North Carolina General Statutes § 105-113.38 Bond or irrevocable letter of credit

The Secretary may require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from loss if the dealer fails to pay taxes due under this Part. A bond shall be conditioned on compliance with this Part, shall be payable to the State, and shall be in the form required by the Secretary. The Secretary shall proportion a bond amount to the anticipated tax liability of the wholesale dealer or retail dealer. The Secretary shall periodically review the sufficiency of bonds required of dealers, and shall increase the amount of a required bond when the amount of the bond furnished no longer covers the anticipated tax liability of the wholesale dealer or retail dealer. The Secretary shall decrease the amount of a required bond when the Secretary determines that a smaller bond amount will adequately protect the State from loss. For purposes of this section, a bond may also include an irrevocable letter of credit.  (1969, c. 1075, s. 2; 1991, c. 689, s. 272; 2012-79, s. 2.1.)

Sections:  Previous  105-113.30  105-113.31  105-113.32  105-113.33  105-113.35  105-113.36  105-113.37  105-113.38  105-113.39  105-113.40  105-113.40A  105-113.68  105-113.69  105-113.70  105-113.71  Next

Last modified: March 23, 2014