A. If the owner or operator of an underground storage tank files for protection under the federal bankruptcy laws and with reasonable diligence jurisdiction in a state court or the federal courts cannot be obtained over an owner or operator likely to be solvent at the time of judgment, any claim arising from conduct for which evidence of financial responsibility must be provided pursuant to section 49-1006 may be asserted directly against the guarantor. In the case of an action pursuant to this section, the guarantor may invoke all rights and defenses which would have been available to the owner or operator against the claimant if an action had been brought against the owner or operator by the claimant and which would have been available to the guarantor if an action had been brought against the guarantor by the owner or operator.
Terms Used In Arizona Laws 49-1007
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Guarantor: means a person, other than an owner or operator, who provides evidence of financial responsibility for an owner or operator pursuant to this chapter. See Arizona Laws 49-1001
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Operator: means a person in control of, or having responsibility for, the day-to-day operation of an underground storage tank. See Arizona Laws 49-1001
- Person: means an individual, trust, firm, joint stock company, corporation, joint venture, partnership, association, consortium, state, municipality, interstate body, commission, political subdivision of a state and the United States government. See Arizona Laws 49-1001
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Tank: means a stationary device constructed of wood, concrete, steel, plastic or other nonearthen materials and used to contain regulated substances. See Arizona Laws 49-1001
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. The total liability of any guarantor is limited to the aggregate amount which the guarantor provides to the owner or operator as evidence of financial responsibility and which the owner or operator provides to the department pursuant to section 49-1006.
C. Nothing in this section shall be construed to limit any other state or federal statutory, contractual or common law liability of a guarantor to its owner or operator including, but not limited to, the liability of a guarantor for bad faith either in negotiating or in failing to negotiate the settlement of a claim.
D. Nothing in this section shall be construed to diminish the liability of a person under the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96-510; 94 Stat. 2769; 42 United States Code sections 9607 or 9611) or other applicable law.