Reclamation
Bonds

BOND INFORMATION AND INSTRUCTIONS

There are four types of bonds accepted by the Idaho Department of Lands:

1. Corporate Surety Bonds

• Surety bonds are purchased from a bond or insurance company licensed to do business in Idaho.
  
• They must be submitted on a Surface Mining Reclamation Bond form.
  
• The company issuing the bond must include their bond number and the permit, plan or lease number on the upper right hand corner of the form.
  
• The bond must be made payable to the State of Idaho and carry the notarized signature of the surety, signature of the Idaho Resident Agent and signature of the principal.

2. Certificate of Deposit - Time Deposit Receipt

• Certificates of deposit and time deposit receipts must be issued by a federally insured institution.
  
• Certificates and receipts will not be released for reissuance and should therefore be automatically renewable.
  
• The certificate or deposit receipt must be made out to the principal (first) or the Idaho Department of Lands (second), (i.e., "John Doe, et. al or Idaho Department of Lands"), in that order.
  
• The State retains physical possession of the document.
  
NOTE: ONLY ORIGINAL DOCUMENTS WILL BE ACCEPTED IN LIEU OF BOND.


• The certificate or deposit receipt must be submitted to the Department with a completed, notarized collateral bond form.

3. Letters of Credit

• Letters of credit must be issued by an institution authorized to do business in the State of Idaho or through a confirming bank authorized to do business in the State of Idaho which engages that it will itself honor the credit in full.


• As an alternative, a foreign bank may execute or consent to jurisdiction of Idaho courts on a form prescribed by the Director.


• The account party on all credits must be identical to the entity identified on the lease, permit or plan.


• The credit document must exactly follow the wording of the sample.


• A Certificate of Secretary (see sample) must always accompany a letter of credit.


• In addition, the letter of credit must be submitted with a completed, notarized collateral bond form.

4. Cash

• An operator or lessee may submit a cash bond to be held by the Department.
  
• Interest does not accrue on cash bonds.
  
• Cash bonds must be accompanied by a completed, notarized collateral bond form.

PLEASE NOTE