Chapter 3745-92 Escrow Requirements
As used in this chapter of the Administrative Code:
(B) "Public entity" means the federal government, the state, any political subdivision, and any agency, institution, or instrumentality thereof.
If the system for which an application is made under rule 3745-91-02 of the Administrative Code is a community water system which serves or will serve fewer than five hundred service connections, and the system is not owned and operated by a public entity, or a system regulated by the public utilities commission, evidence shall be submitted prior to approval under said rule showing the following:
(B) The name and location of the escrowee, which shall be a bank or other institution approved in writing by the director.
The amount provided in financial assurance shall be one hundred thousand dollars unless the cost of the completed community water system as estimated by the engineer responsible for the design of the project is less than six hundred sixty-six thousand six hundred sixty-six dollars, in which case the amount of financial assurance shall be fifteen per cent of the estimated cost. If the project is for the construction of less than an entire system, the amount to be used for this purpose is the aggregate amount of contracts for construction, installation, or modification of that part of the system that will be affected in the project. Whenever the executed contracts for construction, installation, or modification of the system or part thereof, including increases due to change orders, show a cost different from that of the above estimate, the total amount of financial assurance shall be increased or decreased so that the financial assurance is not less than fifteen per cent of the contract amount including increases due to change orders, or one hundred thousand dollars if such contract amount is six hundred sixty-six thousand six hundred sixty-six dollars or more. No work shall be performed under such contract when the amount of financial assurance is less than the amount required to be deposited by this rule, without prior written consent of the director.
(A) The escrow agreement shall be irrevocable unless released by the director upon a showing that the system or part thereof for which the escrow deposit is made:
(1) Has gone out of service and is no longer needed by the persons it formerly served;
(2) Has been acquired and is being operated by a public entity or has come under regulation of the public utilities commission; or
(B) If there is a change of ownership of the system and a release of the escrow agreement pursuant to paragraph (A) of this rule, the escrow deposit shall be released to the new owner.
(A) If the director finds that a system or part thereof for which financialassurance is required under division (A) of section 6109.08 of the Revised Code is being operated but is not properly constructed, maintained, repaired or operated, the director may order the owner and the operator of the system or part thereof to correct the deficiencies in construction, maintenance, repair or operation. If the order required construction, installation, or modification, the owner or operator, within ninety days of receipt of such order or within such additional period as the director may approve, shall submit plans for correcting the deficiency pursuant to rule 3745-91-02 of the Administrative Code.
(B) The director shall authorize use of funds from the financialassurance as necessary to enable compliance with the order. Upon prior written approval of the director the water system shall make or cause payment to be made to persons who have performed work under contract with the owner or the owner's agent, or a designated representative, for the purpose of correcting such deficiencies in construction, maintenance, repair or operation, as ordered by the director. When funds from the financial assurance are used, the owner or the operator of the system or part thereof shall replace such funds within six months of use.
(C) If the system is owned by multiple owners of lots served by the system, the "owner" shall be considered notified for purposes of this rule when notice of the director's order is sent by first-class mail to the mailing address of the association representing the lot owners or to all the known officers of such association, or, if neither of these methods is possible, to the last known address of each lot owner.
Nothing in this chapter of the Administrative Code prohibits the bank or savings institution holding the escrow deposit from charging the person requesting an escrow a fee for its services.