Amount of bond, letter of credit, or cash deposit insufficient; new
requirements; hearing; cancellation of certificate
Sec. 408. (a) If the administrator reasonably determines that the
amount of the existing bond, letter of credit, or cash deposit is
insufficient to insure payment to the state of the tax and any penalty
and interest for which the distributor is or may become liable, then
the distributor shall upon written demand of the administrator file a
new bond or letter of credit, or increase the cash deposit. The
administrator shall give the distributor at least fifteen (15) days to
secure the new bond or letter of credit or make the increased cash
deposit.
(b) The new bond, letter of credit, or cash deposit must meet the
requirements set forth in section 406 of this chapter.
(c) If the new bond, letter of credit, or cash deposit required under
this section is unsatisfactory, the administrator shall cancel the
distributor's license certificate.
As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.77-1985,
SEC.2; P.L.97-1987, SEC.6; P.L.69-1991, SEC.5.
Last modified: May 28, 2006