Provision 11 (b) requires "a sufficient financial instrument that assures proper closure of the facility and assures against abandonment of any electronic equipment, and components and materials from such equipment." This is an increasingly important requirement of the R2 Standard with the recent increase in the abandonment of sites with significant numbers of CRTs. There are different ways that a company can meet this requirement. The goal is to ensure that in the event of a facility closure or abandonment, there are adequate funds to cover the cost of processing remaining inventory, as well as the cost of any cleanup that may be necessary to return the facility to leasable/saleable condition.
Some financial instruments for you to consider:
- Letter of Credit - Issued by a bank to a company, and payable to a designated "closure" representative.
- Surety Bond - Issued by an insurance company to pay damages in case the policy holder fails to perform an obligation (e.g. cleaning up a site).
- Restricted Funds - Funded by facility operator to cover the forecasted costs in the event of closure. Fund is held by a Trustee such as a bank or designated closure representative. After closure obligations have been met, any remaining reserves are returned to the facility operator.
Regardless of the financial instrument, it should be periodically reviewed to ensure it remains sufficient for the scope of your business.