Release of surety of distributor's bond or institution issuing letter
of credit; retaining cash deposit; notice; cancellation of license
Sec. 409. (a) Sixty (60) days after making a written request for
release to the administrator, the surety of a bond furnished by a
distributor is released from any liability to the state accruing on the
bond after the sixty (60) day period. The release does not affect any
liability accruing before the expiration of the sixty (60) day period.
(b) One hundred eighty (180) days after making a written request
for release to the administrator, the financial institution issuing the
letter of credit for a distributor is released from any liability accruing
on the letter of credit.
(c) The administrator shall promptly notify the distributor
furnishing the bond or letter of credit that a release has been
requested, and unless the distributor obtains a new bond or letter of
credit which meets the requirements of section 406 of this chapter
and files with the administrator:
(1) the new bond within the sixty (60) day period; or
(2) the new letter of credit within the one hundred eighty (180)
day period;
the administrator shall cancel the distributor's license.
(d) Sixty (60) days after making a written request for release to
the administrator, the cash deposit provided by a distributor is
cancelled as security for any obligation accruing after the expiration
of the sixty (60) day period. However, the administrator may retain
all or part of the cash deposit for up to three (3) years and one (1) day
as security for any obligations accruing before the effective date of
the cancellation. Any part of the deposit that is not retained by the
administrator shall be released to the distributor. Before the
expiration of the sixty (60) day period, the distributor must provide
the administrator with a bond or letter of credit that satisfies section
406 of this chapter, or the administrator shall cancel the distributor's
license.
As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.97-1987,
SEC.7.
Last modified: May 28, 2006