S.L. 549.89 Art. 13AGuarantee.

(1) Each producer or authorised representative shall provide a guarantee when placing a product on the market showing that the management of all WEEE will be financed. This guarantee shall ensure that operations referred to in regulations 12(1) and

13(1) relating to his product will be financed.

(2) The guarantee referred to in sub-regulation (1) shall be to the satisfaction of the competent authority and shall take the form of a recycling insurance or a blocked bank account and shall be submitted to the competent authority upon registration or renewal with the competent authority pursuant to regulation 16. The blocked bank account for a producer or an authorized representative shall take the form of a bank guarantee according to the rates prescribed in Schedule 13.

(3) A producer or an authorized representative shall be exempt from sub-regulation (2) if he is a member of a waste electrical and electronic compliance scheme.

(4) The recycling insurance referred to in sub-regulation (2) shall cover at least all of the costs of the collection, treatment, recovery and environmentally sound disposal of WEEE that will arise from the electrical and electronic equipment placed on the market in Malta by the producer, for a period of not less than the life of the product: Provided that the competent authority may stipulate additional measures to be covered by the aforementioned insurance.

(5) In cases where a producer or an authorised representative acting as a self-compliant producer fails to achieve the obligations pursuant to regulations 12(1) and 13(1), the competent authority shall seize the financial guarantee to finance the operations related to the management of WEEE that has not been collected, treated, recovered and disposed of in an environmentally sound manner by such producer or authorised representative.

(6) Without prejudice to sub-regulation (1), in the event that the business of a producer or authorised representative -

(a) ceases to trade, or

(b) goes into liquidation, the financial guarantee provided for in sub-regulation (2) shall not be used by any person or persons, including the liquidator, concerned for any purpose, including the discharge of liabilities to creditors, whether secured creditors, preferential creditors, creditors claiming under retention of title, creditors with claims supported by guarantees or indemnities, ordinary creditors or, subordinated creditors, other than for fulfilling the obligations of the producer concerned as laid down in regulations 12(1) and 13(1).