License to distributor; bond, letter of credit, or cash deposit
Sec. 406. (a) Concurrently with the filing of an application for a
distributor's license, the department may require an applicant to file
with the administrator a surety bond, a letter of credit, or a cash
deposit:
(1) in an amount of not less than two thousand dollars ($2,000)
nor more than a three (3) month tax liability for the applicant as
estimated by the administrator; and
(2) conditioned upon the prompt filing of true reports and
payment of all gasoline taxes levied by the state, together with
any penalties and interest, and upon faithful compliance with
the provisions of this chapter.
(b) The administrator shall determine the amount of the
distributor's bond, cash deposit, or letter of credit. If the applicant
files a bond or a letter of credit, the bond or letter of credit must:
(1) be with a surety company or financial institution approved
by the administrator;
(2) name the applicant as the principal and the state as the
obligee; and
(3) be on forms prescribed by the department.
As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980,
P.L.51, SEC.18; P.L.77-1985, SEC.1; P.L.97-1987, SEC.4;
P.L.96-1989, SEC.2; P.L.69-1991, SEC.4.
Last modified: May 28, 2006