§ 177.503. Performance commitment.
(a) The manufacturer or distributor shall agree that, if it decides to discontinue participation in the program, or if its name is removed from the list of approved manufacturers or distributors of emission analyzers, OBD-I/M check equipment or equipment for the gas cap test and visual inspection by the Department, it will buy back all emission analyzers, dynamometers, OBD-I/M check equipment or gas cap/visual inspection equipment from the inspection stations which purchased them for an amount equal to the unamortized cost based on straight line amortization over the expected useful life of the analyzer, dynamometer, OBD-I/M check equipment or gas cap/visual inspection equipment.
(b) The manufacturer or distributor shall agree to provide a specific performance bond, irrevocable letter of credit, a certified check, or bank cashier’s check drawn to the order of the Pennsylvania Department of Transportation, or other suitable financial instrument acceptable to the Department:
(1) For analyzer and dynamometer manufacturers or distributors, in the amount of $1 million initially, and in the amount of an additional $400,000, for every 250 analyzers sold to Pennsylvania certified emission inspection stations.
(2) For OBD-I/M check equipment manufacturers or distributors, in the amount of $500,000.
(3) For gas cap/visual inspection equipment, in the amount of $200,000.
(c) This security will be used:
(1) To insure that money is available to reimburse certified emission inspection stations for the reasonable value of existing emission analyzers, dynamometers or OBD-I/M check equipment in the event that the manufacturer or distributor goes out of business in this Commonwealth or is removed by the Department from the list of approved manufacturers or distributors for substantial failure to comply with the terms and conditions of the agreement or this chapter.
(2) In part or in whole in the event of nonperformance or default of the manufacturer or distributor.
(d) Other Department-approved equipment service providers shall agree to provide a specific performance bond, irrevocable letter of credit, a certified check, or bank cashier’s check drawn to the order of the Pennsylvania Department of Transportation, or other suitable financial instrument acceptable to the Department, in the amount of $200,000. These funds may be used in part or in whole in the event of nonperformance or default of the service provider.
Source The provisions of this § 177.503 amended November 21, 2003, effective November 22, 2003, 33 Pa.B. 5706. Immediately preceding text appears at serial page (235303).
Cross References This section cited in 67 Pa. Code § 177.504 (relating to revocation of approval).
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