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i <br />limit the scope of their individual performance warranties if such warranties, in the <br />aggregate, warrant the performance of all requirements of this article. <br />(3) (a) A "financial warranty is a written promise a party makes to the board to be <br />responsible for reclamation costs, up to the amount specified in subsection (4) of this section, <br />and includes proof of financial responsibility. A financial warranty shall be in such form as <br />the board may prescribe and may be provided by the operator, by a third party, or by any <br />combination of persons or entities. <br />(b) The board may accept interests in real and personal property as financial <br />warranties to the extent of a specified percentage of the estimated value of such property. <br />A person offering such a financial warranty shall submit information to show clear title to <br />and the value of such property. <br />(c) The board may refuse to accept a financial warranty if: <br />(I) The value of such warranty is dependent upon the success, profitability, or <br />continued operation of the mine; or <br />(II) It determines that such warranty cannot reasonably be converted to cash within <br />one hundred eighty days of forfeiture. <br />(d) For construction materials operations: <br />(I) This subsection (3) shall apply on July 1, 1993, to a deed of trust used as collateral <br />for a new financial warranty completed on or after such date; <br />(II) This subsection (3) shall be effective on January 1, 1996;, with respect to a: <br />(A) Financial warranty that is collateral for a deed of trust used as collateral for a <br />financial warranty in existence on July 1, 1993, and subsequent amendments of such deed <br />of trust; and <br />(B) Financial warranty completed before July 1, 1993, if the value of such financial <br />warranty includes a construction material value or if construction material value is used to <br />update such warranty. The value of a financial warranty described in this sub-subparagraph <br />(B) shall include the construction material value for the life of the warranty. <br />(e) An instrument offered as a financial warranty pursuant to this subsection (3) shall <br />provide that the board may recover any necessary costs it incurs, including attorney fees, in <br />foreclosing on or realizing collateral used to secure such financial warranty in the event of <br />forfeiture. <br />(f) Proof of financial responsibility may consist of one or more of the following, <br />subject to approval by the board: <br />(I) A surety bond issued by a corporate surety authorized to do business in this state; <br />(II) A letter of credit issued by a bank authorized to do business in the United States; <br />(III) A certificate of deposit; <br />(IV) A deed of trust or security agreement encumbering real or personal property and <br />creating a first lien in favor of this state; <br />(V) Assurance, in such form as the board may require, that: <br />(A) Upon commencement of production, the operator will establish an individual <br />reclamation fund to be held by an independent trustee for the board, upon such terms and <br />conditions as the board may prescribe, and funded by periodic cash payments representing