Blalock, 012280 MSAGO, 19800122

Docket Nº:19800122
Case Date:January 22, 1980
Court:South Carolina
Mr. Charles Blalock
No. 19800122
Mississippi Attorney General Opinions
January 22, 1980
         Mr. Charles Blalock          Executive Director          Mississippi Department of Natural Resources          2390 Highway 80 West          Jackson, Mississippi 39204          Surety Bonds Under State Law           Dear Mr. Blalock:          Your letter dated January 7, 1980 addressed to Attorney General A.F. Summer has been forwarded to the undersigned for research and reply.          Your letter stated:
“In the process of developing Mississippi's proposed surface coal mining rules and regulations to make them acceptable to the Federal Office of Surface Mining, the Mining and Reclamation Section of the Bureau of Geology and Energy Resources has come upon two items that need to be clarified by your office. “Section 806.12(e) (2) of the Department of Interior, Office of Surface Mining's Rules and Regulations states that 'The regulatory authority (Mississippi's Department of Natural Resources) shall not accept a surety company's bond in excess of the company's maximum single obligation as provided by State law in the State where the permit area is located, unless the surety company satisfies State law for exceeding that limit.' Section 806.12(e) (4) states that 'The regulatory authority may provide in the bond that the amount shall be confessed to judgment upon forfeiture, if this procedure is authorized by State law.' “What, if any, State laws apply to a company's maximum single obligation limit and conditions for exceeding that limit? What, if any, State law provides for procedures to collect bonds upon a judgment of forfeiture? Also, would these State laws, if they exist, apply to letters of credit? “Since February 15, 1980, has been set as the deadline for getting the finished version of the rules and regulations back to the Regional Office of Surface Mining for review, it would be appreciated if you give this request your earliest possible attention. “If you have any question, please direct them to the Bureau of Geology and Energy Resources at 354-6228.”
         Provisions of the Mississippi Code of 1972 governing the regulation of surety companies are located at Section 83-27-1 through Section 83-27-11, copies of which are attached. Sections 83-27-1 and 83-27-5 pertain to specific requirements for a surety company. Of particular interest relative to your questions is Section 83-27-9 which limits liability for a surety in th be accepted as surety on a...

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