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Instructions for Certificate of Deposit <br />Minerals Program <br />Mineral Mining, Mineral Exploration and Mineral Prospecting Operations <br />Public Funds Account <br />A Certificate of Deposit (CD) is a type of collateral bond. The permittee deposits money with a bank that <br />Provides the State with a Certificate stating funds are available for reclamation. C.R.S. 34 -32 -117 and <br />C.R.S. 34- 32.5 -117 addresses Financial Warranties. The following items should be met: <br />The CD must be issued by a PDPA eligible Colorado Bank, this is due to the PDPA requirements. <br />2. The Certificate of Deposit shall be set up as a Public Funds Account (this must be stated on the CD, the signature <br />card/sheet, and the books of the bank). The Division's PDPA number must be shown on the CD and on the signature <br />card. The Division's PDPA number is 010004005101. <br />3. CD's must be assigned to the State of Colorado/Mined Land Reclamation Board. The bank issuing the certificate must <br />use the Division's address (1313 Sherman St., Rm 215, Denver, CO 80203); and phone number ((303) 866 -3567) on <br />the certificate and also on the books of the bank. <br />4. The CD must be issued on an automatically renewable term. This must be stated on the CD and on the books of the <br />bank. <br />5. The original certificate is provided to the Division of Reclamation, Mining and Safety, 1313 Sherman St., Rm 215, <br />Denver, Colorado 80203 for safekeeping at the State Treasurer's office. <br />6. The Tax ID or Social Security number on the CD must be the original depositor of the monies. The original depositor <br />of the monies must sign the Taxpayer Identification area on the signature card/sheet verifying the Tax ID number <br />before sending the signature sheet/card to the Division for signature. The only approved endorsement signature on the <br />CD is the Division Director's. The Division will return the signature card/sheet to the bank with the Director's signature. <br />The interest may not accrue or compound against the principal, but should be paid out to the original depositor of the <br />monies. The interest may be deposited into a Checking, Savings, or the interest may be paid out. All interest checks, <br />statements, correspondence pertaining to the CD must be sent to the Division and the Division will then forward the <br />information to the Original Depositor of the monies. <br />7. The bank is required to place a lock or hold on the account, until such time as the funds are released by the Division <br />Director. The bank must provide proof of such lock or hold to the Division. <br />8. An Assignment of Certificate of Deposit form must be executed in the presence of a notary with a copy provided to the <br />bank to allow only the Colorado Mined Land Reclamation Board access to these funds until the Division Director <br />releases the funds back to the Operator. <br />9 The operator must submit an executed "Financial Warranty /Certificate of Deposit" form in support of the Certificate of <br />Deposit being submitted as a bond for a mining operation, or they must submit an executed "One -Site Prospecting <br />Bond" form or a "Statewide Prospecting Bond" form in support of the Certificate of Deposit being submitted as a bond <br />for Mineral Exploration or Mineral Prospecting. <br />If you have any questions regarding the issuance of the CD, please contact the Minerals Program Bonding Specialist at <br />(303) 866 -3567. <br />M:\min\share \bondforms \CD Instructions doe <br />WJ \S I I <br />Gt <br />