Performance Bond

{
  "id": "MLC-T-ENV-020549",
  "term": "Performance Bond",
  "field": "Environment",
  "definition": "1. Cash or securities deposited before a landfill operating permit is issued, which are held to ensure that all requirements for operating and subsequently closing the landfill are faithful performed. The money is returned to the owner after proper closure of the landfill is completed. If contamination or other problems appear at any time during operation, or upon closure, and are not addressed, the owner must forfeit all or part of the bond which is then used to cover clean-up costs.\n\n2. For purposes of TSDF financial assurance, a type of surety bond that guarantees that owners and operators will comply with their closure, post-closure, and liability requirements.\n\n3. Fee levied upon companies that extract certain natural resources, such as timber, coal, oil, and gas. Amounts deposited with the performance bond can be refunded when the payer fulfills certain obligations. In that sense, a performance bond acts like a deposit-refund system.",
  "subject": "General environmental",
  "references": [
    "Terms of Environment",
    "RCRA Orientation Manual 2008 Glossary",
    "EPA The United States Experience with Economic Incentives for Pollution Control at http://yosemite.epa.gov/EE/epa/eed.nsf/webpages/USExperienceWithEconomicIncentives.html"
  ],
  "url": "https://mlchart.com/terminology/environment/performance-bond/"
}