UST Installation Bond

Underground storage tank installation bonds are usually required by a state obligee. Different states require different bond penalties to be held by the principal, so it is important to know what bond penalty is being required.

Underground storage tank installation bonds exist to ensure that all codes, compliances, and laws are dutifully carried out by the principal. They guarantee the availability of funds for corrective action if necessary, and they protect the obligee from liability related to the installation of underground storage tanks.

These bonds can be continuous or, in some cases, may need a continuation certificate. If a continuation certificate is required, it will be mailed to the principal. The principal is then responsible for delivering the certificate to the appropriate obligee.

Underground storage tank bonds typically have a 30-90 day cancellation provision, depending on the obligee’s preference.