49-1007. Liability of guarantors
281 words·~1 min read·
/az/title-49/49-1007A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.
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.