(a) Following the issuance of an effective order by a district
director (see Sec. 725.418), administrative law judge (see
Sec. 725.479), Benefits Review Board, or court that requires the
payment of benefits by an operator that has failed to secure the
payment of benefits in accordance with section 423 of the Act and
Sec. 726.4 of this subchapter, or by a coal mine construction or
transportation employer, the Director may request that the operator
secure the payment of all benefits ultimately payable on the claim.
Such operator or other employer shall thereafter immediately secure the
payment of benefits in accordance with the provisions of this section,
and provide proof of such security to the Director. Such security may
take the form of an indemnity bond, a deposit of cash or negotiable
securities in compliance with Secs. 726.106(c) and 726.107 of this
subchapter, or any other form acceptable to the Director.
(b) The amount of security initially required by this section shall
be determined as follows:
(1) In a case involving an operator subject to section 423 of the
Act and Sec. 726.4 of this subchapter, the amount of the security shall
not be less than $175,000, and may be a higher amount as determined by
the Director, taking
into account the life expectancies of the claimant and any dependents
using the most recent life expectancy tables published by the Social
Security Administration; or
(2) In a case involving a coal mine construction or transportation
employer, the amount of the security shall be determined by the
Director, taking into account the life expectancies of the claimant and
any dependents using the most recent life expectancy tables published
by the Social Security Administration.
(c) If the operator or other employer fails to provide proof of
such security to the Director within 30 days of its receipt of the
Director's request to secure the payment of benefits issued under
paragraph (a) of this section, the appropriate adjudication officer
shall issue an order requiring the operator or other employer to make a
deposit of negotiable securities with a Federal Reserve Bank in the
amount required by paragraph (b). Such securities shall comply with the
requirements of Secs. 726.106(c) and 726.107 of this subchapter. In a
case in which the effective order was issued by a district director,
the district director shall be considered the appropriate adjudication
officer. In any other case, the administrative law judge who issued the
most recent decision in the case, or such other administrative law
judge as the Chief Administrative Law Judge shall designate, shall be
considered the appropriate adjudication officer, and shall issue an
order under this paragraph on motion of the Director. The
administrative law judge shall have jurisdiction to issue an order
under this paragraph notwithstanding the pendency of an appeal of the
award of benefits with the Benefits Review Board or court.
(d) An order issued under this section shall be considered
effective when issued. Disputes regarding such orders shall be resolved
in accordance with subpart F of this part.
(e) Notwithstanding any further review of the order in accordance
with subpart F of this part, if an operator or other employer subject
to an order issued under this section fails to comply with such order,
the appropriate adjudication officer shall certify such non-compliance
to the appropriate United States district court in accordance with
Sec. 725.351(c).
(f) Security posted in accordance with this section may be used to
make payment of benefits that become due with respect to the claim in
accordance with Sec. 725.502. In the event that either the order
awarding compensation or the order issued under this section is vacated
or reversed, the operator or other employer may apply to the
appropriate adjudication officer for an order authorizing the return of
any amounts deposited with a Federal Reserve Bank and not yet
disbursed, and such application shall be granted. If at any time the
Director determines that additional security is required beyond that
initially required by paragraph (b) of this section, he may request the
operator or other employer to increase the amount. Such request shall
be treated as if it were issued under paragraph (a) of this section.
(g) If a coal mine construction or transportation employer fails to
comply with an order issued under paragraph (c), and such employer is a
corporation, the provisions of Sec. 725.609 shall be applicable to the
president, secretary, and treasurer of such employer.
