <br />applicant's self -bond shall submit an indemnity agreement signed by two corporate officers who are authorized to <br />bind their corporations; a copy of such authorization shall be provided to the director along with an affidavit <br />certifying that such an agreement is valid under all applicable federal and state laws; in addition, the guarantor shall <br />provide a copy of the corporate authorization demonstrating that the corporation may guarantee the self -bond and <br />execute the indemnity agreement; <br />(3) if the applicant is a partnership, joint venture or syndicate, the agreement shall bind each partner <br />or party who has a beneficial interest, directly or indirectly, in the applicant; <br />(4) pursuant to 19.8.14.1413 NMAC, the applicant or corporate guarantor shall be required to <br />complete the approved reclamation plan for the lands in default or to pay to the state of New Mexico an amount <br />necessary to complete the approved reclamation plan, not to exceed the bond amount. <br />E. The director may require self -bonded applicants and corporate guarantors to submit an update of <br />the information required under Paragraphs (3) and (4) of Subsection A of 19.8.14.1410 NMAC within 90 days after <br />the close of each fiscal year following the issuance of the self -bond or corporate guarantee. <br />F. If at any time during the period when a self -bond is posted, the financial conditions of the <br />applicant or the corporate guarantor change so that the criteria of Paragraph (3) of Subsection A of 19.8.14.1410 <br />NMAC and Subsection C of 19.8.14.1410 NMAC are not satisfied, the permittee shall notify the director <br />immediately and shall within 90 days post an alternate form of bond in the same amount as the self -bond. Should <br />the permittee fail to post an adequate substitute bond, the provisions of Subsection E of 19.8.14.1406 NMAC shall <br />apply. <br />